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How to Lower CPA & CPI in App Advertising Campaigns

This article discussed how we minimize CPA and CPI when running app advertising campaigns to promote our app more efficiently and cost-effectively.


App Advertising Campaigns

The marketing abbreviations CPM, CPC, CPL, CPA, and CPI are quite common and are used and cited everywhere. Cost per Click, Cost per Lead, or Cost per Impression are examples of terms that frequently become the company's KPIs due to their special capacity to assess the profitability of marketing efforts. In particular, CPA and CPI are important advertising metrics in app growth. But what do they mean?


CPA, which stands for "Cost per Action" or "Cost per Acquisition," is a purchasing strategy in which advertisers only pay when a certain targeted action, such as the successful completion of a sign-up form, a subscription, or a sale, has taken place. Given the minimal risk involved, this is one of the safest strategies available on the market today for increasing sales through media purchases. With CPA advertising and CPA site solutions, you only pay for what you really receive; if a potential client decides not to make a purchase, you are not responsible for paying the CPA service for the time and effort it took to find them.


CPI, or Cost per Installation, is a media buying method where advertisers (quite often app developers) only pay if their application has been downloaded. CPI advertising is preferred above other paid marketing approaches by the majority of app business owners and marketing managers. Cost per Installation is similar to Cost per Action in that you only pay when your application is installed, which appears like a secure media buying strategy. However, exercise caution: either a respectable vendor will select people who will actually use your app, or a scammer will offer in-app benefits, such as +50 coins if the user downloads your app, which they will likely remove afterward. Some vendors may even send out bots to download your software before deleting it to make place for new ones, giving the impression that you are paying for actual people to use your app while you believe otherwise.


Once we know this information, we should then consider: How do we minimize CPA and CPI when running app advertising campaigns so that we can promote our app more efficiently and cost-effectively?


Improving your tap-through rate.

When attempting to enhance CTR across various digital marketing channels, there are various elements to take into account. Where you want to raise CTR determines how you increase CTR.


To raise CTR on a PPC ad, you need to pay very close attention to your headline and copy. For instance, if you have a poor CTR on a social media platform like Facebook or Twitter, think about which hashtags can help you reach your target demographic.


Here are four ideas to keep in mind as you work to increase CTR:

  • Optimize your headline and copy. Just use one or two focus keyword(s) in your headline and copy. Appeal to your audience’s emotions and needs: solve a problem for them.
  • Include CTAs. Write a call to action that is clear and appealing. Your CTA should entice your viewers to click by being welcoming.
  • Use images. Visuals can significantly improve CTR. Different picture types may perform better than others depending on the marketing channel. To determine which photos are most effective for your business, conduct A/B testing with several image formats.
  • Try using hashtags. Hashtags function on a variety of websites, including Facebook, Twitter, and LinkedIn. To improve your chances of getting seen by your target audience, investigate the trending or popular hashtags in your industry and utilize them in conjunction with the rest of your material.


Optimizing your conversion rate.

If you're doing it right, testing is also necessary for conversion rate improvement, along with time and money. To increase the likelihood that a potential client who finds your website through a search engine converts into a qualified lead or a paying customer, it is more than worth your time to become familiar with the fundamental concepts and metrics of website conversion optimization.


You can take a number of actions to raise your conversion rate, including:

  • Write PPC ads that are interesting, clickable, and highly relevant to the keyword or search query and your target market. The better, as such customers are more likely to convert, if you're targeting high-intent mid-tail and long-tail keywords that signify a searcher who is late in the purchase cycle.
  • Keep your advertisements and accompanying landing pages very relevant. Your landing page should fulfill the promise of your ad's call to action and make it simple for the searcher to take that action, whether it be subscribing to a newsletter, downloading a white paper, or making a purchase.
  • Test the layout of your landing page. Use A/B testing to determine the layout, copy, and colors that will encourage the greatest number of site visitors to submit their information, give you a call, or otherwise convert to a valuable lead or customer.


Taking advantage of Apple Search Ads.


Apple Search Ads


A channel for acquisition is Apple Search Ads. Advertisers and their targeted target audience are linked through this channel. You may even bid on particular terms on the App Store thanks to it. These bids determine where your app will show up in the iPhone and iPad App Store search results. One of the finest areas for your ads to appear to enhance conversion rates is at the top of App Store search results. Most app publishers haven't yet embraced this acquisition channel because it is still relatively new. Why, therefore, do Apple Search Ads?

  • High conversion rate on Apple Search Ads. 70% of App Store visitors use search to find apps, and 65% of downloads take place immediately following a search on the App Store, according to Apple Search Ads. To download apps, users go to the App Store. There is unquestionably a benefit to being recommended at the top of the search results.
  • Engaged user base. An app publisher, Voodoo, found that users who download apps via Apple Search Ads generate an extra 18% in income on average. Additionally, they have a retention rate that is 5% greater than users who find the app through other channels. They are more inclined to subscribe to services and make in-app purchases. This indicates that the clientele acquired through Apple Search Ads is a lucrative one that you shouldn't pass up.
  • Low Costs and High Returns. Apple Search Ads are both fresh and reasonably priced. The typical cost-per-tap (CPT) is really reasonable. It is incredibly inexpensive when compared to Facebook and Google. This is explained by the fact that the acquisition channel is still a relatively new platform with few advertisers on it. Now is a fantastic moment to start using the platform because of its remarkable return on ad investment. Starting now will maximize your profits from the still-unsaturated, cost-effective market.


So how can we make full use of Apple Search Ads? What you need to keep in mind is that: You are limited to using 100 keywords on a product page in the App Store. You must be succinct in your selection of them. Even if ranking highly for less popular terms will give you less attention, the people who see your advertisement may be more interested in that particular thing. You will receive more traffic if you rank lower for popular searches, but you run the risk of getting buried in the flood of other apps using those search terms.


Optimizing CPT bids.

CPT is another important metric in-app advertising. It means Cost per thousand, representing the cost that an advertiser pays in order to obtain one thousand views or impressions of an advertisement.


Your ad budget will run out faster if your CPT bids are higher, and eventually, it will be difficult to maintain the undesirable CPA. Optimizing your CPT bids is a further strategy to lower CPA. Here are two simple tips:

  • Use negative keywords. You can prevent your ad from being matched to irrelevant search terms.
  • Pause keywords. If you find some irrelevant keywords, you'd better pause them. By redirecting your ad budget to more efficient keywords, you can decrease the CPT bid as well as CPA.
  • Work with segments. Segmentation can equally work to optimize the CPT bids. When you use this technique to decrease the average CPT, you influence the conversion rate in the first place.


Optimizing for low-funnel events.

If you optimize for a lower funnel in Apple Search Ads, you target users that have already interacted with your app and have a higher intention to make an in-app purchase, subscribe, and so on.


We all know that both CPA and CPI are actually a RATE. So in order to reduce the ratio, in addition to doing what works, we need to reduce what doesn't work. So we need to plan the campaigns scientifically and monitor them closely to identify ineffective payouts and cancel them in time.


Appranking is such a smart and scientific website.


We have many integrated tools to facilitate and pinpoint your app growth so you don't get lost in ineffective work. Click Appranking for a one-stop service.

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