How to Calculate eCPI: Common Pitfalls and Optimization in UA
Running user acquisition (UA) campaigns, global marketers frequently face the same question: “How efficient is our campaign?” At first glance, high install volume may suggest success, but if the majority of users churn within days, the reality is quite different. This is why eCPI (Effective Cost Per Install) has become such a crucial metric.
Understanding eCPI requires more than knowing its formula. The real challenge lies in how you define “effective installs” and which user behaviors you count as valid. This article highlights the most common pitfalls UA managers encounter and provides strategies to calculate and optimize eCPI by factoring in genre characteristics and channel choices.
The Reality of eCPI for UA Managers
High Install Numbers, Low Retention
Consider a publisher launching a puzzle title. Based on CPI, the company acquired installs at $3 per user. However, fewer than 20% of those users remained active after seven days. Once recalculated, the actual cost per retained user was closer to $12.
Market and Channel Variations
A global RPG title showed stark differences: eCPI in North America was $15, while in Southeast Asia it was only $6. At face value, CPI favored Southeast Asia. Yet, due to higher lifetime value (LTV), the North American campaign delivered stronger ROI.
This illustrates that eCPI is not a universal figure. It must always be interpreted in the context of market dynamics, genre, and campaign objectives.
Related insights for publishers targeting key mobile markets:
How to Calculate eCPI: Moving Beyond the Formula
The Basic Formula
eCPI = Total Ad Spend ÷ Effective Installs
Defining effective installs should always align with campaign objectives:
Puzzle/Casual: users who play for 3+ days
RPG/MMORPG: tutorial completion + reaching a specific level
Strategy/Simulation: first in-app purchase or 5+ sessions
Accounting for Hidden Costs
UA managers often overlook indirect expenses that should be factored into eCPI:
Creative production and A/B testing
Tracking and analytics solutions
Campaign management resources
Only by including these can you uncover the true eCPI.
eCPI vs. CPI vs. LTV
CPI vs. eCPI
CPI is a quick-to-measure metric, but it includes low-quality users. eCPI, by contrast, reflects installs that drive actual value, offering a far more accurate measure of campaign performance.
eCPI in Relation to LTV
When eCPI < LTV, UA investments generate positive ROI, meaning the cost of acquiring effective users is outweighed by their lifetime revenue.
When eCPI > LTV, marketing spend exceeds the long-term value of acquired users, creating unsustainable conditions that demand immediate course correction.
Genre-Specific Insights
Casual/Puzzle: Typically low CPI but disproportionately high eCPI → active user quality is critical.
RPG/MMORPG: Higher CPI but stable retention → sustainable eCPI, strong long-term ROI.
Strategy/Simulation: Higher acquisition barriers, but when balanced against LTV, they can yield excellent ROI.
Practical Strategies for Optimizing eCPI
Redefining “Effective Installs” with Behavioral Data
Relying on “downloads” alone is insufficient. UA teams must incorporate behavioral indicators—such as retention rates, playtime, or session counts—into their definition of effective installs.
Creative Optimization through A/B Testing
High eCPI often results from creatives that attract the wrong audience. Key approaches include:
Highlighting genre-specific gameplay moments
Adding social proof elements
Tailoring CTAs by segment
Testing should measure not just CTR, but also retention and engagement.
Media Strategy: Installs vs. Engagement
Traditional incentivized ads may increase install volume but also inflate churn. Playtime-based rewarded media, however, requires users to engage meaningfully before receiving rewards. This helps:
Eliminate low-quality installs
Capture real session and playtime data
Align eCPI more closely with LTV
Strategic Summary: How to Calculate eCPI
eCPI is far more than the cost per install—it is a measure of effective installs that requires:
A precise definition of user quality metrics
Triangulation with CPI and LTV to evaluate ROI
Market- and genre-specific interpretation
Notably, playtime-based rewarded media can drastically improve eCPI by filtering out low-value installs and aligning acquisition metrics with actual engagement.
Looking to maximize the efficiency of your UA campaigns? Contact us at [email protected] to gain access to global optimization insights tailored for your next campaign.
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