What does the cost per app install metric measure?

The cost per app install metric specifically measures the investment required to acquire a new customer who downloads a specific app. It focuses on the financial aspect associated with gaining a new user who takes the action of installing the app, making it a crucial indicator for app developers and marketers in understanding the efficiency of their advertising campaigns aimed at driving app installations.

This metric allows advertisers to evaluate how much they are spending, typically through various marketing channels, to attract users to install their application. A lower cost per app install indicates that the advertising strategy is effective and yielding greater returns on investment in terms of new users.

In contrast, the other options do not align precisely with what the cost per app install metric measures. While the expenses related to advertising placement and the total expenses incurred during the ad campaign are related to marketing costs, they do not specifically categorize the cost per install. Similarly, while the cost to encourage user actions within an app (like in-app purchases or registrations) deals with user engagement metrics, it does not directly reflect the cost of acquiring a new app install. Thus, understanding the cost per app install helps businesses optimize their marketing spend and improve user acquisition strategies.