You create a video, give it to a social network, set a budget and say: Give me the most installs for my budget!
The social network will then display the CPI to you!
The CPI is the money you spent divided by the installs you got.
This process is very established and has been used for many years!
The CPM (price for 1000 ad impressions) is set by the social network and heavily influences the CPI you get.
The CPM heavily fluctuates through changes in economy, seasonal changes and the factor of demand & supply. As a developer, you have no influence on these factors.
The majority of traffic does come from SDK networks. Here you create your own CPI, the “bid CPI”.
With the “bid CPI”, you tell the network how much you want to pay for every install.
SDK networks then measure the performance of your video and determine the IPM for you.
This IPM is usually stable and comparable throughout all ad networks!
The IPM shows the pure marketability of your game, without CPM effects.
It had a mediocre facebook CPI of 0.37ct but a high IPM of 150 on the sdk networks.
This means that the creative had a conversion rate of 15%. The IPM told us that this game has good marketability!
So we continued with it and two weeks later it was #1 in 10 countries including the USA.