In this article, FraudScore asked Peter Plachta, CEO at ToroGrowth, to share his tips on the best ad pricing models for mobile apps.
So, you want to acquire the first users of your mobile app through paid promotion but are not sure which ad pricing model to pick? Every mobile app developer or owner faces this question at some point.
For the last several years, ad pricing models for mobile apps have remained largely unchanged:
CPM (Cost per Mille)
Advertising networks still favor the CPM model, which calculates cost per 1000 ad views. This model mainly benefits the network and publisher. Due to low CTRs, advertisers may struggle to break even. Publishers themselves often prefer CPM, but it is not recommended for advertisers and should be phased out.
CPC (Cost per Click)
Calculates cost based on ad clicks. According to statistics, advertisers lose billions yearly to fake clicks (20–60% of traffic). With CPC, it is essential to choose the right partners, start with small budgets, and analyze traffic with tools like FraudScore.
CPI (Cost per Install)
The most popular model for introducing mobile apps. Advertisers pay based on installations, plus the attribution platform cost.
CPI can be split into:
- Incentive model – Users receive rewards (points, prizes, bonuses) for installing.
- Non-incentive model – Users receive nothing. Be vigilant about fake installs, which are visible on attribution platforms but not in the Google Play Store. Check GAID identifiers and compare with in-app analytics using platforms like devtodev.
CPA, CPE (Cost per Action / Cost per Engagement)
Price is calculated per user action in the app. Suitable for well-established apps that can guarantee a volume of registrations, in-app purchases, or high-level players. New apps without download history may struggle with this model due to financial and operational barriers.
Choosing partners
Mobile app attribution platforms provide solid data on the best networks. Examples:
- Appsflyer Performance Index – ranks networks by volume, retention, and ROI.
- Thalamus.co – database of ad networks, supported pricing models, and ad formats.
Being in a ranking does not replace monitoring traffic quality. Grant Cohen (Kochava) reports that up to 50% of traffic in some networks may be fake.
Before contacting a network, clarify your goals:
- E.g., 5000 installations from the Philippines to test app stability (Mobile Soft Launch)
- First 5000 users in UK/Australia to measure ARPDAU
Ask networks about fraud prevention and response to fake clicks or installs.
TESTS
Start with small campaigns to test traffic quality.
Short-term signals: completing tutorials, registration, reaching levels 1–2 in a game.
Long-term signals: retention, ARPU, ROI (7–14 days).
Block publishers that generate installs without meaningful user engagement. Use an attribution platform that provides insights into post-event data and campaign results.
Summary
Testing multiple ad pricing models is inevitable for new apps. Use campaign results to define long-term mobile user acquisition strategy (ToroGrowth).
- Start with CPC and CPI with trusted partners (e.g., Appsflyer list).
- Monitor traffic and installation quality from day one.
- Continuously optimize campaigns using the Start → Analysis → Optimization → Start cycle.
- Avoid incentivized traffic due to high fake installation risk.
Campaigns require payment to multiple parties: ad networks, publishers, and attribution platforms. Ensuring real traffic and installs is crucial for success.
Written by Peter Plachta, ToroGrowth – App Marketing Agency CEO, exclusively for the FraudScore blog.