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# How Would I Calculate this? Per install cost?

September 2016

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I got this question from one of my co-worker, anyone here have any idea how to calculate this.

If you have an install to “metric a” conversion rate of 14% and a

conversion rate from “metric a” to “metric b” of 30% and a conversion rate from “metric b” to “metric c” of 50% and you are willing to pay $25 per “metric c” how much would you be willing to pay per install?

a. Your funnel would look like this:

install (100%) ---> metric a (14%) ---> metric b (30%) ----> metric c (50%)

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## How Would I Calculate this? Per install cost?

September 2016

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Hi

Well rather than back calculating like this you can also bid for in-app actions Where metric C can be your in-app action.

But if you still want to bid on installs then https://docs.google.com/spreadsheets/d/1y2NboAb0fiAviBbyygqDU5qN0QDiW83qNjunxCZ33Is/edit#gid=0 this should help you.

**LinkedIn | @nikhilparachure | My Blog**

## How Would I Calculate this? Per install cost?

September 2016

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Thanks for your help niks but if you could elaborate the calculation for me.

## How Would I Calculate this? Per install cost?

September 2016

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Lets put this into terms that make a bit more sense. A B and C are stages in the funnel. A being the entry into the funnel and C being the point the person makes a purchase. B for the sake of labeling we will call pre-selling.

So we will say there is 100 people across the entry of your funnel. 14% of them actually enter. ( 14 people ) 30% then move to the pre selling stage. that means 4.2 people actually did what ever it was in stage B. ( 14 / .3 ). now onto stage C, 50% of the 4.2 people will pay $25. ( 4.2 / .5 = 2.1 )

that means 25/2.1 = $11.90 will be cost per install

Community members, please Correct me if I am wrong, i just tried best from my side.

## How Would I Calculate this? Per install cost?

[ Edited ]September 2016 - last edited September 2016

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Hi Guys,

Bidding $11,90 per install would be exceptionally high. This is the funnel:

**install (100%) ---> metric a (14%) ---> metric b (30%) ----> metric c (50%)**

Metric C ........................... is worth $25 for you

Metric B ........................... $25*0.5 = $12.50

Metric A ........................... $12.50*0.3 = $3.75

Install .............................. $3.75*0.14 ** = $0.53**

Bidding $0.53 per install would sound much more realistic.

Best,

Lakatos