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How Would I Calculate this? Per install cost?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

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%)
 

1 Expert replyverified_user

How Would I Calculate this? Per install cost?

Collaborator ✭ ☆ ☆
# 2
Collaborator ✭ ☆ ☆

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.

 

Regards, Nik
LinkedIn  |   @nikhilparachure | My Blog

How Would I Calculate this? Per install cost?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

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

 

How Would I Calculate this? Per install cost?

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

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 ]
Top Contributor
# 5
Top Contributor

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