First of all let's figure out what are the keywords.
Keywords are words or phrases that users type in search on Google Play to find apps they need.
Keyword installs are installs by keyword (by which a user searches the app).
The benefit of keyword installs is that they have the ability to increase keyword ranks.
Most organic installs come from top positions for popular keywords. So, the more keyword installs your app gets per keyword, the higher it goes in ranks from which you will start getting more organics.
Keywords are more effective for apps, which already have enough installs

Campaign for keywords installs is a good way to combine a lot of different particular keywords and run it at the same time

Keywords promotion is 100% effective and after boosting with keyword installs your app will get higher in ranks, more visibility and more chances for users to find and download your app
It is not effective for new apps because usually they are not ranked for a lot of good keywords

If your app is not ranked for many keywords, it will be difficult to find any good keywords to promote (but you can always use ASO tools to help you with that)

Sometimes you can drop out of the keyword rank because of the changes in google algorithm
So, here's a conclusion:
Package id install is a direct install by a package id; keyword install is an install by keyword (by which a user searches the app). Keyword installs are more effective as they increase keyword ranks on Google Play. Developers order package id installs if they just want to have more installs in their statistics or start ranking for keywords if their app is new.

We recommend you keyword installs to boost your apps' rank!

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