Cost per Engagement (CPE)

What Is Cost per Engagement (CPE)?

Cost per Engagement (CPE) is a pricing model in which advertisers pay for specific interactions with their ads, such as clicks, shares, comments, or other forms of engagement. CPE measures the cost-effectiveness of ads in driving user interaction.

Examples of CPE

• Social Shares: An advertiser pays only when users share their native ad content on social media.
• Video Interactions: An advertiser pays when a user clicks to watch a native video ad.

Key Points about CPE

• CPE allows advertisers to focus on driving meaningful interactions rather than just impressions or clicks.
• It is a performance-based model, ensuring that advertisers only pay when users actively engage with the content.
• CPE can be more cost-effective for engagement-focused campaigns, such as brand awareness or social media initiatives.

CPE Best Practices

• Define Engagement Metrics: Clearly define what constitutes an engagement for your campaign, whether it's a click, share, or comment.
• Optimize for Engagement: Create interactive and engaging ad content that encourages users to interact with it.
• Monitor Engagement Quality: Ensure that engagements are meaningful and relevant to your campaign goals, rather than just focusing on quantity.

Considerations

• Engagement Fraud: Monitor for low-quality or fraudulent engagements that may artificially inflate CPE performance.
• ROI Measurement: While CPE focuses on engagement, track the impact of engagements on overall campaign objectives, such as conversions.