Engagement-Based Pricing

What Is Engagement-Based Pricing in Native Advertising?

Engagement-based pricing is an ad pricing model where native advertisers pay based on user engagement metrics (e.g., clicks, shares) rather than impressions.

Examples of Engagement-Based Pricing

• Cost-Per-Click (CPC): Paying for each click on a native ad.
• Cost-Per-Engagement (CPE): Paying only when users interact with an ad.
• Social Engagement Pricing: Paying for likes, shares, or comments on social platforms.

Key Points about Engagement-Based Pricing

• Enables advertisers to focus on active user engagement rather than visibility alone.
• Often leads to higher-quality interactions, improving ROI.
• Ideal for campaigns aimed at driving meaningful engagement with the content.

Engagement-Based Pricing Best Practices

• Use engagement-based pricing when targeting high-intent audiences.
• Track engagement metrics carefully to control costs and optimize spending.
• A/B test ad creatives to find the most engaging format and message.

Considerations

• Engagement-based models may lead to higher costs per action.
• Requires quality ad content to ensure engagement is achieved.
• Suitable for engagement-focused campaigns, but not always ideal for awareness.