What is Cost Per Engagement (CPE)?
Cost Per Engagement (CPE) is an advertising pricing model where advertisers are only charged when users actively engage with their campaign. "Engagement" refers to any interaction a consumer has with the advertisement, such as pausing a video, taking a survey, or sharing a post on social media.
CPE provides a low-risk approach for advertisers, as they only pay for ads that result in user engagement. Advertisers can choose between models that charge for every engagement or only meaningful engagements like clicking through to the website.
Why is CPE important?
CPE is important for app marketers as it allows them to pay for user engagement in specific actions within their app, contributing to the overall success of mobile user acquisition campaigns. It ensures that advertisers are getting something in return for their ad spend and maximizing their return on investment.
The CPE model offers several benefits for app marketers. It is a low-risk strategy as advertisers only incur costs when users engage with the specified event. This helps ensure ad campaigns are successful and advertisers are paying for meaningful user interactions.
CPE campaigns are effective in driving deeper funnel engagements, such as completing key game levels or specific in-app milestones. They work well in mobile games with rewarded ads, where users are offered virtual currency or rewards for engagement.
App advertisers can also target multiple events in one ad campaign using Multi-Reward Engagements. This format encourages deeper user engagement by providing progressively greater rewards for reaching different milestones.
How do you calculate CPE?
To calculate CPE, divide advertising costs for a specific marketing campaign by the number of engagements generated. The formula is: Advertising Costs / Number of Engagements = CPE. The ideal CPE depends on factors like the target audience and the value of each user to the company. App marketers should aim for a CPE that keeps their brand profitable.