Cost Per Engagement (CPE) is an increasingly popular advertising pricing model that calls for advertisers to only pay when users actively engage with an ad. Ads are served for free and an engagement is considered a high-quality action.
Examples of engagements: Likes, Clicks, Post Reactions, Shares, Photo Views, Video Views, Offer Claims, Widget Interactions.
The Cost Per Engagement statistic is displayed as a simple percentage. It is calculated by dividing the total budget amount by the total number of engagements.
- Total amount references the budget allocated to produce engagements
- Total engagements references the total number of interactions (explained above)
The CPE model that values engagement often translates to smart placements and interactions, which can emphasize brand engagement in ways that CPC and CPM simple aren’t programmed to do. And on the financial front CPE is paid only when there’s an engagement, as opposed to impression-based models.
If attention, brand awareness, and wide-spread interaction fit your strategy, then CPE is a recommended approach.
Carefully monitor this sort of campaign depending on the chosen channel. Several allow for engagements to be defined by the advertiser, so a video play can be selected over a video pause.
Understand the financial spectrum
Going for the cheapest engagements possible will result in bad leads. And that is ultimately what the engagement strategy entails – gathering qualified leads to start to be interested in you. Don't be afraid to increase the max CPE amount in the early days.
Crowdsource questions and answers
CPE is recommended for businesses with a difficult initial message that needs explanation. Often an engaged moderator and community can take a question further than you think.
Increase creative efforts
This is a metric based on valued on creating the most engaging experience possible, so the value added for your brand is much greater than other models. Make sure your team understands the importance of emotional impact when creating the story.
We Need to Look Beyond Clicks via Native Advertising Institute
Will Cost-Per Engagement Become a Go-To Metric? via AdExhanger