Cost Per Engagement (CPE)

Definition of Cost Per Engagement (CPE)

The cost incurred each time a user engages with an advertisement, such as clicking or sharing.

Explanation of Cost Per Engagement (CPE)

Cost Per Engagement (CPE) is a metric used in digital marketing to measure the cost of user interactions with an ad or piece of content. Engagements can include actions such as clicks, likes, shares, comments, or any other form of interaction that indicates user interest. This pricing model charges advertisers based on the number of engagements rather than impressions or clicks alone. For example, if an advertiser spends $500 and receives 1,000 engagements, the CPE is $0.50 per engagement. CPE provides a more meaningful measure of ad effectiveness, as it reflects genuine user interest and engagement. By focusing on CPE, advertisers can optimize their campaigns to encourage more interactions and increase the overall impact of their marketing efforts. This metric helps in understanding the true value of content and ads, leading to more informed decisions about creative strategies and budget allocation.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.