CPE - Cost Per Engagement
CPE (Cost Per Engagement) is a metric for online or social media advertising that reflects the advertising cost relative to the number of “engagements” performed by users. Here, “engagement” generally refers to actions or interactions taken by users who have seen the ad, which may include:
Clicks
on an ad banner or link
Likes, shares, comments
on social media
Video views
(watching beyond a certain duration)
Form submissions, account registrations
, etc.
CPE is essentially the cost per individual engagement, calculated as:
CPE = Total Ad Spend ÷ Number of Engagements
Key Points and Use Cases of CPE
Paying Only for User Actions
Rather than just paying for impressions (when the ad is displayed), advertisers often pay only when users take a specific action.
It’s effective when you want to control ad spending more closely aligned with “results.”
Well-Suited to Social Media and Native Ads
On platforms like Twitter, Facebook, Instagram, etc., engagements can include likes, retweets, comments, follows, and more.
Some ad formats also count actions such as viewing a video or saving/sharing a post as engagements.
Measuring Cost-Effectiveness
If the cost per engagement is too high, you may need to review ad creatives, targeting, or distribution channels.
If you’re getting a reasonable cost for a solid number of actions, your ad campaign can be considered efficient.
Applicable for Branding and Awareness Efforts
Engagement can serve as an indicator of brand awareness and user involvement, even if it doesn’t directly translate to purchases or inquiries.
Especially relevant for campaigns seeking viral reach or user interaction on social media.
Optimizing CPE
Enhance Targeting Precision
Use interest targeting, behavioral data, demographics, and geolocation to reach highly motivated audiences.
A broad target might lead to unnecessary impressions or clicks, raising your CPE.
Compelling Creatives and Copy
Provide visuals and copy that motivate users to engage.
On social media, short, clear messages and impactful images or video usually work best.
Optimize Placement and Timing
Schedule ads when your audience is most active, or tailor creatives to match the user’s browsing device.
Make full use of your ad platform’s audience targeting and scheduling features.
Testing and the PDCA Cycle
Compare multiple versions of creatives or targeting through A/B testing to find the lowest CPE.
Analyze performance regularly and refine your strategy to maintain a low CPE while maximizing engagement.
Conclusion
CPE (Cost Per Engagement) measures the cost incurred per user action in an advertising campaign. It:
Is frequently used in social media and video ads
Encompasses various types of engagements (clicks, likes, shares, comments, etc.)
Enables more “results-oriented” cost control
By continually refining your ad creatives, targeting accuracy, and channel selection, you can reduce CPE while encouraging more user actions, ultimately boosting your campaign effectiveness.