Cost per engagement (CPE) is a metric used in digital advertising that measures the cost incurred for each user engagement with an ad, such as clicks, video views, or social media interactions.

Significance and uses of Cost Per Engagement

Cost per engagement helps advertisers assess the effectiveness of their ad campaigns by understanding the expense associated with each user interaction. It aids in optimizing campaign budgets and evaluating the return on investment (ROI) of specific engagement actions.

Example of Cost Per Engagement

An advertiser runs a campaign where users can click to install an app. Cost per engagement calculates the cost incurred for each app installation generated by the campaign, providing insights into the efficiency and cost-effectiveness of the campaign.