AdParlor Academy Paid Digital Glossary

Plain language explainers to help you keep up with the evolving digital landscape.

Cost Per Engagement (CPE)

What is CPE?

CPE stands for Cost Per Engagement, a metric used in digital advertising to measure the cost incurred by advertisers for each instance of user engagement with an ad or sponsored content. Engagement can include actions such as clicks, likes, shares, comments, reactions, or other interactions depending on the advertising platform and campaign objectives. Don’t forget - video views count as engagements! Ensure you’re filtering these out for accurate ad unit comparisons.

How to measure CPE?

CPE is calculated by dividing the total advertising spend by the total number of engagements generated by the ad or content.

CPE = Total Advertising Spend / Total Engagements

Example: If an ad campaign costs $2,000 and generates 500 engagements, the CPE would be $4.

Why is CPE important to marketers?

CPE is important to marketers because it helps them assess the efficiency and effectiveness of their advertising campaigns in driving user engagement and interaction. By monitoring CPE, marketers can evaluate the cost-effectiveness of different ad formats, targeting strategies, and creative content, and optimize campaign performance to maximize engagement and ROI.

Who needs to know what CPE is:

  • Digital marketers
  • Content marketers
  • Email marketers
  • Paid search marketers
  • Social media marketers
  • Conversion rate optimizers
  • Web designers
  • Product managers
  • eCommerce businesses
  • SaaS companies
  • B2B companies
  • B2C / D2C companies

Use CPE in a sentence:

The marketing team analyzed the CPE of their social media ad campaign to determine the most cost-effective content formats and targeting strategies for driving user engagement and brand interaction.