Cost Per Engagement (CPE) is a metric that measures the cost incurred for each meaningful interaction between a user and an advertisement or piece of content. Engagements can include actions such as likes, shares, comments, or video views. By dividing the total campaign cost by the number of engagements, marketers can determine how effectively their budget is generating interactions that signal audience interest and involvement.
This metric is particularly useful for campaigns focused on brand awareness and community building rather than direct conversions. A lower CPE indicates that a campaign is successfully engaging its target audience in a cost-effective manner. It also provides insights into the creative and messaging strategies that resonate most with viewers, helping marketers fine-tune their approach for better results.
Effective management of CPE involves continuous monitoring and optimization of ad creative, targeting, and bidding strategies. By understanding what drives engagement, businesses can adapt their campaigns to maximize audience interactions and improve overall performance. Ultimately, CPE is a key performance indicator that informs strategic decisions, ensuring that marketing efforts generate value beyond simple clicks or impressions.