Cost per Engagement

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Cost per engagement Display/Video (CPE) is an advertising pricing model in which a buyer only pay for ads when users interact with their campaign. The term engagement for a display campaign usually when a user spends at least 15 seconds on a site or landing page.

Cost per engagement advertising is a low-risk way of ensuring ad costs produce results since both outcomes are beneficial to advertisers. Either the user engages with the ad, making the ad a success, or the user ignores the advertisement and the company does not have to pay.

Cost per engagement requires a pixel placement on the landing page and is calculated by dividing the total cost spent by the total measured engagements. Therefore: CPE = total cost spent / total measured engagements

Cost per engagement campaigns must start with 10 days CPM or CPC campaign which then can be converted into a CPE. The reason is that our teams need the data to reach the CPE goal. All Cost per Engagement campaigns require either a Managed Service or Co-Managed Service approach and must be approved for a 10 day trial campaign prior to any guaranteed longer term flight date and delivery.

Improved flexibility and creativity

  • Cost per engagement advertising increases creative output by helping advertisers become more attuned to market trends.

Engagement is a general term

  • Since the term engagement can mean a multitude of things, advertisers can choose to define it in their own ways, also making it easier to adapt to evolving advertising trends and platforms.

Increased engagement

  • Every interaction raises brand awareness, as well as the chances of the consumer reaching the campaign's end goal;

Improved budgeting

  • CPE advertising guarantees that marketing teams don't waste their entire budget on useless ads. Companies will only pay for ads that have produced some sort of proven, meaningful interaction. If customers don't engage, then advertisers don't pay, and their budget is preserved.