What does CPE mean?
The CPE price is the price that gets paid when an ad is engaged with. An engagement can be anything from pausing or muting a video to submitting contact details. So depending on what the ad is about, these campaigns can pay either very poorly or very well.
For example, imagine you build an ad which can show three different cleaning products when swiped by a user, and then book an ad campaign with a $0.20 CPE for 100,000 engagements. This means that every swipe or click a user makes costs you $0.20 and in total you will owe $20,000 for the campaign.
CPE means Cost Per Engagement and is a strange combination of a CPC and CPA campaign (and not in fact a mega-romantic subsection of advertising). An engagement is a catch-all term which means any interaction with an ad, and therefore is a strange thing to be paying out on. The theory is that the biggest hurdle for advertisers is to get users to notice their ads in the first place, so if they are clicking on ads and taking any action at all, that is a positive.
Some advertisers are very careful with this sort of campaign, and will only pay for engagements with some sort of meaning (like playing a video). Others will pay for all engagements including pausing, muting or closing an ad.
CPE can also stand for Cost Per Expansion (on expandable ad campaigns), but this is really just a subset of Cost Per Engagement, as the CPE price is paid out on user expanding an ad in this case, which is a type of engagement.
The CPE equation is:
Click to enlarge
Cost Per Engagement = Amount Spent / Engagements
CPE can mean too many things to many people, so there isn’t really enough data that is comparable to average out. It’s usually not much however.
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