Cost Per Engagement (CPE)

Cost Per Engagement (CPE) measures the cost incurred for each user interaction with a mobile ad or content.

Why it matters

Helps optimize marketing spend by focusing on user interactions.
Provides insights into the effectiveness of ad content.

How to measure

Divide total ad spend by the number of engagements.
Typically measured over campaign duration.

Details

CPE is a critical metric for mobile engineers and growth teams as it focuses on the quality of user interactions rather than sheer volume. In the mobile context, engagements can include clicks, shares, comments, or any interaction that signifies user interest. By analyzing CPE, teams can refine their ad strategies to prioritize platforms and content that yield meaningful user interactions.

For mobile apps, CPE can help determine which ad formats and placements are most effective. This is particularly useful in environments where user attention is fragmented across multiple devices and platforms. Understanding CPE allows teams to allocate budgets more efficiently, ensuring that spending aligns with user engagement goals.

Examples & formulas

For instance, if a campaign costs $1000 and generates 500 engagements, the CPE would be $2 per engagement.

CPE = Total Ad Spend / Total Engagements

Common mistakes

Overlooking engagement quality; not all interactions are equally valuable.
Ignoring platform-specific engagement metrics, leading to skewed CPE calculations.