A digital advertising metric that measures the cost an advertiser pays for each user interaction (engagement) with an ad. Depending on the advertising platform, engagements can include clicks, likes, shares, comments, video views, or other predefined interactions.
The formula for CPE is:
Loading formula...Where:
- Total Cost of the Campaign is the total amount spent on the advertisement.
- Total Number of Engagements is the total count of user interactions that qualify as engagements.
This metric helps advertisers evaluate the efficiency of their campaign in driving user interactions and optimize their advertising budget accordingly.