Know your metric
Importance of
Cost Per Engagement
Focus on Engagement
CPE allows advertisers to focus spending on user engagement rather than just views, ensuring that marketing budgets are used more effectively for engaging potential customers.
Performance Indicator
It serves as a key performance indicator of how compelling and relevant an advertisement is to the targeted audience.
Budget Optimization
By monitoring CPE, companies can optimize their advertising budgets, focusing on the most cost-effective strategies and channels.
Drawbacks of
Cost Per Engagement
Variable Definition of Engagement
The definition of engagement can vary (e.g., clicks, likes, shares), sometimes making it difficult to consistently measure and compare CPE across campaigns.
Higher Costs for High Engagement
Campaigns designed to maximize engagement can sometimes result in higher costs per engagement, particularly if targeting is not optimized.
Not Always Linked to Conversions
Engagements do not always lead to conversions, meaning that low CPE might not necessarily translate into high revenue or ROI.
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