Cost per Engagement
The amount of money spent on a digital marketing campaign divided by the number of engagements it generates.
Description
Cost per Engagement (CPE) is a key metric in digital marketing that helps businesses understand how much they are spending to get user interactions with their content. This can include likes, shares, comments, clicks, and other forms of engagement. By calculating CPE, companies can measure the effectiveness of their campaigns and make informed decisions to optimize their marketing strategies. This metric is particularly useful for social media campaigns where engagement is a primary goal. It provides a clearer picture of audience interaction compared to other metrics like Cost per Click (CPC) or Cost per Impression (CPM). Ultimately, a lower CPE indicates a more engaging and cost-effective campaign.
Examples
- A clothing brand runs a Facebook ad campaign and spends $500. The campaign receives 1,000 likes, 200 shares, and 300 comments. The total engagements amount to 1,500. Therefore, the CPE is $500/1,500 = $0.33 per engagement.
- A tech company launches a Twitter ad and spends $1,200. The ad generates 2,000 retweets, 1,000 likes, and 500 replies, totaling 3,500 engagements. The CPE in this case is $1,200/3,500 = approximately $0.34 per engagement.
Additional Information
- CPE can help identify which type of content resonates most with your audience.
- It is particularly useful for budget allocation in future campaigns to maximize engagement.