What is CPE? How to measure and improve CPE
What is CPE? What is the role of CPE in a marketing campaign? How to measure and improve CPE? What Digital Marketing metrics should we keep in mind? Let’s find the answer with CleverAds in the article below.
1. What is CPE?
Cost Per Engagement) is the cost advertisers pay when the target audience interacts with the ad. This is a type of indicator in Digital Marketing that shows the effectiveness of advertising.
Interaction is understood as any behaviour affecting an ad while running. Some exchanges can include: expressing feelings, clicking on photos, commenting, reading comments, expressing feelings about comments, sharing, pressing the pause button, clicking links, clicking view page, page report, etc.
2. What is the role of the CPE?
CPE shows the effectiveness of a Marketing campaign through engagement from viewers.
So it shows how many potential customers are interested in the product/service of the business (except for a few cases of mistakenly clicking).
CPE helps businesses identify and target their customer groups more accurately.
Thanks to this feature, CPE is very useful in helping you select ads and posts with high engagement, content that attracts viewers.
From there, marketers can devise appropriate strategies to target the most effective target customers.
3. What is CPE calculation?
The CPE index is calculated by:
CPE = Total cost / Total measured interactions
4. What is the standard CPE level?
CPE levels can vary depending on the following:
- Industry
- Communication
- Target audience
- Interaction type measurement
There’s no one standard CPE, but to find the right CPE to target a campaign, marketers can:
- References from previous campaigns of the company, competitors
- Get advice from the agency
- Based on campaign goals and budget
- Based on the general level of the industry, platform, target audience, interaction type, etc.
5. How to improve CPE
To improve this metric, advertisers can go in 2 directions:
One is to increase engagement. For high engagement, ads need to:
- Hit the reader’s insight
- Attractive, exciting and trend-catching content
- Encourage interaction (likes, comments, shares, etc.)
- Effective CTAs
Read more: What is a CTA? How to use CTA effectively?
The second is cost reduction. To reduce costs and still get engagement, you need the following:
- A/B testing to target the most suitable target audience
Note: At first glance, increasing the cheapest interactions seems reasonable. However, marketers need to identify and choose which interactions bring the most profit to the business.
6. Other effective metrics in Digital Marketing
In addition to CPE, marketers can use the following metrics to measure effectiveness depending on the purpose of the campaign:
Cost-per-acquisition (CPA)
The amount of money a brand has to spend to acquire a new customer. It could be communication costs, cost per sale to a new customer, cost per quote or consultation.
Cost-per-click (CPC)
The amount a brand spends per click from a referring site to a landing page, usually from a search engine (Google, Bing, etc.)
Cost-per-targeted mille (CPTM)
The amount the brand has to spend per thousand goals for an ad. See Targeting.
Cost per thousand ad impressions (Cost per thousand – CPM)
The amount the brand has to spend for every 1000 ad impressions
The amount the brand has to spend for every 1000 ad impressions
7. Improve CPE and other advertising metrics with CleverAds – An expert in advertising
CleverAds is the first Official Google Premium Partner, First Facebook Authorized Partner and a TikTok Partner in Vietnam.
With nearly 15 years of experience working for many large and small brands in Vietnam, such as Vietnam Airlines, Vin Group, etc., to mid-sized and small companies, CleverAds specializes in consulting and providing solutions to improve advertising results suitable for business.
