CPE or Cost Per Engagement is a kind of advertising price structure popular on the Internet in which advertising impressions are free for the advertisers. In fact, advertisers will have to pay only when users engage with the specific ad, which can be achieved in several ways.
CPE in AdSense
It should be noted here that most of the companies do not follow this marketing metrics as it is not profitable for them as they earn revenues based on the CPA or CPM model of advertising.
What does user engagement mean?
Basically, the advertisers would have to pay when a user engages itself with the particular ad but online engagement can mean a lot of things.
You should keep in mind here that user engagement in CPE model can be considered meaningful in different ways which include mouse roll-overs, taking polls, playing a game and even going for the final product tour.
Whenever a user interacts with the ad in any way, the advertiser will pay for it on per engagement basis.
Considerations for facing CPE model
Apart from going for the current user–size retention, the advertisers will target for the interest of any new user who is engaged with the ads.
First of all, you should be sure for what thing you are paying for and whether you have targeted the right class of audience through your ads! On the other hand, you must also ensure that targeting the wrong audience will hardly impact the bottom line of CPE.
Every action of payment on engagement basis should be capable of influencing the perception of users so that relevant brand effectiveness can be easily improved.