Enter the total cost spent on the campaign and the total number of engagements to determine the cost per engagement (CPE).
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The following formula is used to calculate a cost per engagement.
CPE = TC / TE
- Where CPE is the cost per engagement ($/engagement)
- TC is the total cost of the campaign ($)
- TE is the total number of engagements direcly tied to the campaign.
What is CPE?
CPE stands for cost per engagement. This is a term most often used in digital marketing to describe the cost it takes to receive one engagement on a marketing campaign.
What counts as an engagement will depend on the platform being used for the advertising campaign, but in general, they included clicks/likes/shares/etc.
How to calculate CPE?
- First, determine the total cost of the advertising campaign.
For this example, a company spends a total of $10,000.00 on a campaign.
- Next, determine the total number of engagements that result directly from the campaign.
In this case, the advertising was successful and yield 3,000 engagements.
- Finally, calculate the cost per engagement (CPE).
Using the formula above the CPE is calculated to be:
CPE = TC / TE
CPE = $10,000/3,000
CPE = $3.33/engagement