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 directly tied to the campaign.
To calculate the cost per engagement, divide the total cost of the campaign by the total number of engagements.
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