Pay per Engagement

Pay per Engagement, also referred to as Cost per Engagement, is a pricing model that is based on a predefined engagement metric. This metric can be any kind of action that the advertiser wants the user to execute e.g. “get to level 5” within a mobile game. In this example the advertiser would only have to pay when a user is downloading the app and at least reached level 5 within the app.

This pricing model is very suitable for all advertisers that want to generate high-quality users. Since the engagement of the user with the app is a lot more intense in this form of advertising, these users got a way higher value for the advertiser than other users who just download and install the app. Therefore CPE is usually priced much higher than CPI campaigns.

Accordingly the CPE pricing model is expected to generate only users that have a much higher Customer-Lifetime-Values (CLTV) than an average user generated by CPI or CPC campaigns. However since pricing for CPE campaigns is much higher on a per generated user basis, it is not a given fact that CPE campaigns are more economical than CPI or CPC campaigns.