Ace the IAB Digital Advertising Exam 2026 – Master the Interactive Ad Game!

Cost-per-Engagement (CPE) is specifically calculated by dividing the total cost of an advertising campaign by the number of engagements that the campaign achieves. Engagement in this context refers to any interaction a user has with an advertisement, such as likes, shares, comments, or any other meaningful interaction that signifies user involvement beyond just viewing.

Using this formula, the calculation focuses on how much advertisers are spending for each instance of user engagement, allowing them to assess the efficiency and effectiveness of their ad spending. This metric is pivotal for campaigns aiming to foster deeper connections with consumers rather than merely driving clicks or impressions, as it emphasizes the value of interactions that signify user interest and response.

This understanding of CPE helps marketers optimize their strategies to enhance audience interaction and create more engaging content.