What is CPE?
CPE (Cost per Engagement) is a pricing model used in user acquisition for mobile apps. In this model, app advertisers pay only when users complete specific post-install events they select.
The choice of these events differs based on the advertisers’ goals. Some examples include:
- finishing the app tutorial
- reaching a specific level
- spending 10 minutes in the app
How to calculate CPE?
To calculate CPE, divide the total advertising cost by the number of completed engagements.
Let’s say you want to target users who will spend 7 minutes in your app on the first day. If you invest $8000 in your CPE campaign and this leads to 500 goal completions, your CPE is $16.
CPE vs CPA
The CPE model shares similarities with the CPA (Cost per Action) model, but they are different. Unlike CPA, which usually revolves around purchasing events, CPE prioritizes engagement events without involving purchases.
CPE Campaigns
CPE campaigns most commonly appear in rewarded advertising — a form of user acquisition where users are encouraged to complete goal engagements to earn rewards.
These campaigns typically reach users through offerwall advertising, a specific type of rewarded user acquisition.
Offerwall ads provide users with a list of actions they can take to earn certain rewards. Since they are completely opt-in and rewarding, these ads usually drive high-quality users, showing high ROAS and retention rates.
If you want to acquire quality users at scale, get started with MyChips, a pioneering advertising solution based on the CPE model.