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Cost Per Engagement (CPE)

A performance-based pricing model where advertisers pay only when users complete specific in-app actions, ensuring higher quality user acquisition and meaningful engagement.

What Is Cost Per Engagement (CPE)?

Cost Per Engagement (CPE) is a pricing model commonly used in mobile user acquisition campaigns. In this model, an advertiser pays only when a user completes a specific engagement action within an app after installation.

Instead of paying for installs or clicks alone, CPE focuses on post-install activity, ensuring that users actively interact with the app.

How CPE Campaigns Work

In a CPE campaign, the app advertiser defines a clear in-app event that represents meaningful engagement. Payment is triggered only when a user reaches or completes that predefined event.

This approach allows advertisers to prioritize user quality rather than volume.

Reaching Specific Levels

Users must reach a specific level within a game, demonstrating genuine interest and time investment in the app experience.

Earning Virtual Currency

Completing actions to earn a certain number of points or virtual currency, indicating active participation within the app.

Registration & Onboarding

Completing user registration, profile setup, or full onboarding processes that show commitment to using the app.

Why CPE Payouts Are Higher

CPE campaigns generally offer higher payouts compared to install-based models. This is because users must invest more time and effort to complete the engagement requirement.

Higher engagement requirements often result in:

  • Better user retention
  • Increased lifetime value
  • Stronger overall app performance

Benefits of Cost Per Engagement

Key advantages of using the CPE model include:

  • Focus on high-quality users
  • Reduced risk of low-value installs
  • Better alignment with long-term app goals
  • Clear measurement of user engagement

CPE in Mobile Advertising

Cost Per Engagement is widely used by app advertisers who want to ensure that acquired users are actively interacting with their app. It is especially effective for games and apps where user activity directly impacts revenue and retention.

Conclusion

Cost Per Engagement (CPE) is a performance-based advertising model that rewards meaningful user interaction rather than simple installs. By focusing on post-install engagement, CPE helps advertisers acquire higher-quality users who are more likely to remain active within the app.

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