Cost per engagement (also known as CPE or pay per engagement, PPE) is a pricing model in digital advertising where advertisers pay every time a user takes action within their app.
This model should not be confused with the cost per action model (CPA). In the CPA option, advertisers pay for any kind of action, usually outside of the advertiser’s app. In cost per engagement, they pay for actions within the app: reaching some level in the game, buying a subscription, creating an account, etc. Consequently, advertisers pay for more interested users than in CPA.
The CPE model is very popular among advertisers. They are sure to receive an install and even some activity. Unlike the cost per impression model, it gives advertisers the opportunity to surely receive some kind of result. It is a lower financial risk and does not require extensive research about target audiences and relevant channels.
