CPE (Cost Per Engagement) is a performance pricing model where advertisers pay only when users complete specific in-app actions. It offers a middle ground between CPI (install focus) and CPA (purchase focus).
What is CPE?
With CPE, you define an engagement event—completing tutorial, reaching level 5, watching a video, adding to cart—and only pay when users complete that action after installing.
Common CPE Events
- Gaming: Complete tutorial, reach level X, first session 10+ minutes
- E-commerce: View product, add to cart, create wishlist
- Social: Create profile, first post, add friend
- Utility: Complete core action, enable notifications
💰 CPE Economics
Typical CPE rates range from $1-10 for simple events (tutorial completion) to $5-30 for deeper events (level 10, account creation). Pricing depends on event difficulty and advertiser category.
CPE vs Other Models
CPE vs CPI
- CPI: Pay for installs regardless of quality
- CPE: Pay for engaged users who take action
- CPE advantage: Higher quality users, less fraud risk
CPE vs CPA
- CPA: Pay for purchases/subscriptions (harder events)
- CPE: Pay for engagement events (easier events)
- CPE advantage: More volume, easier to scale
When to Use CPE
- Your funnel has clear early engagement indicators
- CPI campaigns deliver low-quality users
- CPA events are too rare for scale
- You want to filter for intent without requiring purchase
"CPE is ideal when you know that users who complete X action have significantly higher LTV than those who don't—and X happens more frequently than a purchase."
Choosing the Right CPE Event
Event Selection Criteria
- Predictive: Event correlates with long-term value
- Achievable: 20-50% of installers should complete it
- Timely: Happens within first 24-48 hours
- Fraud-resistant: Hard to fake with bots
Testing Event Correlation
- Analyze retention by event completion
- Compare LTV of completers vs non-completers
- Find the event with highest predictive value
Optimizing CPE Campaigns
- Set CPE bids based on event-to-LTV ratio
- Monitor event completion rates by source
- Exclude low-performing placements
- Test different event definitions
- Watch for fraud patterns (instant completions)
Run CPE Campaigns
ClicksFlyer offers flexible CPE pricing across gaming, e-commerce, and app categories.
Get StartedCPE is a powerful tool for performance marketers seeking quality at scale. Choose your event wisely, and you'll acquire engaged users more efficiently than pure CPI campaigns.