## Average CPE (Cost Per Engagement)

Contents:

- Average CPE (Cost Per Engagement)

- How Engagements Work

- Avg. Cost Per Engagement

- Max Cost Per Engagement

- Other Relevant Metrics

## Average CPE (Cost Per Engagement)

**Quick Description = This is the average cost you have paid for an engagement**

**Calculation: Total cost of all engagements / No. of engagements**

**Referred to as = Avg. CPE**

Represented by a currency value, CPE averages out the cost of all engagements for any given period of time.

## How Engagements Work

An engagement is defined as expanding an engagement campaign ad, which is done by either clicking on it or hovering over it with the mouse for two secondsâ€¦ It is at this point that Google will charge you.

This ad format, and hence this metric, only applies to campaigns using the Google Display Network (GDN). Engagements are the primary metric and the basis for bidding when using any of the following ad formats:

- YouTube Masthead Lightbox
- Cross Device Ads
- Lightbox ads linked to Google Merchant Centre (product engagement ads)

## Avg. Cost Per Engagement

Average CPE (Avg. CPE) is calculated in the same way as CPC (Cost Per Click), by dividing the total cost / ad spend on your engagement ads by the number of engagements that they received. For example, if we assume a Lightbox ad received 500 engagements at a cost of $1,000 we would calculate Avg. CPE like this:

$1,000 / 500 = $2 Avg. CPE

In this example you will have paid, on average $2 for an expansion of / engagement with your Lightbox ad.

You can easily calculate the average CPE across multiple campaigns, ad groups and ads by following this mathematical rule; Cost / Engagements. Reducing the Avg. CPE allows budgets to go further allowing for more engagements.

## Max Cost Per Engagement

The maximum cost per engagement is the bidding amount that you define for a targeting method and represents the maximum you are prepared to pay for an engagement. The actual amount you pay will vary across targeting methods, placements, ads, etc. and is influenced by historical performance data.

## Other Relevant Metrics

You may also be interested in reading some of the following guides relevant to Cost Per Engagement from our metrics knowledge base:

__Engagement Rate____Engagements____Lightbox Ads____Engagement Ads____Gmail Campaigns__