Where is it used?

CPE is often employed by brands when the primary goal of an influencer marketing campaign is to drive audience interaction and engagement with the brand or its products. It is a way to directly tie the cost of the campaign to the level of engagement generated by the influencer's content.

When to use it?

This model is particularly suitable for campaigns focused on increasing brand awareness, fostering community interaction, or generating buzz around a product launch. It allows brands to pay based on the actual interest and interaction their message is receiving from the target audience.

How to use it?

To implement a CPE model, brands and influencers need to agree on what constitutes an engagement and the price per engagement. Tracking mechanisms are then used to monitor the total number of engagements received on the influencer's content related to the campaign. The total cost is calculated by multiplying the total engagements by the agreed-upon price per engagement.

Why do we need it?

Using a CPE model helps brands to understand the cost-effectiveness of their influencer marketing spend in terms of generating meaningful interactions with their target audience. It ensures that the brand is paying for actual engagement, rather than just impressions or reach, which may not always translate into active interest or interaction.