- What is cost per engagement?
- How is it calculated?
- Why is cost of engagement important?
- How to improve your cost per engagement
When a brand reviews a creator's profile, there are a number of different metrics they will evaluate. Including, but not limited to:
- Follower count
- Engagement rate
- Audience demographics
- Deliverable prices
- Cost per engagement
What does cost per engagement mean?
Cost per engagement (CPE) is a metric used to determine how much (on average) a brand would have to spend per engagement (like or comment).
How is CPE calculated on #paid?
CPE is calculated on #paid by dividing a brand's spend by the number of engagements. For example, if a creator charges $200 for an Instagram Post deliverable and the post receives 1,000 points of engagement (likes and comments) then the CPE is $0.20. On #paid, we take the average Instagram CPE of the last 12 posts to generate the CPE that gets surfaced to a brand.
Why is CPE important to a brand?
Analyzing CPE prior to investing in content can help brands ensure that they are maximizing their marketing dollars.
For example, Brand A is about to launch an organic creator marketing collaboration on #paid. Brand A has two creators with similar aesthetics, prices, and follower account but their CPE metrics was quite different:
- Creator #1: $2.0 CPE
- Creator #2: $0.2 CPE
Which creator do you think will yield a higher return on investment for the brand? Likely, Creator #2 because the CPE is substantially less than creator #1.
What is the average CPE on #paid?
Great question! Every creator niche and category is going to vary. With that said, our team did an analysis on all the creators contracted in 2021 and found that the average CPE across all creator niches and categories was $1.40 on #paid.
Where can I view my CPE on #paid?
Once you have logged into your #paid account, click on the drop-down in the upper right-hand corner and select profile. Once you are on your profile page in #paid, you will be able to view important account metrics including your CPE.
How to Improve your CPE
Understand your Audience
Engage with your Followers
Create Mixed Content