Cost per engagement
Encyclopedia
The term Cost Per Engagement was originated in late 2006 by Highedge, Inc., the company that developed the Brickfish social media advertising network. Highedge, Inc. owns the Cost Per Engagement trademark. Cost Per Engagement is the online advertising
pricing structure that was used to launch the latest Fatboy Slim
album.
Differing from cost per impression
or click through rate models, a Cost Per Engagement model means advertising impressions are free and advertisers pay only when a user engages with their ad unit. Engagement is defined as a user interacting with an ad in any number of ways, including playing a game, taking a poll, rolling over an ad unit for a specified amount of time or taking a product tour.
Cost Per Engagement brings a measure of performance to online advertising. Ads are served for free, and advertisers pay only when a user engages with their brand content. The approach has given advertisers a choice between quantity and quality.
This technique may be applied to ad formats including video
and rich media, for example, in web banners as invitations to view longer-form branded content
such as videos, games or other interactive experiences such as widgets. An ad unit offering Cost Per Engagement appears like standard display ads with a few seconds of preview video. Users mouse over the ads to display a Flash
window that shows the full clip without forcing users to leave the page.
- Cost Per Lead
(lead usually meaning a free registration), CPS - Cost Per Sale and CPM/CPI
– Cost Per Impression
, which is used to measure the effectiveness of advertising inventory sold (by the publisher) via a CPC, CPA
, or CPT basis.
These structures are collectively referred to as CPA
- Cost per Action
, which is an online advertising pricing model, where the advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement. Cost Per Engagement could be considered a sub-set of CPA in that the advertiser is paying specifically when a consumer engages with an ad.
Today it is very common for advertisers to buy online inventory based on impression, spending a set amount per thousand delivered views—what’s known as CPM
.
placements, like search, to brand units as brands only pay when an action is taken. Despite more brand dollars moving from traditional media, pricing for Internet ads has remained heavily weighted toward performance metrics like Cost Per Click (CPC). According to the Interactive Advertising Bureau
(IAB), 50 percent of deals in the first half of 2007 were performance priced, part of a steady increase compared to CPM pricing.
By placing ads
where users are most likely to respond, the advertiser passes the risk onto the ad network as the advertiser is charged only for interactions.
Cost Per Engagement is a registered trademark of Highedge, Inc ("intent to use" application date: 10/2006, trademark issued: 12/2007).
Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide Web to deliver marketing messages to attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, blogs, Rich Media Ads, Social network advertising, interstitial...
pricing structure that was used to launch the latest Fatboy Slim
Fatboy Slim
Norman Quentin Cook better known by his former stage name Fatboy Slim, is a British DJ, electronic dance music musician, and record producer. He is a pioneer of the big beat genre that achieved mainstream popularity in the 1990s...
album.
Differing from cost per impression
Cost Per Impression
Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...
or click through rate models, a Cost Per Engagement model means advertising impressions are free and advertisers pay only when a user engages with their ad unit. Engagement is defined as a user interacting with an ad in any number of ways, including playing a game, taking a poll, rolling over an ad unit for a specified amount of time or taking a product tour.
Cost Per Engagement brings a measure of performance to online advertising. Ads are served for free, and advertisers pay only when a user engages with their brand content. The approach has given advertisers a choice between quantity and quality.
This technique may be applied to ad formats including video
Video
Video is the technology of electronically capturing, recording, processing, storing, transmitting, and reconstructing a sequence of still images representing scenes in motion.- History :...
and rich media, for example, in web banners as invitations to view longer-form branded content
Branded content
Branded content is a relatively new form of advertising medium that blurs conventional distinctions between what constitutes advertising and what constitutes entertainment. Branded content is essentially a fusion of the two into one product intended to be distributed as entertainment content,...
such as videos, games or other interactive experiences such as widgets. An ad unit offering Cost Per Engagement appears like standard display ads with a few seconds of preview video. Users mouse over the ads to display a Flash
Adobe Flash
Adobe Flash is a multimedia platform used to add animation, video, and interactivity to web pages. Flash is frequently used for advertisements, games and flash animations for broadcast...
window that shows the full clip without forcing users to leave the page.
Other Advertising Pricing Models
Other advertising pricing structures include CPC- Cost Per Click, CPLCost per Lead
Cost Per Lead or CPL is an online advertising pricing model, where the advertiser pays for an explicit sign-up from an interested consumer interested in the advertiser offer....
- Cost Per Lead
Cost per Lead
Cost Per Lead or CPL is an online advertising pricing model, where the advertiser pays for an explicit sign-up from an interested consumer interested in the advertiser offer....
(lead usually meaning a free registration), CPS - Cost Per Sale and CPM/CPI
Cost Per Impression
Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...
– Cost Per Impression
Cost Per Impression
Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...
, which is used to measure the effectiveness of advertising inventory sold (by the publisher) via a CPC, CPA
Cost Per Action
Cost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....
, or CPT basis.
These structures are collectively referred to as CPA
Cost Per Action
Cost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....
- Cost per Action
Cost Per Action
Cost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....
, which is an online advertising pricing model, where the advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement. Cost Per Engagement could be considered a sub-set of CPA in that the advertiser is paying specifically when a consumer engages with an ad.
Today it is very common for advertisers to buy online inventory based on impression, spending a set amount per thousand delivered views—what’s known as CPM
Cost Per Impression
Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...
.
History
The decision to price ad units only when users take action is meant to bring the accountability of online direct responseDirect response marketing
Direct-response marketing is a form of marketing designed to solicit a direct response which is specific and quantifiable. The delivery of the response is direct between the viewer and the advertiser, that is, the customer responds to the marketer directly...
placements, like search, to brand units as brands only pay when an action is taken. Despite more brand dollars moving from traditional media, pricing for Internet ads has remained heavily weighted toward performance metrics like Cost Per Click (CPC). According to the Interactive Advertising Bureau
Interactive Advertising Bureau
The Interactive Advertising Bureau is an advertising business organization that develops industry standards, conducts research, and provides legal support for the online advertising industry. The organization represents a large number of the most prominent media outlets in the United...
(IAB), 50 percent of deals in the first half of 2007 were performance priced, part of a steady increase compared to CPM pricing.
By placing ads
ADS
ADS or Ads may refer to:In computing:* Advanced Design System, an EDA tool from Agilent EEsof EDA* Advantage Database Server, a Relational Database Management System* Alternate data stream, a filesystem fork in Microsoft NTFS...
where users are most likely to respond, the advertiser passes the risk onto the ad network as the advertiser is charged only for interactions.
Cost Per Engagement is a registered trademark of Highedge, Inc ("intent to use" application date: 10/2006, trademark issued: 12/2007).
See also
- CTR - Click-Through Rate
- CPMCost Per ImpressionCost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...
or CPICost Per ImpressionCost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...
- Cost Per ImpressionCost Per ImpressionCost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,... - CPTCost Per ImpressionCost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...
- Cost Per ThousandCost Per ImpressionCost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,... - PPCPay per clickPay per click is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market...
- Pay per clickPay per clickPay per click is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market... - CPA- Cost Per ActionCost Per ActionCost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....
- CPCCPC- Organizations :* Confirmation Preperation Class* California Preparatory College* Canadian Parachute Centre* Canadian Paralympic Committee* Center for Plant Conservation* Children's Psychiatric Center, Monmouth County, NJ USA* Climate Prediction Center...
- Cost Per Click - Compensation methodsCompensation methodsCompensation methods , Pricing models and business models used for the different types of internet marketing, including affiliate marketing, contextual advertising, search engine marketing and display advertising.-Predominant compensation methods in affiliate marketing:The following models...
- Google AdsenseAdSenseGoogle AdSense which is a program run by Google Inc. allows publishers in the Google Network of content sites to automatically serve text, image, video, and rich media adverts that are targeted to site content and audience. These adverts are administered, sorted, and maintained by Google, and they...
- Performance-Based AdvertisingPerformance-based advertisingWith performance-based advertising, the advertiser pays only for measurable results.With other forms of advertising they pay regardless of results....