CPE drives comms and value

The cost per engagement model Michael Nutley discusses (MW 26 August) is designed to drive ROI value for advertisers in terms of only paying the media partner based on user interactions with any branded content hub.

However, there is an incremental value, over and above CPE, in the form of a communications byproduct.

The nature of CPE means media partners are proactive in driving scale and interactions to a branded content hub as this is the only way they are monetarily rewarded.

For example, it encourages them to run a variety of digital platforms, such as PPC and SEO, to drive scale to the branded hub.

Media partners who have access to a large portfolio of sites within their network can run display advertising to drive scale to the content hub and therefore earn more of the CPE budget. The byproduct for the advertiser here is that their display ads are run across a variety of sites thus driving incremental reach that isn’t paid for on a CPM basis. Even if users don’t click on the ads to reach the content hub, the advertisers have experienced added value exposure.

The same goes for any offline communications that the media partner decides to run to drive scale to the branded hub – a press or newspaper ad with a call to action to visit the site.

Because CPE is a strong model that encourages the media partner to deliver a multiplatform comms approach that drives value over and above engagement, it is attractive to advertisers.

Erfan Djazmi
Digital account manager, Carat

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