Facebook advertising has become an integral part of marketing strategies for businesses of all sizes. With over 2.9 billion monthly active users, Facebook provides an enormous opportunity to connect with target audiences. One of the key metrics used to measure Facebook ad performance is cost per engagement (CPE). But what exactly is the average cost per engagement on Facebook, and how can this data be used to optimize ad campaigns?
Defining Cost Per Engagement
Cost per engagement (CPE) measures the average cost to generate an engagement based on ad spend and engagements. An engagement on Facebook includes actions such as likes, comments, shares, event responses, and more. CPE is calculated by dividing total ad spend by total engagements:
CPE = Total Ad Spend / Total Engagements
Knowing your CPE allows you to gauge the effectiveness of your ads in generating desired social interactions. A lower CPE indicates your ads are producing engagements efficiently. Monitoring CPE over time can show how campaign changes or seasonal trends impact engagement costs. Comparing CPE across ad sets also highlights which audiences and tactics perform best.
Average Cost Per Engagement on Facebook
So what is considered a good cost per engagement on Facebook? Unfortunately there is no one-size-fits-all benchmark. CPE varies significantly based on factors like industry, geographic region, campaign objective, and target audience. Here are some average Facebook CPE benchmarks for popular objectives:
| Campaign Objective | Average CPE |
| Clicks to Website | $1.08 |
| Landing Page Views | $0.56 |
| Lead Generation | $28.13 |
| Catalog Sales | $30.18 |
| Store Visits | $3.19 |
As you can see, average costs per engagement span a wide range from $0.56 per landing page view to $30.18 per catalog sale. Comparing your CPE to these benchmarks provides an initial gauge of how your campaigns are performing.
CPE Benchmarks by Industry
Drilling down to specific industries reveals more precise CPE benchmarks to target. Software companies tend to have some of the highest cost per engagement on Facebook, while e-commerce brands see lower averages. Here are average CPEs for selected industries:
| Industry | Average CPE |
| Software | $10.13 |
| SaaS | $11.76 |
| E-Commerce Apparel | $2.58 |
| Auto | $1.92 |
| CPG | $2.36 |
Software companies pay a premium to generate social engagements, likely due to their complex products and considered purchase decisions. On the other hand, consumer facing industries like retail and automotive achieve lower CPEs on average.
CPE Benchmarks by Objective and Industry
The most effective CPE benchmarks combine industry averages with specific campaign goals. For example, a clothing brand focused on engagement may compare their CPE to these apparel industry benchmarks:
| Objective | Apparel Industry Avg. CPE |
| Landing Page Views | $0.43 |
| Lead Generation | $19.22 |
| Messages | $15.60 |
Meanwhile, a software company optimizing for conversions could reference these benchmarks for the SaaS industry:
| Objective | SaaS Industry Avg. CPE |
| Catalog Sales | $24.61 |
| Registrations | $17.05 |
Granular industry and objective benchmarks like these provide the best standards to aim for with Facebook ads.
Factors That Impact Cost Per Engagement
While industry averages deliver a baseline for comparison, many factors cause CPE to fluctuate on a per-campaign basis. Optimizing these key factors can directly reduce cost per engagement over time:
Target Audience
Who you target makes a major difference in engagement costs. Audiences with an existing affinity for your brand or products engage at much lower costs than cold audiences. Try layering in existing customer information or lookalike audiences to target warmer leads.
Creative Assets
Ad creative has a profound impact on engagement. Dynamic creative with strong visuals and clear messaging typically generates better engagement at lower costs. Test multiple ad variations to determine which assets resonate best.
Ad Placement
Where your ads are shown influences cost per engagement. Social placements like the Facebook News Feed offer highly targeted reach at efficient CPEs. Try testing Display Network placements to gauge impact on engagement costs.
Ad Frequency
How often users see your ads also impacts engagement rates and costs. Setting an ideal ad frequency cap tailored to your audience can improve engagement efficiency over time.
Campaign Timeframe
Engagement costs fluctuate week-over-week and month-over-month. Run campaigns consistently over longer timeframes and compare CPE over time to account for seasonal variances.
Offer & Messaging
Crafting campaigns with compelling offers and messaging makes engagements more likely, thus improving CPE. Tailor calls-to-action and ad copy to promote specific types of engagements.
Device Targeting
Engagement costs differ significantly by device. Separate mobile and desktop campaigns typically achieve lower CPEs than general campaigns reaching all devices.
How to Reduce Cost Per Engagement
Optimizing the factors above can directly lower cost per engagement over time. Here are some more tips to reduce CPE on Facebook campaigns:
Analyze Ad Sets & Audiences
Break campaigns into tightly themed ad sets, then closely analyze performance data. Identify best-performing combinations of audiences, placements and creative to allocate more budget towards.
Set Lower Cost-Per-Action Bids
Bidding to optimize for conversions instead of engagements tends to improve CPE by reaching more qualified audiences. Lower cost-per-action bids keep spend focused on driving conversions.
Test & Eliminate Poor Performers
Ruthlessly test then eliminate low performing placements, audiences and ad creative that push CPE higher. Keep refresh creative and audiences to continually improve performance.
Refine Targeting
Layering in interests, behaviors and additional demographic filters refines targeting to more qualified audiences. Lookalikes also improve relevance for lower CPEs.
Make Engaging Ads
Ad creative has huge impact on engagement. Test interactive ad formats like carousels, slideshows and videos that motivate social engagement.
Answering Key Questions About Facebook CPE
Understanding the typical cost per engagement benchmarks for your industry and campaign objectives provides a starting point for optimizing Facebook ad performance. Use these key learnings to answer common CPE questions:
What is a good CPE on Facebook?
A good CPE varies significantly based on your industry, objective and audience. Compare your costs to industry benchmarks for your specific campaign goals to gauge performance.
How can I lower my CPE on Facebook?
Test different audiences, placements, creative, bidding, and targeting to identify the most efficient combinations. Eliminate poor performers to allocate budget to what works.
Why is my Facebook CPE so high?
High CPE is often caused by targeting too broad of an audience, using poor performing creative, or bidding too high. Refining targeting and creative and lowering bids can reduce high CPE.
What CPE should I aim for on Facebook?
Aim for CPE at or below industry benchmarks for your specific objective. For example, an ecommerce brand should target the average CPE for their objective like $0.43 for landing page views.
Does high/low CPE mean a good/bad campaign?
Not necessarily. High CPE may just indicate an early campaign with untuned targeting. Low CPE could mean you are leaving conversions on the table. Optimize based on conversions, ROAS and overall spend efficiency.
Getting More Value from Your Facebook Investment
While cost per engagement provides helpful insight, always optimize campaigns based on bottom-line business impact. CPE alone does not account for conversion value. A high CPE campaign could still drive outstanding return on ad spend if conversions are profitable. Similarly, a low CPE does not guarantee true efficiency or scale.
Use CPE benchmarks to gauge engagement efficiency then correlate with conversion rates, average order value, return on ad spend and overall spend to determine true effectiveness. With comprehensive performance data, refined targeting and ongoing creative optimizations, hitting your ideal cost per engagement provides significant impact on Facebook campaign performance.