In the Cost per Engagement model, when does an advertiser pay?

Prepare for the IAB Digital Advertising Operations Certification (DAOC) Test. Utilize flashcards and multiple choice questions with explanations to enhance your readiness. Ensure success on your exam!

In the Cost per Engagement (CPE) model, the advertiser pays specifically when a consumer interacts with the ad. This interaction can encompass a variety of actions, such as clicking on the ad, hovering over it, sharing it, or any other form of engagement that signifies an active interest from the consumer. This model incentivizes advertisers to create more engaging content, as payment is based on actual consumer engagement rather than mere impressions or views.

This approach is distinct from other models. For example, payment isn't triggered simply by displaying the ad or by the ad reaching its set view time, as both of these actions may not indicate meaningful engagement from the consumer. Additionally, while clicks can denote engagement, the CPE model encompasses broader types of interactions, which is why it is uniquely characterized by the payment structure being aligned with consumer engagement rather than just clicks.

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