CPE, or Cost Per Engagement, is a pricing model used in display advertising that refers to the amount an advertiser is willing to pay for a specific engagement with their ad. This can include actions such as clicks, likes, shares, or other interactions with the ad. The cost is determined by the advertiser and is usually calculated on a per-engagement basis. Let us say an advertiser is running a display ad campaign to promote a new product. They are willing to pay $0.50 for each click on the ad. If the ad receives 100 clicks, the total cost of the campaign would be $50.