Divide spend by total engagements to price social activity on an interaction basis.
Dividing spend by the number of engagements gives the unit economics of the channel. The reciprocal — engagements delivered per unit of currency — is shown alongside, because that is the figure to maximise when a budget is fixed. Unit cost is the only number that lets you compare channels with wildly different budgets, and it is the input every bid and budget decision ultimately rests on.
Cost Per Engagement
Cost Per Engagement = Social ad spend ÷ Engagements
Cost Per Engagement = Social ad spend ÷ Engagements Dividing spend by the number of engagements gives the unit economics of the channel. The reciprocal — engagements delivered per unit of currency — is shown alongside, because that is the figure to maximise when a budget is fixed.
Unit cost is the only number that lets you compare channels with wildly different budgets, and it is the input every bid and budget decision ultimately rests on.
This calculator takes 2 inputs: Social ad spend, Engagements. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.