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This course is very confusing to me

The cost per engagement does not make sense to me. Isn’t the CPE is based on business and advertiser? how come to have a definitive formula for CPE?


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Course: https://www.educative.io/collection/10370001/6237869033127936
Lesson: https://www.educative.io/collection/page/10370001/6237869033127936/6436043583651840

Dear @Yigong_Liu,
CPE is based on the business and advertiser. The formula stated for CPE has two parameters to calculate it. These parameters are derived from business and advertisement and are related to each other.

CPE = (Ad rank of ad below)/(Ad rank score) + 0.01

Ad rank score: Ad predicted score ∗ bid.
This shows how it is dependent on advertisement and business.

Hope it helps!