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EPC

EPC stands for Earnings Per Click.

EPC is an important metric used to measure performance. The EPC for an offer can be determined using a very simplistic calculation:

Your Earnings Per Click (EPC) is your earnings divided by the number of clicks your ad received.
The formula is: Earnings ÷ Clicks = EPC

For example:

In the same spirit, you will notice EPC figures when browsing our offers in your Affiliate dashboard. Those are what we call network EPCs.

We determine an offer’s network earnings per click by calculating the average revenues generated for each click by affiliates who promote the offer efficiently, ensuring that this calculation encompasses a significant volume of clicks.

Here’s a quick example:

An affiliate (e.g., a Webmaster or a Media Buyer) displays three distinct offers on a website’s front-page spot and gets 900,000 impressions/day. Here’s the breakdown:

Offer #1

  • 300,000 Impressions / 2000 clicks / CTR: 0.60%
  • Income: $100
  • EPC: $0.05
  • E-CPM: $0.33

Offer #2

  • 300,000 Impressions / 500 clicks / CTR: 0.16%
  • Income: $60
  • EPC: $0.12
  • E-CPM: $0.20

Offer #3

  • 300,000 Impressions / 4000 clicks / CTR: 1.30%
  • Income: $150
  • EPC: $0.038
  • E-CPM: $0.50

Offer #2 clearly has the best EPC, but you would make only 0.20$ per 1000 impressions generated (E-CPM) on your website. On the other hand, Offer #3 has the worst EPC, but you will make $0.50 per 1000 impressions.

Example 2: A media buyer runs a CPC (cost per click) campaign.

Takeaway: If you only look at the EPC, you will miss out on bigger profits. In this case, you’re better off promoting a product that has a lower EPC but attracts a bigger proportion of your traffic.

It remains crucial to consider additional metrics other than simply relying on an offer’s EPC to assess its quality.

Many factors can affect a campaign’s performance, including the banners you use, your traffic, the location of your banners, and your overall marketing strategy.

EPC is an interesting tool for making comparisons and conducting an in-depth analysis of your campaign. However, it is by no means an absolute metric that you should rely on to assess your campaign’s performance.

So, what’s the absolute best way to analyze your campaign’s performance?
There is none. You have to look at the big picture.

Read more here:

Earnings Per Click: What Does EPC Mean in Affiliate Marketing?