EPC: One of the Most Important Metrics in Affiliate Marketing

EPC One of the Most Important Metrics in Affiliate Marketing 2024

When a webmaster sets up a tracker, they find a multitude of advertising campaign metrics there: EPV, CR, ROI, and others. To successfully drive traffic, it’s essential to understand each of them; otherwise, a webmaster won’t be able to optimize the ad campaign correctly and achieve the desired profit.

EPC One of the Most Important Metrics in Affiliate Marketing 2024


We have prepared an article about one of such metrics called EPC. What it is, how to calculate it, and what to do with it – you can read in the article.

Let’s learn from the best professionals! We have collected 5 Examples of Marketing Strategies from Major Brands for you!

What is EPC

EPC, or Earnings Per Click, represents the amount of revenue generated from a single click. It provides a clear indication of how profitable an advertising campaign is and how much a webmaster earns from each click on an offer.

EPC One of the Most Important Metrics in Affiliate Marketing 2024

This metric does not take into account ad spend and only reflects the relationship between earnings and the amount of traffic brought in. Therefore, it’s important to understand how EPC is calculated.

How to calculate EPC

Typically, the formula looks like this:

EPC One of the Most Important Metrics in Affiliate Marketing 2024

However, each affiliate network calculates this metric differently. For example, some consider clicks only on the landing page, even if the product is also sold on a pre-landing page. It’s important to inquire about all the details from your affiliate manager to understand their specific methodology.

In this context, the earnings considered are the actual earnings already received. Potential payouts are not taken into account. However, all clicks are counted, including unique and non-unique clicks.

Next, let’s explain how a webmaster can end up with a negative outcome depending on EPC.

Imagine a webmaster purchases 5,000 leads at $1 each, spending a total of $5,000. However, only 4,000 people click through to the offer, and the earnings amount to $10,000. The EPC for this traffic would be $10,000/4,000 = $2.5. In this case, the webmaster spends $1 and earns $2.5.

Now, consider a different scenario where a webmaster also earns $10,000 but buys 11,000 leads at $1 each. The EPC would be $10,000/11,000 = $0.9. In this situation, expenses amount to $1, but the profit is only $0.9, resulting in a negative campaign.

Расчет EPC

EPC Calculator

EPC or eEPC?

Sometimes affiliate networks provide eEPC (effective EPC) for offers. Its value reflects the average earnings per click for all the leads generated by affiliates. However, it’s important not to accept this value in good faith, as managers occasionally inflate the EPC for poorly performing offers to attract affiliates and webmasters.

EPC One of the Most Important Metrics in Affiliate Marketing 2024

It’s important to understand that the optimal EPC will vary for different traffic sources. If you’re driving traffic from sources like push notifications or pop-ups, where the click cost is traditionally low, the EPC metric may show high values. However, for affiliates running campaigns on Google Ads, these numbers may not provide much insight, as the audience from this advertising network is generally more expensive.

Nevertheless, the EPC value can help identify a webmaster’s mistakes. If a user’s average ad campaign parameter falls below the average metrics provided by affiliate networks, it’s worth paying attention to the traffic source or other campaign settings.

How to Increase EPC

There is no ideal EPC value, as the parameter depends on a multitude of variables, including the traffic source, offer, advertising format, and more.

Therefore, the primary way to increase the average earnings per click is to optimize your campaigns correctly. To do this:

  • Test different landing pages and pre-landing pages. The number of blocks, their order, and content directly influence lead response and, subsequently, earnings. The more expensive the product, the more information should be provided. Just visit any crypto offer landing page; they often provide extensive details about the project, its applications, endorsements from notable figures like Elon Musk, and stories about people becoming billionaires. People usually do not spend significant sums of money on something they find dubious.

By the way, we have an article about Unconventional Ways to Find Pre-landers and Landing Pages. Check it out!

EPC One of the Most Important Metrics in Affiliate Marketing 2024

On the other hand, advertising for casinos, sports betting, or accessories is different. These purchases are made impulsively, so it’s crucial to focus on the advantages of the offer and provide a quick and straightforward ordering process. Such purchases are often driven by immediate desire, and you can’t afford to let the user second-guess their decision.

EPC One of the Most Important Metrics in Affiliate Marketing 2024
  • Use different creatives. Each segment of your audience has its triggers. Some prioritize price, while others prioritize quality, and some look at product reviews. Statistics, such as those from a website like statista.com, can provide valuable insights into what information is crucial for which group. These data can paint a broader picture, and then webmasters can use testing to identify the most suitable approach for their goals.
  • Create black and white lists. These are lists of traffic sources where your ads will either be allowed or blocked. The more high-performing platforms you have on your whitelist, the higher your EPC is likely to be.

You probably know what is Search Engine Optimization (SEO) and how it is important for driving traffic. SEO is a developing field, and staying up-to-date with the latest trends is essential for your work. That’s why we made a list of 9 Best Online SEO Courses to Succeed in Digital Marketing!

FAQ

How to calculate EPC?

To calculate EPC, you need to divide earnings by clicks. This way, a webmaster can determine the amount of money earned per click.

What are EPC and eEPC?

EPC reflects the cost per click within a specific campaign, while eEPC represents the most effective cost per click for an offer.

How can I increase EPC?

To increase EPC, you should choose optimal creatives, optimize landing pages based on product quality and cost, and manage whitelists and blacklists.

Why pay attention to EPC?

It is important to monitor EPC to understand the effectiveness of your ad campaigns. Sometimes, this metric helps you stop working with an offer on time or avoid starting it altogether, saving you money, time, and stress.

What else should be considered before launching a campaign?

In addition to EPC, you should also look at hold times, offer conversion rates, and the number of approvals. This will help you calculate timing and payouts so you can scale your campaign at the right moment and achieve excellent profits.

What is considered a good EPC?

There is no universal value for all verticals and offers. The main rule is that the cost per click should be lower than the cost per lead. In such a case, your traffic investments will pay off, and your campaign will be profitable.

Conclusion

EPC indicates the effectiveness of a specific advertising campaign. If an affiliate network claims that other affiliates achieve attractive EPC values, it’s essential to be cautious, as replicating their results often requires copying all campaign settings. In practice, this approach rarely leads to significant profits and more often results in losses.

author avatar
Nick Wahlberg
Nick Wahlberg is a seasoned writer with over 6 years of experience in affiliate marketing. Having completed courses like "The Simple Science of Copywriting" by Luciano Viterale, "Writing To Riches" by Charles Miller, and "SEO Copywriting Certification Training" by Heather Lloyd-Martin, Nick brings a wealth of knowledge to his work. Passionate about self-development and family, he believes that a copywriter should not just write but live through their words.
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