Overview

Earnings Per Click (EPC) is a vital metric for affiliate marketers, revealing the average earnings per click on Pay Per Click (PPC) campaigns or affiliate links.

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What is Earnings per click (EPC)?

Earnings Per Click (EPC) provides an accurate estimation of the average earnings marketers can expect to generate every time a potential customer clicks on a pay-per-click (PPC) ad or affiliate link. EPC is a critical metric for affiliate marketers and e-commerce advertisers. It delivers immediate insight into the performance and potential profitability of a marketing campaign.

Formula

EPC = Total Earnings / Total Clicks

Example

If an affiliate marketing campaign earned $500 from 250 clicks, the EPC would be $2 ($500/250). Meaning, for every click, they earned, on average, $2.

Why is EPC important?

Earnings per click (EPC) is crucial to understand the profitability of your PPC or affiliate marketing campaigns. Several clicks may not always lead to thriving sales—and vice versa. EPC provides the most accurate assessment of profitability by marrying direct online activity (clicks) with revenue generation (earnings) into one comprehensible, measurable metric.

Which factors impact EPC?

  • Ad Relevance: Ads must be pertinent to the consumers’ needs and wants for high Earnings per click (EPC).
  • Landing Page Quality: A high-quality page can significantly boost conversions.
  • Product Value: More high-value products usually lead to more significant earnings per click.
  • Consumer Trust: Trustworthy brands and products typically draw more clicks.

How can EPC be improved?

Improving Earnings per click (EPC) involves enhancing click quality and the likelihood for conversion. This could mean optimizing ad copy, pursuing targeted marketing strategies, or improving website engagement and CRO (conversion rate optimization) techniques.

What is EPC’s relationship with other metrics?

Many e-commerce metrics are intertwined with Earnings per click (EPC). For instance, the Click-Through Rate (CTR) directly impacts the EPC—the higher the CTR, potentially higher the EPC. Conversion Rate (CR) also influences EPC as higher conversions lead to improved earnings. Another metric, Average Order Value (AOV), directly affects the total earnings, thereby influencing the EPC.