One of the factors that determine the effectiveness of affiliate marketing programs is performance metrics. This metric will tell you the average revenue you’re generating per click. EPC or earnings per click is one of the performance metrics that can help you check the average revenue you want to know.
So what exactly is earnings per click (EPC)? What is the meaning of EPC index in Affiliate Marketing? Let’s find out with Ola City in the following article!
I. The concept of earnings per click (EPC)
Earnings Per Click, also known as EPC metric – described as a performance metric of the average income generated from the results of each link click. The EPC metric will reflect the average revenue per click you’re driving towards an offer.
Checking how much you earn per click is important for you to determine your affiliate marketing income. From there, adjust the link to suit each article content, check which link is most effective. However, not always clicking on the link is income.
Earning per click is a calculated and determined way of calculating earnings for affiliate programs. Simply put, it will tell you the value of the clicks that the affiliate program provides.
II. What does EPC mean in Affiliate Marketing?
In the above sharing, we will see that the EPC index is extremely important in affiliate marketing. Publishers can use this metric to determine which campaigns generate the best revenue.
Example: You run two affiliate marketing campaigns, but the revenue from these two campaigns is different. Usually we will choose the campaign that brings in more revenue to continue running. However, the EPC index will help you determine exactly which campaign is really more optimal.
1. Proper understanding of EPC in Affiliate Marketing
The EPC metric is the result of calculating the average value for each click you achieve and not simply the value of any single click. EPC is a cost per click formula that allows you to analyze data on multiple clicks at once and return your earnings per click. So this metric really reflects earnings per click is completely accurate.
The EPC metric is a popular form of payment structure for affiliate sites as well as a number of high affiliate value analytics tools. Because this metric will give you insight as to what the referrals will pay per click. One click or individual action may not get you much income.
For example, a high bounce rate or multiple clicks won’t grow into sales, or new signings may constitute one click, but it’s unlikely to generate income. Besides, different types of subscriptions or purchases at each level can earn different commission amounts. So averaging per click is important.
2. Suggested Tips to Boost Your EPC Campaigns
EPC creation for each affiliate partnership and your individual links and campaigns provide a valuable and understandable way to see how your efforts are paying off, and what will be right – or wrong!
Here are a few ways that EPC can help you compare and boost your affiliate marketing campaigns:
- Calculate your earnings per click formula to show how much you earn from each campaign or affiliate program.
- Compare different affiliate partners side by side to see who makes the most money, regardless of their base value per click.
- Find out which site or advertising platform you use generates the most productivity and income.
- Evaluate how different links perform compared to each other.
- Combine historical data with more recent data to see if your campaigns are improving or starting to slow down.
- Find out if you make more money by signing up for a lower cost so it’s easier to achieve, or signing up for a higher cost isn’t easy to win.
- Assess whether paid advertising is worth the money by determining how much you earn versus how much you spend.
- Detect problems like invalid links, high bounce rates, and broken links and work to fix them.
- Do A/B testing for two versions of your website to establish which is most effective and profitable.
III. How does PPC differ from EPC?
PPC is a pay-per-click advertising model where advertisers pay publishers each time their ads are clicked. Search Engine Advertising is one of the most important forms of PPC.
So if a PPC advertiser offers $2 per click, it means that the advertiser pays the publisher $2 whenever their ad is clicked.
PPC price is not fixed, it depends on how much the advertiser is willing to pay, and also a lot of other things to be considered. Meanwhile, EPC is interested in the total amount of commissions generated and the number of clicks it used to make.
– Let’s say, total commission generated is $300 and clicks triggered is 100, then EPC comes out as $3 per click. It is calculated whenever a specific action is completed by the user generating a commission for the publisher.
– You can also use EPC in the PPC model. Let’s say Google AdSense publisher earns $300 in a month and total ad clicks is 200 hours EPC would be $300/ 200 = $1.5
It can be seen that the form of making money online is very developed nowadays. If you know how to run EPC, this will certainly be an opportunity for you to increase your income sources. EPC will help you calculate the income per affiliate marketing campaign.
Hopefully, the article Ola City shared above will help you to implement Affiliate Marketing campaigns to get the results you expect.
Ola City Global