Earnings Per Click (EPC)

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Earnings Per Click (EPC) is a key performance metric used in online ads and affiliate marketing that measures the average earnings generated each time a user clicks on an affiliate link or advertisement.

This metric helps advertisers and affiliates understand how much money they make from each click, showing how profitable a campaign or affiliate offer is.1

Formula

epc formula

How Is EPC Calculated?

EPC is calculated by dividing the total earnings generated from a campaign or affiliate link by the total number of clicks received.2

EPC = Total Earnings / Number of Clicks

Explanation:

  1. Total Earnings: The total amount of money you’ve made as commission from an affiliate program or product over a certain period.
  2. Total Clicks: The number of times people have clicked on your affiliate link or ad during the period you’re looking at for earnings.

Example

Imagine an affiliate marketer promoting a product.

Over a period, the affiliate’s link receives 200 clicks, generating $400 in sales.

The EPC for this affiliate would be calculated as follows:

epc calculation example

This means, on average, each click on the affiliate’s link brings in $2.00 in earnings.

This figure helps the affiliate assess the effectiveness of their promotional strategies and compare this product’s profitability with others.2

Purpose

Earnings per Click (EPC) are used mainly to measure the effectiveness of ad campaigns or affiliate marketing efforts.

It shows how much revenue you generate per click on your advertising affiliate links.3

How It Works

EPC doesn’t directly affect how you earn money; it’s a metric used to measure your affiliate marketing performance.

Here’s how it works:

  1. Tracking Clicks and Commissions: When you share an affiliate link with a tracking code, it keeps track of who clicks on your link and visits the advertiser’s site. You earn a commission if that visit leads to a purchase or specific action (like signing up).
  2. Calculating EPC: You calculate your EPC by dividing the total money you’ve made from those affiliate links by the total number of clicks those links received over a certain period, often a month.2

Usage

EPC is mostly used in digital marketing and affiliate marketing to evaluate and optimize the performance of online advertising campaigns and affiliate programs. 4

Specifically, EPC is utilized in:

  • Affiliate Marketing: EPC helps pick the most profitable products to promote.
  • PPC Advertising: Guides in assessing ad profitability on platforms like Google Ads.
  • Email Marketing: Identifies which email links bring in more money per click.
  • Social Media Ads: Determines which ads offer the best return per click.
  • Display Advertising: Helps evaluate the financial return of banner and video ads.
  • Content Marketing: Aids in focusing on content that generates higher earnings from clicks.

Related Terms

References:

1. Ozsahan, H. (2023, October 6). Earnings per click/EPC: How to boost your affiliate marketing. Popupsmart. https://popupsmart.com/blog/earnings-per-click-epc-marketing

2. Thompson, N., Published by Nathan Thompson    Nathan Thompson is a father, Thompson, P. by N., & father, N. T. is a. (2021, March 23). Earnings per click: How to win big at Affiliate Marketing. OptinMonster. https://optinmonster.com/earnings-per-click-affiliate-marketing/

3. Moskowitz, M. (2023, April 5). Earnings per click (EPC): The Essential Metric in affiliate marketing. Affilimate · Affiliate Dashboard and Link Tracking Tool. https://affilimate.com/blog/earnings-per-click/

4. Borelli, A., Holden, G. (2007). Affiliate Millions: Make a Fortune Using Search Marketing on Google and Beyond. United Kingdom: Wiley. https://books.google.com/books?hl=en&lr=&id=esJXENbUbcYC&oi=fnd&pg=PR7

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