EPC

When launching an advertising campaign, it’s crucial to pay attention to key performance indicators (KPIs). These indicators show insightful information on the effectiveness and profitability of campaigns. Of these metrics for affiliates, Earnings Per Click (EPC) comes out as being especially important. 

In this article we’ll answer the question what is EPC in affiliate marketing and look at ways to improve this metric!

Got any questions regarding monitoring the performance of your advertising campaign? Chat with other webmasters at Yellana or ask a question to our support team in Telegram, we are glad to help!

What does EPC stand for in affiliate marketing?

At its core, EPC in affiliate marketing measures the average revenue generated per click on the affiliate link. This metric shows performance and offers data on the profitability of traffic sources and the effectiveness of advertising campaigns. To calculate EPC, use the following EPC formula:

EPC = revenue / clicks

To better understand, let’s look at an example: assume a webmaster uses a Cost Per Lead (CPL) payment model for online casino ads. In this case, every visitor that registers on the casino’s site brings a commission for him.

If, over a certain period, the webmaster drives 1000 clicks to the casino’s landing page and earns $400 in revenue from 40 registrations, the calculation would be as follows:

EPC = $400 / 1000 = $0.4

This indicates that the webmaster made $0.4 from each click.

To understand what is a good EPC in affiliate marketing, it’s important to check if the traffic’s EPC is higher than the advertisement’s cost per click. Once you begin a marketing campaign and receive a few hundred clicks, all of this will become clear.

Beginners should keep in mind, though, that there are other indicators besides average earnings per click that can be used to determine whether an ad campaign is successful. To understand your total earnings and get a full picture of the interaction with a particular offer, more indicators are needed, such as Cost Per Action (CPA), Conversion Rate (CR), Return on Investment (ROI), etc.

Factors affecting EPC

To understand how to increase your earnings per click you need to know what affects it. Here is what you need to pay attention to:

1. Traffic quality
   The quality of traffic that is sent to affiliate offers is the key of EPC optimization. It’s a basic metric that means the EPC will be higher the more relevant the audience is to the offer.
2. Offer relevance
   The offer’s own relevance is closely linked to the traffic quality. Higher EPC will result from an offer that speaks to the target audience’s needs and interests.
3. Conversion Rate (CR)
   The conversion rate is a crucial component that also directly affects EPC. This measure shows the proportion of users whose clicks lead to a conversion event (such registering or making a deposit if we talk about Gambling offers). More conversions per click result in larger profits and an enhanced EPC when the conversion rate is higher.
4. Seasonality and trends
   Even though they may not be as noticeable in niches like iGaming, seasonality and trends can still affect EPC, especially in the sports or eSports betting niches. Webmasters’ profits from the content they make are influenced by the popularity of specific events in this case, so it’s important to monitor the sports calendar to make the most of it.
5. Overall advertising strategy
   EPC optimization is significantly influenced by the entire affiliate marketing strategy. Factors such as ad creatives, landing page design, GEO selection, and targeting strategies collectively contribute to campaign effectiveness and EPC performance.

Affiliate marketers can maximize the returns on their advertising efforts by understanding and effectively addressing these aspects.

How to improve EPC in affiliate marketing

Now that we understand what affects EPC, we can look at the ways to increase your earnings:

Choose quality traffic sources

The correct traffic source selection is the first step towards achieving the highest EPC.  Pay-Per-Click (PPC) advertising, social media advertising platforms like Facebook, and search engine optimization (SEO) are some of the best ways for obtaining high-quality visitors. These channels offer targeted audience reach and engagement opportunities, improving the chance to drive conversions and boost your EPC.

Select high-converting offers

Selecting the best offer is necessary to maximize EPC. Examining the nuances of offer selection has a big impact on how well an ad campaign performs. To explore in-depth insights and discover high-converting offers, read to our guide below.

Implement optimization techniques

To increase your EPC and boost affiliate sales, strategies like split testing, landing page optimization, and refined ad design are essential. By systematically improving these elements based on performance data, webmasters can improve conversion rates and, in turn, maximize EPC.

Continuous monitoring and adjustment

By consistently monitoring analytics, affiliates can detect patterns, pinpoint opportunities for enhancement, and quickly implement required modifications. This can help you maximize optimization, bring high-quality leads that lead to conversions, which will raise EPC.

Conclusion

Now you have a full understanding of the EPC meaning in affiliate marketing. As you see, earn per click is an essential marketing term when it comes to running traffic to affiliate products. 

If you are ready to run traffic right now, join Yellana affiliate network. You’ll get a personal manager who makes sure you get the best offer possible!