2 weeks by Lera Melnik
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!
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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.
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:
Affiliate marketers can maximize the returns on their advertising efforts by understanding and effectively addressing these aspects.
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.
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!