EPC - Earnings Per Click
EPC (Earnings Per Click) is a metric that shows how much revenue each click in an affiliate or ad campaign generates on average. It is used to compare the effectiveness of different campaigns and channels.
What is EPC?
Earnings Per Click (EPC) is calculated by dividing the total revenue (or commission) by the total number of clicks. If an affiliate campaign has generated $10,000 in revenue from 2,000 clicks, the EPC is $5.
Formula: EPC = Total revenue / Number of clicks
EPC is primarily used in affiliate marketing, but can be applied to any marketing channel to assess how effectively each click translates into revenue.
EPC in affiliate marketing
For affiliates, EPC is the most important metric to assess which programs are the most profitable to promote. An advertiser (webshop) with a high EPC is more attractive to affiliates because each click they send generates more revenue.
- Network EPC: The average EPC of an affiliate program, reported by the network. Used by affiliates to select programs.
- Your personal EPC: Your actual earnings per click based on your own results. Can differ significantly from the network average.
EPC vs. other metrics
- EPC vs. CPC: CPC (Cost Per Click) is what you pay per click in ads. EPC is what you earn per click. To be profitable, EPC > CPC.
- EPC vs. ROAS: ROAS (Return on Ad Spend) shows the return as a ratio. EPC shows it as an absolute amount per click.
- EPC vs. conversion rate: EPC combines conversion rate and order value in one number. A low conversion rate with high order value can result in a better EPC than a high conversion rate with low order value.
What affects EPC?
- Conversion rate: The higher the proportion of clicks that result in sales, the higher the EPC.
- Average order value: More expensive products typically result in higher EPC.
- Traffic quality: Targeted traffic from relevant sources converts better than broad, unspecified traffic.
- Landing page: An optimized landing page that matches the ad increases conversion and thus EPC.
- Season: EPC can fluctuate significantly throughout the year - Black Friday, Christmas and other seasonal peaks typically increase EPC.
How to improve your EPC
- Optimize conversion rate: Improve product pages, checkout and user experience.
- Increase order value: Upselling, bundles and free shipping thresholds increase AOV and thus EPC.
- Target traffic: Send traffic to the most relevant pages. Generic front page links have a lower EPC than specific product links.
- Offer attractive offers: Promotions and discounts increase conversion rates and improve EPC during the promotional period.
We know online marketing in Shoporama
We've been working with online marketing ourselves for decades. As the only shop system in the country, we have spoken multiple times at conferences such as Marketingcamp, SEOday, Shopcamp, Digital Marketing, E-commerce Manager, Ecommerce Day, Web Analytics Wednesday and many more.