What is EPC in Marketing?
If you're an affiliate partner or marketer, EPC is one of the most critical metrics to understand to assess whether or not your affiliate programs are effective. EPC, or "earnings per click," is a popular payment system for affiliate programs and a metric affiliates use to measure the value of the click-through they deliver to their affiliates.
Calculating how much you may earn for every click you drive to a merchant's website is critical for calculating your future affiliate revenue. Using the EPC can help you realize how much you may make, which links and sites are the most successful, and which ones require some improvement.
Before signing up for any affiliate network, successful affiliate marketers use a systematic technique to evaluate the EPCs. This enables them to determine how much they should pay per click to generate significant earnings for their campaign.
This article provides answers to the most popular questions about EPC.
What Exactly Does an EPC Stand for in Marketing?
Earnings Per Click (EPC) is an abbreviation for how much money you make for each click on your affiliate link. This is the commission rate or revenue you earn for click-throughs or activity on your affiliate links in pay-per-click affiliate marketing networks.
Understanding how much you earn per click is critical for estimating affiliate marketing income and making your referral marketing programs work for you. EPC calculates the average amount of income earned by a single click. This is an essential metric since it gives you a real-time picture of your affiliate marketing revenue.
You may make data-driven judgments with predictability and even target other affiliate products with greater CPCs. Because once you know your EPC, the CPC becomes irrelevant. In other words, you'll be profitable if you constantly make more than you spend.
How to Calculate EPC Correctly?
You may be spending a lot of money on advertising as an affiliate marketer on YouTube, Instagram, Facebook, and other platforms. You have already paid money for each click you made on a merchant website. If you break down a whole campaign into a single click, you should be able to calculate the precise amount of money you spent driving each click.
So, if you know the EPC for a specific affiliate program and compare it to your cost per click, you can calculate your expected profit per click. How much is your net per click after deducting your campaign expenses?
The EPC formula indicates the total value of all received clicks, not just the value of a single click. It's a cost-per-click formula that lets you evaluate data from several clicks simultaneously. It then computes your revenues per 100 clicks.
Below is the EPC formula:
Take the entire amount of money you've earned in commissions for a given affiliate product over a specified period.
Divide that result by the number of clicks your affiliate link received within the same time period.
Example:
Assume you ran advertising for an affiliate product and made $100 in total earnings. 50 clicks generated your profits on your affiliate link.
In this situation, the EPC is as follows: $100 (total earnings) / 50 (total clicks) = $2 (EPC).
This information is available on many affiliate marketing websites for affiliate marketers. They will compute the average affiliate EPC of their products on your behalf. Because the average is derived from the affiliate program's network of partners, this statistic is commonly referred to as "network EPC." These earn-per-click affiliate programs provide this information to assist you in making more informed affiliate product selections.
The Importance of Earnings Per Click (EPC)
As an affiliate marketer, you may assess various data indicators to see how successfully your traffic converts. So, why is EPC so crucial for affiliate marketers?
It's because EPC is a metric that can be tracked at any time and on any day. You don't have to wait till the end of the month to know how well you're doing. You may also examine it over more extended periods, such as a month or a year. Therefore, EPC is an excellent metric for determining how effectively your traffic converts to a particular offer.
How to Increase Your Earnings Per Click in Marketing Campaigns?
If you want to generate more revenue with an affiliate product, lower your cost per click (CPC) or increase your earnings per click (EPC). Because advertising platforms control this measure, it makes more sense to focus on boosting your EPC.
Here are the easy strategies to boost your earnings per click (EPC):
Content Strategy
An excellent way for affiliate partners to begin is by assessing their existing content strategy. What seems to be working, and where it needs improvement. If any portions of the current content where an affiliate link may be added. Blogs, vlogs, product reviews or roundups, and resource sites featuring preferred goods are examples of such content.
Affiliates may increase conversions from their regular audience and new organic consumers and those coming from search engines or referral links by adding links to current, popular content. With content marketing costing 62% less than marketing strategy and producing three times the number of leads, it may be a simple approach to reduce advertising expenditures while increasing conversion and EPC rates.
The following are the most popular content types for affiliate links:
Product reviews
Product listing
Resource pages
Comparison articles
Email Automation
Affiliate partners should consider including affiliate links in their email campaigns to boost customer touchpoints and, eventually, conversions. If partners decide to include affiliate links in their emails, they should do so sparingly in order to prevent spamming subscribers; as a general rule of thumb, affiliates should consist of one to two affiliate links for every three to five emails sent.
Not all major email service providers allow users to insert affiliate links in their messages (such as MailChimp). Affiliate partners that do not currently include affiliate links in their email campaigns should examine the platform standards of their email provider before implementing this strategy.
Your EPC marketing automated email series may look like this:
Welcome email
Lead with nurturing to establish a connection.
Sharing content
An email with an affiliate link
More content sharing
Email nurturing
A/B Testing
A/B testing may assist affiliates in better understanding what form of message or content connects with their audience, whether they are aiming to improve their content strategy or have already done so. Those investing in A/B testing consistently earn huge benefits, with 58% of businesses saying that A/B testing for conversion rate improvement is beneficial.
Affiliate partners may sync more closely with their audience or traffic sources by testing marketing strategies and assessing the results, enhancing efficiency and relevancy and, in this instance, increasing profits.
Marketing Monitoring and Analysis
Affiliate partners may generate fresh content, do A/B testing, and refine their approach, but it's all for nothing if the correct tracking isn't in place. Affiliates may determine whether or not their optimizations are effective by measuring specific metrics like CPA and EPC. If CPA or CPC expenses are down, but EPC costs are increasing, partners will know they have effectively begun to drive costs down while increasing profit.
Web Optimizations
Affiliate partners should ensure that their websites and landing pages are easy to navigate, clean, and search engine optimized, much like a marketer's website. The fewer clicks necessary, the greater the chance of a buyer converting. This also applies to mobiles.
Those partners who do not optimize their sites for mobile web traffic will almost surely lose that traffic to competitors whose sites are optimized for mobile, with 86% of the best landing pages being mobile-friendly.
In addition to seamlessly optimizing mobile web and desktop traffic, partners must ensure their sites are optimized for compelling ad placements. Consumers are less likely to click on advertisements or even remain on a page that seems busy and unorganized, so ad placements must fit into the overall style of the site or landing page
Final Thoughts
In addition to working with a reliable affiliate network, partners are more likely to improve their EPC, produce better earnings, and achieve tremendous success in the affiliate marketing sector if they follow these best practices. In addition to working with a reliable affiliate network, affiliate partners, like marketers, want KPIs to guarantee their traffic is producing effective conversions. Earnings Per Click (EPC) is one of the most useful KPIs an affiliate partner may monitor since it reflects the amount of money made per click on a campaign or affiliate link.
