EPC (Earnings Per Click, earnings per click) — the average earnings generated by one click on an affiliate link.
This metric is often used in affiliate programs and networks. EPC helps assess how much traffic to a specific offer earns and compare several offers with each other.
How to calculate EPC and why it is needed
Formula:
EPC = Earnings / Number of clicks
For example, an affiliate link received 1 000 clicks, and the total earnings from this traffic amounted to $500:
$500 / 1 000 = $0,50
EPC is $0,50. This means that, on average, each acquired click generated $0,50.
For a media buyer, this figure is especially useful when compared with the cost of traffic. If one click costs $0,30 and generates an average of $0,50, the traffic pays off. If a click costs $0,70 with an EPC of $0,50, the expenses are higher than the earnings.
It does not matter that not every user generates money. One may simply click the link and leave, while another — completes the target action and generates a payout. EPC takes the total earnings and distributes them across all received clicks.
What EPC depends on
The final value is influenced by several factors at once:
-
payout amount for the target action;
-
conversion rate;
-
approval rate;
-
GEO;
-
traffic source and quality;
-
audience;
-
landing page and other stages of the funnel.
Therefore, a large payout for the target action does not necessarily mean a high EPC. If users rarely complete the required action, the average earnings per click may be low.
How to use EPC
EPC is convenient for comparing offers, but you should not choose based on this figure alone. The EPC listed in an affiliate program is usually calculated based on the results of traffic that has already been sent to the offer.
Therefore, it is better to use the EPC in the affiliate program as a benchmark and review your own results after launch.
Important: affiliate programs may calculate and display EPC differently. For example, it may be calculated not per one click, but per 100 clicks. Therefore, before comparing offers, it is worth checking exactly how the affiliate program calculates this metric.
