EPC- Earnings per click
Formula: total commissions earned/total clicks
EPC is important because it is not only an indicator of conversion but it clearly shows what a click is really worth.
Knowing the program’s EPC can help you budget what a reasonable spend will be if you are planning to use PPC strategies. The idea is to find terms that will cost you less than the EPC to maximize your earnings.
Based on the EPC performance of the program in general compared to how your web properties are performing with the offer, you will be able to decide if your visitors fit the merchant’s offer. Not every offer will work with your website and you may need to rework your content focus where you display this particular merchant’s offer.
Things to keep in mind about EPC
The EPC can vary depending on seasonal traffic, news or article popularity traffic.
The types of banners or creative can have a direct impact on the EPC. Are the banners designed to get a click or are they designed with the intent to pre qualify the visitor?