CPC (Cost Per Click) and EPC (Earnings Per Click) are two different metrics used in online advertising, particularly in affiliate marketing, to measure performance. They represent different sides of the advertising equation:
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CPC (Cost Per Click):
- CPC refers to the cost an advertiser pays for each click on their advertisement. It's calculated by dividing the total cost of the ad campaign by the number of clicks received.
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Formula: CPC = Total Cost/Number of Clicks - For example, if you spent $100 on an ad campaign and received 200 clicks, your CPC would be $0.50 per click.
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EPC (Earnings Per Click):
- EPC represents the average earnings generated for each click an affiliate sends to an advertiser's offer. It helps affiliates measure the effectiveness of their promotional efforts.
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Formula: EPC = Total Earnings ------------- Number of Clicks - For instance, if an affiliate generated $500 in revenue from 1,000 clicks, the EPC would be $0.50 per click.
CPC is used by advertisers to determine the cost-effectiveness of their campaigns. A lower CPC means lower advertising costs per click, which can be more efficient for advertisers.
EPC is used by affiliates to measure the revenue generated per click. A higher EPC indicates higher earnings potential for affiliates.
Both metrics are valuable in assessing the performance and profitability of advertising or affiliate campaigns. Advertisers aim for a lower CPC to minimize costs, while affiliates strive for a higher EPC to maximize their earnings from each click they drive to an offer.
