EPC really matter? (4)
Hi everyone,
I find it hard to understand this EPC.
I am on CPM right now.
Does EPC work like this?
each campaign
(how much I earn for this offer) / (how much CPM I spent for this offer) = My EPC
Then I compare this EPC (example $0.20) with the network offer EPC (example $0.40)
As long my EPC is lower than the network EPC, then I am profitable?
But I also thought network EPC is including many traffic sources. So does it really matter this network EPC as a benchmark number?
Any help? Thanks.
You confuse me with your question but I'll have a go at it.
Lets say you're looking at an offer that pays $5, your network registered a total of 1000 clicks and 20 conversions.
$5 * 20 conversions = $100 revenue generated.
$100 revenue / 1000 clicks = $0.10 EPC.
If your EPC on the network would be $0.50, it wouldn't automatically mean that you are profitable.
You could have sent $100 worth of traffic to your lander with 10 clicks from lander to offer and have gotten 1 conversion: $5 / 10 = $0.50 but running a loss of $95.
You could have sent $100 worth of traffic to your lander with 200 clicks from lander to offer and have gotten 20 conversions: $100 / 200 = $0.50 but breaking even.
Network EPC is just another indicator. Network EPC for an offer could be $0.10 because of lots of cheap and shitty traffic being sent. Then you come in, send high quality traffic and your EPC would be $0.40.
However, your EPC is something different again. By knowing your costs for traffic, lander CTR and whatnot... you can calculate the EPC you would need to achieve to run at a certain profit margin that you have in mind.
People often judge offers partially by network EPC. And actually, you could if you run long enough and have enough historical data. I mean.. I can make a prediction of my EPC for specific types of offers in combination with network EPC and my traffic source.
Now, since people like to see a high network EPC for an offer because it gives affiliates a sense that the offer, payout and the network is good... there has been some click scrubbing going on which makes the network EPC or your EPC look higher for a specific offer on a specific network in comparison to the same offer on another network. <-- tried, tested.. confirmed.
Originally Posted by ericchuawc
(As mentioned by h0mp, the network EPC may be used by some as an indicator for a specific offer, but should not be used in your calculations, as it can be skewed by a range of factors; what's more important is your EPC)
EPC > CPC = PROFIT
More:
http://stmforum.com/forum/showthread...d-Making-Money
CPC -> Cost Per Click
EPC -> Earnings Per Click
You are looking at this stuff from the reverse side. As h0mp said, don't rely too much on network EPC because of all those things mentioned.
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