Alright so the logic is pretty simple. As I’ve been trying to find best advertiser who can make me money I got into this situation where I could not understand certain terms. One of them was EPC
EPC means Earnings per click and it is generally calculated on the basis of per 100 Clicks.
Interesting! I am not sure why they don’t call it EP100C or EPHC (Earning per hundred clicks)
Suppose 3 month EPC for Advertiser Inkjet Superstore is equal to US$42.00
and 7 day EPC for Advertiser Inkject superstore is equal to US$25
The here are you earning results
- For the past three months, a publisher that means you (because you are publishing their ads) earned US$42 for every 100 clicks (monthly average).
- And During the past 7 days, a publisher (that means you) earned US$25 for every 100 clicks (daily average).
I am an affiliate of above mentioned advertiser
So in mathematical terms EPC = Profit ÷ Clicks × 100
Consider the below affiliates from commission junction
By looking at the above screenshot from commission junction, I can see that for the period of the last 3 months, an average payout to GoDaddy affiliates has amounted to $21.53 per every 100 clicks sent to GoDaddy, and for VMWare affiliates, they’ve been earning an average of $28.08 on every 100 clicks referred for last 7 days.
Commission Junction’s definition for EPC is as follows
Your success is relative to how many visitors you can drive through your site or paid search link that will generate sales for an advertiser you are promoting. EPC does not mean that if someone clicks on that link 100 times you earn the dollar amount in the EPC.
Your EPC is calculated in an “apples to apples” comparison with all publishers by taking each publisher’s total commissions earned (regardless of currency) and then converting that total (if necessary) to US dollars. After each publisher’s commission total amount has made this conversion to a common currency (USD), the amount is then divided by the total number of clicks times 100. At this point, your EPC is established. Your EPC is then converted back to your functional currency (provided it differs from USD) when you view it on the Home Page of your Publisher Account Manager.
3 Month EPC
Three month EPC values are calculated and updated daily, using data beginning five months previous through three months previous. On the first of each month the “five months previous through three months previous” timeframe changes to accommodate the monthchange. For example, an EPC rating in June is calculated using data from January, February, and March. It is necessary to use data beginning five months previous to give accurate EPC ratings that may include extended or reversed transactions.
There must be at least 1000 clicks for the 3-month period to calculate your EPC. If less than 1000 clicks occurred, N/A will display for the EPC.
7 Day EPC
The calculation is made by taking data from yesterday counting back seven days. We take the sum of all commissions for the 7 days and divide it by the sum of all clicks for the same 7 days then multiplying this by 100. If today’s date = N, the date range used is N-8 to N-2. NOTE: There must be at least 100 clicks for the 7-day period to calculate your EPC.
If less than 100 clicks occurred, N/A will display for the EPC. In addition, advertiser EPC will display as “New” for the first 90 days in the Commission Junction Network.
I hope the above helps you understand.
But there are few other things you need to consider before you decide which advertiser is better for you.