How do you calculate EPC?
The formula is simple: divide total earned commission by the number of clicks in the same period. With €500 commission on 2,000 clicks, the EPC is €0.25.
EPC is usually calculated per programme, per publisher or per campaign, so you can make comparisons.
How publishers use EPC
For publishers, EPC is the key metric for comparing programmes. A high commission means little if the webshop converts poorly; EPC shows what a click actually yields.
If your EPC is structurally below your category average, publishers will choose a competitor instead.
How advertisers use EPC
As an advertiser you compare publisher EPCs to see who sends efficient traffic. A publisher with few clicks but a high EPC delivers purchase-ready visitors.
EPC also helps steer your commission: if EPC does not rise after a commission increase, the increase was probably unnecessary.
The pitfalls of EPC
EPC is an average and says nothing about volume. A programme with a high EPC but little reach sometimes delivers less in absolute euros.
Only compare EPC within the same category and market; a German electronics EPC is not comparable to a French fashion EPC.