There are a few formulas when measuring the success of your campaigns, and are helpful to know whether you’re a Facebook, PPC, or PPV Internet Marketer. The following are a sampling of the Internet Marketing Success Formulas. Review the Affiliate Marketing Dictionary before learning the formulas because the acronyms (CTR, CR, EPC, etc) included are basic terms you need to know. Quick Jump to Assignment CTR: Total Clicks / (divided by) Total Impressions X (multiplied by) 100 CR: Total Conversions / Total Clicks CPC Expense: CPC Cost X (multiplied by) Total Clicks CPA Revenue: Advertiser/Merchant Commission X Total Conversions. CPM Expense: Total CPM X Total Impressions / 1,000 EPC: Advertiser/Merchant Commission X Total Leads or Sales / Total Clicks eCPA: Total Expenses / (divided by) Total Conversions When Starting Out Make Sure You Memorize The Below 3 Formulas: 1) CTR: Total Clicks / (divided by) Total Impressions X (multiplied by) 100 Click through Rate is used to figure out which of your ads are performing the best. When buying impressions (CPM) views (CPV) this formula is crucial for your optimization as you want to focus where you get the clicks.
Without clicks, you’re unable to optimize your campaign, and need to go back to the drawing board to create ads that speak more to the audience you’re targeting. 2) CR: Total Conversions / Total Clicks Conversion Rate is used to figure out which of your ads is making you money. Without leads or sales, you’re unable to make money, and need to go back to the drawing board to create ads that speak more to the audience you’re targeting. Make sure you keep a close eye on your CTR followed by your CR. Below you can see an example of a PPV campaign. There is an assignment at the end, where you can brush up on your numbers, and confirm you have the formulas mastered. Its important you do this correctly. There is a total of 57 clicks from 1,101 views, which equals a CTR of 5.18% 57 Clicks / 1,101 Views (Impressions) X 100 = 5.177 (round to 5.18%) Next up, you want to discover the conversion rate from the PPV example. There is a total of 49 conversions from 57 clicks, which equals a CR of 85.96% 49 Conversions / 57 Clicks X 100 = 85.964 (round to 85.96% or 86%) 3) EPC: Advertiser/Merchant Commission X Total Leads or Sales / Total Clicks
You can remove non profitable ads (CPC is higher than EPC) when you know your EPC, or split a/b test other affiliate products with higher EPC’s than your CPC.
Make sure to ask your Affiliate Manager for the current average EPC.
Let’s say you are promoting www.AEAtools.com which gives you 30% of the sale. A yearly membership is $297 30% of that is $89.10 It costs $200 to produce 461 clicks You get 3 sales Put the above numbers into the EPC formula: ($89.1 X 3) / 461 = $0.58 EPC. Your CPC costs is $200 / 461 = $0.43 Per Click. EPC [$0.58] (minus) CPC [0.43] = RPC [$0.15] (Revenue Per Click) In layman terms, you’re making $0.15 NET for every click you send to the advertiser. A good rule of thumb is to aim for a minimum EPC of $1.00+. You want to also take the keywords/sites/urls with high CTR’s, and study your unique selling point (USP), and split a/b test new headlines that strike your audience. The audience is interested (good CTR); however, the messaging needs updates to emotionally and/or psychologically trigger (influence) the visitor to BUY! What is the main benefit you’re offering the consumer? Know your market. Speak your markets language. Its an important key in your success when getting into Internet Marketing, Affiliate Marketing, and/or any sustainable (long term income) online business. See next page for a quick assignment. Print it out for hands on practice.
Traffic & Optimization Formulas Assignment (Own the Numbers): This Assignment is a review on the 3 Formulas you learned in this PDF, CTR: Click Through Rate CR: Conversion Rate EPC: Earnings Per Click If you come into any challenges, revisit the AEAtools example found in the content of this PDF study the formulas, get a calculator, and find the solutions. You may want to print this Assignment as a reminder of your accomplishments. Exercise 1: Max Shred US (Muscle Supplement) payout is $30 / sale. Total Impressions = 15,000 Total Clicks = 450 Total Sales = 20 Total Expenses = $284.00 CTR = CR = EPC = RPC = Exercise 2: World of Tanks US (Gaming Offer) payout is $2.50 / lead. Total Impressions = 5,000 Total Clicks = 85 Total Leads = 18 Total Costs = $40.00
CR = EPC = RPC = Exercise 3: Get My Insurance (Insurance Offer) payout is $9.80 / lead. Total Impressions = 65,000 Total Clicks = 285 Total Leads = 23 Total Costs = $265.00 CTR = CR = EPC = RPC = Questions on the above? Email our support at [email protected]
