# ECPC

## Contents

The eCPC refers to the effective cost per click. While the CPC amount is predefined before the campaign is launched, the eCPC is usually used only after campaign completion or cost evaluation for ongoing campaigns. eCPC is often used for bookings with large commercial networks or ad placements with Google AdWords. Similar to the eCPC, eCPM is used for billing based on page impressions.

## Background

Marketers must have exact numbers for the evaluation of online advertising in networks or SEA campaigns. A CPC is defined before campaign launch in order to simplify cost planning. This is usually the maximum price that an advertiser is willing to pay per click. However, since most campaigns are implemented through bidding platforms, the actual click costs may differ from the original CPC.

In affiliate networks, the affiliates are often compensated with a CPO model. They do not know the value of a click on the ad they are showing on their website. The eCPC can help with more accurate billing in both cases and in the planning or optimizing of existing or new campaigns. Affiliate marketers can use the eCPC to determine the value of a service, in this case clicks on an ad, regardless of the type of payment.

## Simple calculation

The eCPC is very easy to calculate. Once the campaign is complete, the ad costs are simply divided by the actual clicks.

Example:

Cost of advertising: $1,000 Number of clicks:$5,000

 $1,000 ÷ 5,000 clicks =$0.2 per click = The eCPC totals 20 cents.

If affiliates determine their advertising income using CPO, they can convert it into eCPC as well. For this purpose, the sum of all compensations is divided by the number of clicks. This provides information about how much a click on the publisher’s site is worth.

Example:

Revenue: 500 EUR

Clicks on the website: 10,000

 $500 ÷ 10,000 =$0.05 per click = The eCPC is 5 cents.