EPC Explored Infographic Released

There are many ways to measure your native advertising efforts.  At VigLink we tend to focus on earnings per click (EPC). EPC represents a per-click measure of how efficiently your traffic is earning from advertisers. For a given volume of clicks, the higher your EPC, the higher your revenue. It’s imperative for publishers to understand how EPC functions in order to maximize their earnings; this means finding out where people are earning the most, in what industries, and on which devices. We analyzed 100 million clicks and four million dollars in revenue to bring you a detailed breakdown of where the money is.

Calculating EPC is as simple as dividing total commission by total clicks. By doing so, you’re able to determine the potential worth of clicks on your site. But EPC is actually driven by a variety of other variables.  The publisher must also consider (a) price of the item recommended (b) average commission rate of the merchant (c) average likely conversion rate of the shopper.  EPC is the product of those variable.  If one of every hundred clicks from your site turn into a purchase for a $100 gadget, for which you are paid 5%, then your EPC would be (0.01 * (100*0.05)) = $0.05 per click.  Keep the click number constant but sell goods worth $200, and your EPC will double.  Keep clicks and item price constant but double the commerce intent of your traffic by really encouraging them to buy, and the increased conversion rate will mean higher EPC for you.

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One way to consider EPC is by industry. Our data suggest the top three are financial services ($1.80), motorcycles & power-sports ($1.50), and lifestyle ($1.37). On the contrary, the three lowest are art & entertainment ($.06), travel ($.19), and family & baby ($.27). The purchase price of items in the first three industries tend to be significantly higher in cost than the later three, they also warrant recurring customers which merchants value and are willing to pay higher prices for.This explains their high EPCs.

With increasing resources and time devoted to tracking consumer trends over mobile and desktop devices, publishers are focusing more on where they are getting their traffic. Mobile is quickly emerging and will be more influential than desktop traffic in the near future, but it isn’t there yet. Even if publishers have equal amounts of mobile and desktop traffic, that doesn’t mean the conversion rate on mobile clicks is as high.

We learned desktop EPC was the highest at $0.07. Not surprisingly, tablet EPC was not far behind desktop at $0.06, but mobile remained low at only $0.02. Showing that even as mobile traffic to sites is increasing, people are still far less likely to purchase on those devices. The poor user experience on mobile risks deterring even the most avid shoppers. When considering the sports and fitness industry this trend mapped out exactly following the trend with desktop EPC at $0.18, tablet EPC at $0.13, and mobile EPC at $0.10.  Device EPC will be the number to watch as apps and mobile websites continue to increase their accessibility to customers. With the combination of these more efficient sites and the upcoming generation being more comfortable on their mobile devices than desktops, mobile EPCs will undoubtedly continue to rise, but for now… don’t neglect your desktop experience.

Written by Hanna Fritzinger

We have preliminary Publisher Roundtable feedback!

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Our second Publisher Roundtable is live!  This edition focuses on monetization. The survey is ongoing, but we’re eager to share preliminary feedback!

Findings show the most popular method for publishers to monetize their sites are ad networks. When choosing a network, publishers focus on traffic quality. And before engaging long term, general consensus is that publishers should test a network for 1.5 months.

Another interesting finding: content-targeted ads are used more frequently than either affiliate networks or brand sponsorship. These also generate the highest percentage of revenue for publishers. You might infer that publishers are therefore most satisfied with this format, but that’s not the case. Publishers are most satisfied with brand sponsorships.  This discrepancy begs a question: if people are most satisfied with brand sponsorships, why aren’t they using them more often?

Survey results suggest it’s not because they don’t want to, it’s that they don’t know how to do so effectively. The majority of publishers (40%) graded themselves a C at monetization.  Half stated monetization is harder than expected.

It’s critically important that information be accessible to publishers so they can learn how to monetize their content effectively without having to disrupt the user experience with other means of monetization such as content targeted banner ads.  Native advertising tools such as the array VigLink products allow you to monetize your site without interrupting the user experience. We hope you utilize the series of interviews to gain intelligent insights into your monetization strategy!

 

Written by Hanna Fritzinger

Internet Trends: VigLink’s Analysis on Mobile

In the wake of Mary Meeker’s latest Internet Trends Report, the important news seems to be all about mobile. In May of this year, mobile accounted for 25% of all online traffic. Mobile is growing 1.5X every year, and that number is projected to grow.

Mary Meeker’s 2014 Internet Trends Report was just released, and it’s a wealth of information for the tech world and beyond. We’ve been hearing a lot about mobile in recent months, especially at our annual conference, ForumCon, but questions still remain on just how much attention should be averted from desktops and put into mobile. Mobile is certainly a growing trend, but as some of our research suggests it hasn’t fully taken the place of desktops. Meeker further explores these contrasting platforms and describes, with raw data, just exactly what is happening and where the future of online activity is headed.

As seen in one of Meeker’s slides below,  mobile is growing exponentially. In May of 2014 mobile accounted for 25% of all online traffic. That might not seem like a lot when you consider that 75% of traffic is still going through desktops. However, the real potential of mobile is seen when looking at the slope of the trendline. Mobile is growing 1.5X every year, and that number is projected to continue to get bigger. By looking at the graph it can be inferred that by 2015 at least 35% off all online traffic will be coming from mobile, further closing in on the margin with desktop traffic.

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There are a number of reasons why mobile is growing at such a high rate, but perhaps one of the most important to recognize (and also one of the most obvious reasons) is increased availability. Why is it that more and more people are getting smartphones for the first time?  The answer is simple, the price. The price of a smartphone has been decreasing at a 5% annual rate since 2008. This describes why mobile is prevailing in developing countries. Those populations completely bypassed PCs and adopted mobile as their first experience with the online world. This is similar to the experience of today’s youth who will be brought up primarily using mobile devices and tablets first and desktops second. Again, all of these trends are leading to the rising use of mobile to access the internet.

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It’s important to not completely neglect all desktop traffic just yet. As pointed out in our Q1 Content-Commerce Report, for every dollar paid on a desktop click, only 49 cents were paid for a mobile click.  There are improvements to be made with the mobile experience, especially concerning the convenience of making online purchases. However, as seen in the trends noted above, mobile is without a doubt growing and your brand’s success will be dependent how well you integrate mobile.

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So why does this matter? Despite these convincing stats, people still aren’t giving the proper attention to mobile integration. There are plenty of companies who are now releasing statistics that mobile is over half of their total traffic, yet only a small percentage of websites actually have proper mobile sites. Are you taking advantage of the growing mobile industry?

Written by Hanna Fritzinger