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.
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
Tags: best practices, earnings, earnings per click, EPC, links, Revenue, tech, VigLink Posted in Internet Trends, News and Updates, Publisher Best Practices
Bestofmedia’s portfolio of sites feature some of the biggest and best names in publishing, including Tom’s Hardware and Tom’s Guide.
The organization is the fourth largest tech publisher in the United States and has a team of over 80 full-time editors. The family of sites receives more than 10 million unique monthly visitors in the United States (38 million worldwide) and 177 million monthly page views (472 million worldwide).
Each of the sites cater to a different technology enthusiast. Tom’s Hardware focuses on computer hardware and components, while Tom’s Guide focuses on consumer electronics.
“I get emails every day from prospective monetization partners,” said François Hutter, Director of Advertising Solutions & Partnerships at Bestofmedia. “But, what some might not realize is how careful we need to be when evaluating partnerships.”
The process of selecting a monetization partner requires not only a thorough review of the solution by the organization’s product team, but also careful consideration of the Bestofmedia audience.
“We are fortunate in that our audience is fairly sophisticated when it comes to online business, and they understand the need to monetize,” said François. “However, they are also quick to notice changes and will voice their concern if there is a monetization method they don’t like.”
As a result, François is diligent when selecting new monetization partners to ensure partners generate revenue and don’t negatively impact traffic.
In 2009 Bestofmedia found VigLink: a partner that would introduce a new revenue stream for the Company by automatically and seamlessly monetizing the sites’ outbound links to products, services and merchants. The straight forward installation (adding a code snippet to the footer of their site), allowed the product team to easily measure whether VigLink was positively impacting the site’s RPM (a calculation of revenue per page), without negatively impacting traffic.
“After activating VigLink, we immediately saw an increase in RPM,” said François. “And VigLink is so unobtrusive that there was no impact on user experience. It’s great that VigLink doesn’t replace anything we are currently doing for website monetization– the revenue the service generates is purely incremental.”
But the most critical benefit, according to François, comes from the relationships VigLink maintains on behalf of Bestofmedia.
“It’s difficult and time consuming to build relationships with great merchants and advertisers,” said François. “VigLink does this on our behalf — and we benefit from their scale and ability to secure higher commissions than we could earn by ourselves.”
Tags: Business, Monetization, Publishing, Revenue, RPM, Site Management Posted in Publisher Spotlight
This past Cyber Monday was a record-breaking online shopping day, with sales up 15% over the same period last year. It’s clear that more holiday shoppers are turning to online retailers to get through their gift lists than ever before.
We want to help you earn MORE with VigLink this holiday season AND help you provide great content for your readers.
Below are all the resources you need to get you started.
How to Create a Holiday Gift Guide that Will Drive Traffic & Increase Site Revenue
Our comprehensive guide to creating a go-to resource for holiday gift buying on your site.
3 Easy Tips to Increase your Sites’ Revenue this Holiday Season
Optimizing your holiday revenue is as easy as 1-2-3. This is a great introduction to some of the simplest ways to prep your site for the holiday shopping season.
Each week during the holiday season we’ll publish a new “Top 10″ list that features the most popular products in a particular category. You can re-post each list in its entirety on your site (eligible merchant links are included within each list), OR you can use the list for inspiration for holiday gift guides and other holiday-related content.
Holiday Top 10 List: The Automotive Products your Readers are Buying
Holiday Top 10 List: The Kids Toys your Readers are Buying
Holiday Top 10 List: The Mobile Devices your Readers are Buying
Holiday Top 10 List: The Games your Readers are Buying
Holiday Top 10 List: The Movies & Music your Readers are Buying
Happy monetizing this holiday season!
Tags: Christmas and holiday season, Cyber Monday, kids toys, Late Show Top Ten List, Online shopping, Revenue, Top 40, VigLink Posted in Relevant Reading