Introduction
If you're building or operating a chatbot, understanding monetization metrics is crucial to maximizing your revenue potential. Unlike traditional web advertising, conversational monetization has its own set of KPIs that reflect the unique nature of chat-based interactions.
In this guide, we'll break down the four essential metrics every chatbot publisher should know: eRPM, EPC, CTR, and CVR.
eRPM: Effective Revenue Per Mille
eRPM (Effective Revenue Per Mille) measures how much revenue you earn per 1,000 sessions or conversations. It's the gold standard for comparing monetization performance across different traffic sources and time periods.
Formula
eRPM = (Total Revenue / Total Sessions) × 1,000
Example
If you earned $50 from 10,000 conversations:
- eRPM = ($50 / 10,000) × 1,000 = $5.00
Why It Matters
eRPM normalizes your revenue regardless of traffic volume, making it easy to:
- Compare different monetization strategies
- Track performance over time
- Benchmark against industry standards
Typical Benchmarks
| Traffic Quality | eRPM Range |
|---|---|
| High-intent (shopping, finance) | $8 - $25 |
| Medium-intent (travel, education) | $4 - $10 |
| Low-intent (general chat) | $1 - $5 |
EPC: Earnings Per Click
EPC (Earnings Per Click) tells you how much you earn each time a user clicks on a sponsored recommendation. It's particularly important for affiliate-based monetization.
Formula
EPC = Total Revenue / Total Clicks
Example
If you earned $100 from 500 clicks:
- EPC = $100 / 500 = $0.20
Why It Matters
EPC helps you understand:
- The quality of your affiliate offers
- How well recommendations match user intent
- Which categories drive the most value
Optimization Tips
- Match intent precisely: Show travel offers when users discuss trips
- Curate premium affiliates: Higher-commission offers = higher EPC
- Test different placements: Native recommendations outperform banner-style
CTR: Click-Through Rate
CTR (Click-Through Rate) measures the percentage of users who click on a sponsored recommendation after seeing it. It's a key indicator of relevance and user engagement.
Formula
CTR = (Clicks / Impressions) × 100
Example
If 200 users clicked out of 5,000 who saw an offer:
- CTR = (200 / 5,000) × 100 = 4%
Why It Matters
CTR reflects:
- How relevant your recommendations are
- The quality of your ad creative/copy
- User trust in your recommendations
Benchmarks for Conversational Ads
| Ad Type | Typical CTR |
|---|---|
| Native in-chat recommendations | 3% - 8% |
| Banner-style interruptions | 0.5% - 1.5% |
| Sidebar/peripheral ads | 0.1% - 0.5% |
Pro tip: Native, contextual recommendations in chat can achieve 3-5x higher CTR than traditional display ads because they feel like helpful suggestions, not interruptions.
CVR: Conversion Rate
CVR (Conversion Rate) measures the percentage of clicks that result in a completed action—typically a purchase, signup, or booking.
Formula
CVR = (Conversions / Clicks) × 100
Example
If 20 purchases came from 500 clicks:
- CVR = (20 / 500) × 100 = 4%
Why It Matters
CVR tells you:
- How qualified your traffic is
- Whether you're matching the right offers to the right users
- The overall quality of your monetization funnel
Factors Affecting CVR
- Intent accuracy: Was the user actually looking to buy?
- Offer relevance: Does the product match what they discussed?
- Landing page quality: Is the affiliate's checkout smooth?
- Price point: Higher-priced items typically have lower CVR
Putting It All Together
These four metrics work together to paint a complete picture of your monetization health:
eRPM = Sessions × (Impressions/Session) × CTR × CVR × Average Commission
The Optimization Loop
- Low CTR? → Improve relevance and timing of recommendations
- Low CVR? → Better intent matching or higher-quality affiliates
- Low EPC? → Negotiate better commissions or find premium offers
- Low eRPM? → Increase fill rate or show more (but not too many) recommendations
Tracking with Sponsy
Sponsy's publisher dashboard provides real-time visibility into all these metrics:
- eRPM trends over time
- CTR by category and vertical
- CVR by affiliate network
- Revenue breakdown by source
With these insights, you can continuously optimize your chatbot's monetization strategy and maximize your earnings.
Conclusion
Understanding eRPM, EPC, CTR, and CVR is essential for any chatbot publisher serious about monetization. By tracking these metrics and understanding how they interconnect, you can make data-driven decisions that boost your revenue while maintaining a great user experience.
Ready to start tracking? Join the Sponsy waitlist and get access to our comprehensive analytics dashboard.
