• The Journal of Society for e-Business Studies
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• v.16 no.4
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• pp.139-154
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• 2011

Recently Internet keyword search service providers tends to use CPC advertizement method rather than CPM method. However researches how much the CPC method is beneficial to advertisers than CPM method in certain perspectives are insufficient and not performed systematically. So this paper tries to do comparative analysis about the two methods by analyzing the real transactional DB data from an advertizement agency. Due to the difficulties of direct comparison between the two methods because of their different expose positions on the Web and different types of attributes in DB, we did some preprocessing step for the transactional data. From the result of analysis, the click rate of CPC is higher than CPM by 1.3% and the unit cost for the CPC per one click is lower than CPM method by 51 Won. It shows the CPC method is more effective than CPM method for advertizement from the point of advertizement effectiveness (CTR) and advertizement cost (CPC). We hope this research would give useful information to advertisers and marketing managers in making advertizement strategy, marketing decision and budgeting.