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Design and Analysis of Online Advertising Expenditure Model based on Coupon Download
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Jung-Ho Jun (School of Business & Management Research Institute, Kyung Hee University)
Kyoung-Jun Lee (School of Business & Management Research Institute, Kyung Hee University)
Vol. 16, No. 4, Page: 1 ~ 19
Keywords
CPCD(Cost Per Coupon Download), CPC(Cost Per Click)
Abstract
In offline environment, unlike traditional advertising model through TV, newspaper, and radio, online advertising model draws instantaneous responses from potential consumers and it is convenient to assess. This kind of characteristics of Internet advertising model has driven the growth of advertising model among various Internet business models. There are, conventionally classified, CPM (Cost Per Mile), CPC (Cost Per Click), and CPS (Cost Per Sales) models as Internet advertising expenditure model. These can be examined in manners regarding risks that stakeholders should stand and degree of responsibility. CPM model that is based on number of advertisement exposure is mechanically exposed to users but not actually recognized by users resulting in risk of wasted expenditure by advertisers without any advertising effect. While on aspect of media, CPS model that is based on conversion action is the most risky model because of the conversion action such as product purchase is determined by capability of advertisers not that of media. In this regard, while there are issue of CPM and CPS models disadvantageously affecting only one side of Internet advertising business model value network, CPC model has been evaluated as reasonable both to advertisers and media, and occupied the largest segment of Internet advertising market. However, CPC model also can cause fraudulent behavior such as click fraud because of the competition or dishonest amount of advertising expenditure. On the user aspect, unintentionally accessed advertisements can lead to more inappropriate expenditure from advertisers. In this paper, we suggest "CPCD"(Cost Per Coupon Download) model. This goes beyond simple clicking of advertisements and advertising expenditure is exerted when users download a coupon from advertisers, which is a concept in between CPC and CPS models. To achieve the purpose, we describe the scenario of advertiser perspective, processes, participants and their benefits of CPCD model. Especially, we suggest the new value in online coupon; "possibility of storage" and "complement for delivery to the target group". We also analyze the working condition for advertiser by a comparison of CPC and CPCD models through advertising expenditure simulation. The result of simulation implies that the CPCD model suits more properly to advertisers with medium-low price products rather than that of high priced goods. This denotes that since most of advertisers in CPC model are dealing with medium-low priced products, the result is very interesting. At last, we contemplate applicability of CPCD model in ubiquitous environment.
Show/Hide Detailed Information in Korean
쿠폰 다운로드를 기준으로 하는 온라인 광고비 모델의 설계 및 분석
전정호 (경희대학교 경영대학 & 경영연구원)
이경전 (경희대학교 경영대학 & 경영연구원)
Keywords
인터넷 광고, 광고비 모델, 비즈니스 모델
Abstract
기존의 인터넷 광고비 모델에는 CPM (Cost Per Mile), CPC (Cost Per Click), CPS (Cost Per Sales) 등이 존재하며, 특히 CPC 모델은 광고주와 미디어에게 모두 합리적이라는 평가를 받으며, 인터넷 광고 시장에서 높은 비중을 차지하고 있다. 그러나 CPC 모델 또한, 경쟁 사업자에 의한 과도한 광고비 부과나 부정한 광고 수익 등을 목적으로 하는 부정 행위가 발생할 수 있고, 사용자의 전환 의도 없는 광고물 클릭으로 인해 광고주에게 부당한 광고비가 부과될 수 있는 것이 사실이다. 이에 본 연구에서는 새로운 광고비 모델인 'CPCD' (Cost Per Coupon Download) 모델을 제안한다. CPCD 모델은 사용자가 단순히 광고물을 클릭하는 행동을 넘어 광고주가 제공하는 쿠폰을 다운로드 받았을 때 광고비가 부과되는 모델로서, CPC 모델과 CPS 모델의 중간 개념이라고 할 수 있다. 본 연구에서는 CPCD 모델의 설계 및 분석을 위하여 발생 가능한 시나리오를 제시하고, 프로세스 분석 및 관련 이슈에 대한 검토를 수행한다. 그리고 CPCD 모델에 참여하는 각 사업 참여자들에 대한 분석을 수행하고, 비용 시뮬레이션을 통해 CPC 모델과 CPCD 모델을 비교함으로써, CPCD 모델에 참여하는 광고주의 사업 참여 조건을 밝히며, 마지막으로 유비쿼터스 환경에서 CPCD 모델의 적용 가능성에 대하여 고찰한다.
Cite this article
JIIS Style
Jun, J.-H., and K.-J. Lee, "Design and Analysis of Online Advertising Expenditure Model based on Coupon Download", Journal of Intelligence and Information Systems, Vol. 16, No. 4 (2010), 1~19.

IEEE Style
Jung-Ho Jun, and Kyoung-Jun Lee, "Design and Analysis of Online Advertising Expenditure Model based on Coupon Download", Journal of Intelligence and Information Systems, vol. 16, no. 4, pp. 1~19, 2010.

ACM Style
Jun, J.-H., and Lee, K.-J., 2010. Design and Analysis of Online Advertising Expenditure Model based on Coupon Download. Journal of Intelligence and Information Systems. 16, 4, 1--19.
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@article{Jun:JIIS:2010:417,
author = {Jun, Jung-Ho and Lee, Kyoung-Jun},
title = {Design and Analysis of Online Advertising Expenditure Model based on Coupon Download},
journal = {Journal of Intelligence and Information Systems},
issue_date = {December 2010},
volume = {16},
number = {4},
month = Dec,
year = {2010},
issn = {2288-4866},
pages = {1--19},
url = {},
doi = {},
publisher = {Korea Intelligent Information System Society},
address = {Seoul, Republic of Korea},
keywords = { CPCD(Cost Per Coupon Download) and CPC(Cost Per Click) },
}
%0 Journal Article
%1 417
%A Jung-Ho Jun
%A Kyoung-Jun Lee
%T Design and Analysis of Online Advertising Expenditure Model based on Coupon Download
%J Journal of Intelligence and Information Systems
%@ 2288-4866
%V 16
%N 4
%P 1-19
%D 2010
%R
%I Korea Intelligent Information System Society