MGMT 3850 QUIZ 1 QUESTIONS AND ANSWERS

MGMT 3850 QUIZ 1 QUESTIONS AND ANSWERS Chapter 7 Advertisers on a display network can pay through each of the following methods EXCEPT CPM (cost per mille) CPC (cost per click) CPA (cost per acquisition) flat fee The three broad methods of display ad targeting on Google’s display network are demographics, behavior, ad size people, demographics, ad style people, behavior, content audiences, demographics, content A website that sells wedding dresses targets ads to (1) women (2) ages 22 to 35 (3) actively searching for a wedding dress (4) with an interest in fashion (5) in the top 10% of income (6) within the greater Denver area. What is a major downside of this targeting? The audience will be so small that the ads are not likely to generate a large volume It is unethical to use income as a targeting method Some of those targeting methods cannot be combined on Google’s ad network Demographics like gender and age cannot be used to target ads An advertiser bids $10 CPM, achieves a 1% CTR and achieves a 5% conversion rate. What would an equivalent CPA bid for this advertiser be? $100 $10 $200 $20 Two advertisers achieve the same 1% CTR on their ads. Advertiser A bids $10 CPM while Advertiser B bids $1.50 CPC. Which advertiser will be awarded more impressions from the ad network? Advertiser A because his/her bids are expected to earn the ad network more money Advertiser A because CPM bidding is preferred by the ad network Advertiser B because his/her bids are expected to earn the ad network more money Advertiser B because CPC bidding is preferred by the ad network Good display ad copy does everything EXCEPT communicate a value proposition attract attention invite action pre-convert the consumer Showing the same advertisement too many times to the same person can annoy consumers, and in addition is less effective than showing ads fewer times to more people. To avoid showing the same ad 10 or more times to the same person, advertisers engaging in remarketing should employ frequency caps periodically turn off remarketing campaigns rethink their use of remarketing show remarketing ads only to consumers who have visited the advertiser’s website within the last 24 hours Dynamic remarketing ads are universally more effective than other remarketing ads use different ad content across targets use dynamic animation are the best starting place for a digital marketer To determine whether a new ad copy is better at attracting attention, an advertiser should conduct an A/B test and measure the click-through rate the ROAS the impression volume the conversion rate When a consumer clicks on a display ad, the landing page should match the ad’s value proposition imagery all of these options color scheme