MGMT 3850 QUIZ 1 QUESTIONS AND ANSWERS Chapter 7

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