Given the low conversion rate of 0.798%, one of the analysts recommends improving the search side ad copy. His reasoning is that the poor copy is leading to low conversions as the ad is not attractive enough. Do you agree or disagree?

Marketing by Geoffrey
  1. Paid media includes the following:

 

Group of answer choices

 

  1. Blogs, e-mails, and mobile apps

 

  1. All of the above options

 

  1. Blogs, mobile apps, and search

 

  1. Mobile apps, search, and firm website

 

  1. Display ads, affiliate marketing and PPC

 

 

  1. Outbound marketing includes:

 

Group of answer choices

 

  1. Content marketing, blogs and TV

 

  1. TV, Radio Ads and Direct Mailing

 

  1. Paid Search, Display Ads and Affiliate Marketing

 

  1. Viral marketing, blogs and Paid Search

 

  1. Both (a) and (d)

 

 

3.

 

You have the following details on a search ad campaign that you have run. The average revenue per transaction generated from the search marketing program is $300.

 

Media Spending: $745,000

Impressions: 5,345,123

Clicks: 211,234

Transactions:1687

 

 

Group of answer choices

 

Cost per click = $3.52 and profit from search ad program = $145,000

 

Cost per click = $3.52 and cost per sale or transaction = $151.75

 

Conversion Rate = 0.798% and probability of conversion/purchase = 0.0045

 

Net Revenue generated from search ad program = $506,100 and cost per click = $3.24

 

 

Given the details from the following data, the marketing manager claims that the search campaign should be stopped as it results in negative return on advertising dollar. Do you agree or disagree with this? Choose either Agree or Disagree and provide reasons for your answer with calculations if necessary.

 

Media Spending: $745,000

Impressions: 5,345,123

Clicks: 211,234

Transactions:1687

 

  1. Given the low conversion rate of 0.798%, one of the analysts recommends improving the search side ad copy. His reasoning is that the poor copy is leading to low conversions as the ad is not attractive enough. Do you agree or disagree? Choose either Agree or Disagree and provide reasons for your answer.

 

 

Media Spending: $745,000

Impressions: 5,345,123

Clicks: 211,234

Transactions:1687

 

  1. Display ads are useful for:

 

Group of answer choices

 

(c). Increasing the click-throughs on Paid Search campaigns through spillovers

 

(d.) The options (a), (b) and (c)

 

(b). Effecting promotional ad conversions

 

(e). Only (a) and (c)

 

(a). Creating awareness of a brand

 

  1. The ad creative team at a digital ad agency tested a new ad copy (Ad Copy A, making up the treatment condition) against a control condition consisting of a PSA ad. 23,524 consumers were exposed to the control conditions (PSA Ad) and among this group 420 converted at the firm’s website. 546,345 consumers were exposed to the treatment condition (Ad Copy A) and out of this group, 15,721 consumers converted at the firm’s website.

 

(a)   What is the difference in conversion rates (percentages) between the treatment and control groups?

 

 

  1. The ad creative team at a digital ad agency tested a new ad copy (Ad Copy A, making up the treatment condition) against a control condition consisting of a PSA ad. 23,524 consumers were exposed to the control conditions (PSA Ad) and among this group 420 converted at the firm’s website. 546,345 consumers were exposed to the treatment condition (Ad Copy A) and out of this group, 15,721 consumers converted at the firm’s website.

 

 

 

  1. The ad creative team at a digital ad agency tested a new ad copy (Ad Copy A, making up the treatment condition) against a control condition consisting of a PSA ad. 23,524 consumers were exposed to the control conditions (PSA Ad) and among this group 420 converted at the firm’s website. 546,345 consumers were exposed to the treatment condition (Ad Copy A) and out of this group, 15,721 consumers converted at the firm’s website.

 

(c)  Based on the confidence interval calculated in (b), the previous question, what do you conclude about the effectiveness of the new ad copy in effecting conversions?

 

  1. The ad creative team at a digital ad agency tested a new ad copy (Ad Copy A, making up the treatment condition) against a control condition consisting of a PSA ad. 23,524 consumers were exposed to the control conditions (PSA Ad) and among this group 420 converted at the firm’s website. 546,345 consumers were exposed to the treatment condition (Ad Copy A) and out of this group, 15,721 consumers converted at the firm’s website.

 

(d)  If the cost of display ad, CPM is $7, and the profit per conversion is $15, then what is the Return on Investment (ROI) for the display ad campaign with the new Ad Copy?

 

  1. The ad creative team at a digital ad agency tested a new ad copy (Ad Copy A, making up the treatment condition) against a control condition consisting of a PSA ad. 23,524 consumers were exposed to the control conditions (PSA Ad) and among this group 420 converted at the firm’s website. 546,345 consumers were exposed to the treatment condition (Ad Copy A) and out of this group, 15,721 consumers converted at the firm’s website.

 

(e)  What is the opportunity cost of not targeting those in the control group?

 

 

  1. Hulu is interesting in determining the maximum amount it can spend as acquisition cost in acquiring a customer on Instagram social media platform. Historically, the customers acquired on Instagram had a monthly retention rate of 95%, and the customers provided a yearly margin of $60. Assuming cost of capital or interest rate i = 10%, the maximum Hulu can pay to acquire a customer on FB without making a loss on the customer is

 

Group of answer choices

 

$ 440.00

 

$ 117.60

 

$ 227.58

 

$ 30.61

 

$ 206.89

 

  1. Some of the customers acquired on Instagram are influencers who, in addition being a die-hard Hulu fan (assume monthly retention rate of 95%, interest rate of 10% with yearly margin of $60) also spread positive word of mouth and influence others to sign up for Hulu. If the social contagion parameter for such influencers in 0.35 (that is, 100 such influencers were able to persuade 35 new customers to subscribe to Hulu), what is the maximum that Hulu can pay to acquire such an influencer without making a loss on acquiring the influencer?

 

Group of answer choices

 

$ 333.78

 

$ 303.44

 

$ 44.23

 

$ 645.33

 

$ 172.48

 

14.

Which of the following is NOT an advantage of influencer marketing?

 

Group of answer choices

 

Higher customer engagement and loyalty

 

Always lower cost compared to other marketing advertisement strategies

 

None of the options here

 

Increased brand awareness

 

Improved brand credibility and trustworthiness

 

  1. There is no need to take into account the saturation effects while increasing spending in a medium (e.g., paid search or display) while developing optimal spending plans using media mix models

 

Group of answer choices

 

True

 

False

 

  1. One way to check if there are saturation effects in online advertising (like PPC or display) is to

 

Group of answer choices

 

There are no saturation effects in online advertising

 

Turn off the advertisement completely for some duration and observe the effects of it on revenue

 

Ramp up advertisement spending slowly over time and see if the advertising elasticity remains the same or not

 

Survey potential customers using a questionnaire to ask whether or not they respond to online advertising

 

None of the options specified here

 

 

  1. Multitouch attribution is not an issue when customers use several keywords in succession at a search engine to search for a product or service

 

Group of answer choices

 

True

 

False

 

18.

Choose the best option. “Attribution results are useful for…..

 

Group of answer choices

 

Accounting purposes to understand how different marketing campaigns have contributed to conversions at a website

 

All of the options provided here

 

Allocating investments across different media in a more informed manner

 

Understanding the impact of catalog drops on website sales of a retailer

 

  1. Attribution estimates are needed usually when:

 

Group of answer choices

 

The customer journey is long

 

All of the options provided here

 

The customer journey has more touchpoints and longer purchase cycles

 

The value of conversion is high

 

 

  1. Which of the following statements is true about first-party and third-party cookies?

 

Group of answer choices

 

Third-party cookies are set by the website being visited, while first-party cookies are set by a different website than the one being visited.

 

First-party cookies are set by the website being visited, while third-party cookies are set by a different website than the one being visited.

 

  1. First-party cookies are used for tracking user behavior across different websites, while third-party cookies are used to personalize content on the website being visited.

 

Both first-party and third-party cookies are set by the website being visited.

 

Privacy regulations can make:

 

Group of answer choices

 

(c). Reduce advertising rates charged by websites/platforms over time

 

(e). None of the above

 

(a). Targeting customers online easier

 

(b). Increase the cost for acquiring customers online

 

(d). Both (b) and (c)

 

  1. Which of the following is a benefit of advertising on retail media?

 

Group of answer choices

 

Access to first-party data from the retailer to target specific audiences

 

Reach a broad audience that may not be interested in your products

 

Display your ads on a variety of different websites and platforms

 

Increase brand awareness through TV and radio ads

 

 

23.

What are some advantages of advertising in the metaverse?

 

Group of answer choices

 

Access to a global audience and potential customers offline

 

Opportunity to collect and analyze vast amounts of offline data on user behavior and preferences

 

All of the options specified here

 

Ability to create immersive experiences and engage with customers on a deeper level

 

Combine customers offline and online behavior

 

  1. Which of the following is a potential advantage of using AR/VR in advertising?

 

Group of answer choices

 

Enhanced engagement and interactivity with consumers

 

Decreased production costs for ad campaigns

 

Higher click-through rates on digital ads

 

Increased brand awareness through traditional media channels

 

  1. Answer the following essay question with your response not exceeding 525 words.

 

What are the key challenges facing digital advertising today, and how can they be addressed? In your essay, you may want to consider some of the following topics: (a) ad fraud and brand safety (b) data privacy and transparency (c) ad-blocking and consumer behavior (d) emerging technologies and platforms and (d) the role of regulation and industry standards. In your essay, you may want to draw on examples from the industry, academic research, and current events to support your arguments and recommendations.