Deck 7: E-Commerce Marketing Communications

Question 1

The amount spent on online advertising in 2012 was approximately:

A) $373 million.
B) $3.73 billion.
C) $37.3 billion.
D) $373 billion.

Answer 1

C

Question 2

Interest-based advertising is another name for behavioral targeting.

Answer 2

True

Question 3

Search engine marketing saves consumers cognitive energy and reduces search costs.

Answer 3

True

Question 4

In general, the costs for offline customer acquisition are lower than online, but more effective.

Question 5

Online video advertising now accounts for the largest amount of the Internet advertising spending.

Question 6

The growth rate of search engine advertising is slowing compared to other formats.

Question 7

Which of the following is not one of the current trends in Internet advertising?

A) Spending on search engine advertising is overtaken by video ads.
B) Online ad spending grows as a share of the total advertising budget.
C) Mobile and local advertising expands.
D) Display ad marketing continues strong growth.

Question 8

Display ads produce the highest click-through rates.

Question 9

The 2003 CAN-SPAM Act required that the Federal Trade Commission establish a "do not e-mail" registry.

Question 10

Which of the following is not one of the advantages of online advertising?

A) The Internet is where the audience is moving.
B) Online ads provide for greater interactivity with the customer.
C) Online costs versus benefits are well established and understood.
D) Online advertising can target ads to narrow market segments.

Question 11

The sole purpose of marketing communications is sales.

Question 12

A majority of states in the United States have laws regulating or prohibiting spam.

Question 13

The amount spent on online advertising in 2012 accounts for approximately 10 percent of the total amount spent on all advertising.

Question 14

Which of the following advertising messages is a branding communication?

A) Try Adobe Acrobat Professional 10 free for 30 days.
B) Free shipping on every item we sell. Buy two or more items to qualify.
C) Barnesandnoble.com: The Best Place to Buy Textbooks.
D) 50 percent off all calendars. Shop now while supplies last.

Question 15

Research indicates that social network influence may not extend to distant friends.

Question 16

Studies have shown that the most successful marketing campaigns concentrate efforts along a single marketing channel.

Question 17

Spending on social advertising is less than 10 percent of spending on all online advertising.

Question 18

Online advertising methods include sponsorships, e-mail marketing, and referrals.

Question 19

Which of the following is an example of "pull" advertising?

A) search engine ads
B) spam
C) pop-ups
D) interstitials

Question 20

Sending e-mail marketing messages is typically less costly than sending direct mail marketing messages.

Question 21

Which of the following online advertising formats is the most effective?

A) banner ads
B) rich media ads
C) video ads
D) e-mail

Question 22

Which of the following is not one of the four main methods advertisers use to behaviorally target ads?

A) Nielsen ratings
B) data collected from social networks
C) integration of offline data
D) clickstream data

Question 23

All of the following statements about CAN-SPAM are true except:

A) CAN-SPAM went into effect in January 2004.
B) CAN-SPAM prohibits unsolicited e-mail (spam).
C) CAN-SPAM prohibits the use of deceptive subject lines and false headers.
D) Large spammers are among CAN-SPAM's biggest supporters.

Question 24

Which of the following forms of online advertising is growing the fastest?

A) paid search
B) sponsorships
C) video
D) rich media

Question 25

Which of the following online advertising formats attracted the least amount of spending in 2012?

A) search
B) classifieds
C) rich media
D) e-mail

Question 26

All of the following statements about interstitials are true except:

A) Interstitials typically appear as a user moves from one page to another.
B) Interstitials typically last 30 seconds.
C) Interstitials are full-page messages.
D) Interstitials can be deployed over an advertising network.

Question 27

Which of the following is not a practice that degrades the results and usefulness of search engines?

A) social search
B) link farms
C) content farms
D) click fraud

Question 28

Legitimate e-mail addresses based on a high-quality commercial opt-in e-mail list might cost ________ per thousand.

A) 50 cents to $1
B) $5 to $10
C) $50 to $100
D) $500 to $1000

Question 29

A Crayola arts-and-crafts column on a parenting Web site is an example of what form of advertising?

A) sponsorship
B) banner swapping
C) affiliate relationship
D) public relations

Question 30

Research studies have shown that viewers scan search engine results pages:

A) in an "F" shaped pattern with greater attention to the left side of the page.
B) in an inverted "T" pattern with greater attention to the left side of the page.
C) from top to bottom, with little consideration for elements along either margin of the page.
D) from top to bottom, with the greatest attention to the right side of the page.

Question 31

Search engine advertising expenditures in 2012 were approximately:

A) $17 million.
B) $170 million.
C) $1.7 million.
D) $17 billion.

Question 32

The percentage of all e-mail that is spam was approximately ________ percent in 2012.

A) 30
B) 50
C) 70
D) 90

Question 33

If you want to determine the size of your Web site's audience, the metric you will use for the most accurate measurement will be:

A) page views.
B) unique visitors.
C) hits.
D) reach.

Question 34

CAN-SPAM imposes fines of ________ for each unsolicited pornographic e-mail.

A) $1
B) $10
C) $100
D) $1000

Question 35

Which of the following is not true about search engine advertising?

A) Spending on search engine advertising constitutes around 46 percent of all online advertising spending.
B) The top three search engine providers supply over 95 percent of all online searches.
C) The click-through rate for search engine marketing has been fairly steady over the years.
D) Search engine advertising is the fastest growing type of online advertising.

Question 36

A typical response rate for an e-mail campaign would be ________ percent.

A) 2
B) 5
C) 25
D) 50

Question 37

Direct e-mail marketing refers to marketing e-mails sent to:

A) recipients who have expressed an interest in receiving messages from that advertiser.
B) any recipient from a verifiable company e-mail address.
C) recipients who have signed on to a company's e-mail list.
D) recipients with known names and addresses.

Question 38

Which of the following types of display ads is 160 × 600 pixels?

A) leaderboard
B) half-page ad
C) medium rectangle
D) wide skyscraper

Question 39

Promoted Trends is an example of which of the following types of online advertising?

A) blog advertising
B) interest-based advertising
C) game advertising
D) social network advertising

Question 40

The size of a leaderboard is:

A) 728 × 90 pixels.
B) 300 × 600 pixels.
C) 160 × 600 pixels.
D) 180 × 150 pixels.

Question 41

Which of the following measures the ratio of items purchased to product views?

A) conversion rate
B) cart conversion rate
C) browse-to-buy ratio
D) view-to-cart ratio

Question 42

View-through rate measures the ________ response rate to an ad.

A) 30-minute
B) 24-hour
C) 7-day
D) 30-day

Question 43

In ________ advertising, companies pay for ads to be placed dynamically on any participating Web site that the search engine determines is appropriate.

A) paid inclusion
B) network keyword
C) keyword
D) social

Question 44

Which of the following generated the most social advertising revenues in 2012?

A) MySpace
B) YouTube
C) Twitter
D) Facebook

Question 45

Purchasing an online ad on a CPC basis means that the advertiser:

A) pays for impressions in 1,000 unit lots.
B) pays a prenegotiated fee for each click an ad receives.
C) pays only for those users who perform a specific action, such as registering, purchasing, etc.
D) exchanges something of equal value for the ad space.

Question 46

Purchasing an online ad on a CPA basis means that the advertiser:

A) pays for impressions in 1,000 unit lots.
B) pays a prenegotiated fee for each click an ad receives.
C) pays only for those users who perform a specific action, such as registering, purchasing, etc.
D) exchanges something of equal value for the ad space.

Question 47

Which of the following measures the ratio of actual orders to checkouts started?

A) checkout conversion rate
B) conversion rate
C) acquisition rate
D) cart conversion rate

Question 48

Acquisition rate is a measure of the:

A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
B) percentage of visitors who become customers.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of shoppers who do not return within a year after their initial purchase.

Question 49

Recency refers to the:

A) percentage of customers who do not return during the next year after an initial purchase.
B) time elapsed since the last action taken by a customer.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of customers who return to the site within a year to make additional purchases.

Question 50

The most expensive form of online advertising on a per thousand viewer basis is a(n):

A) exclusive sponsorship arrangement.
B) e-mail campaign.
C) banner ad.
D) rich media ad.

Question 51

Conversion rate is a measure of the:

A) percentage of visitors who indicate an interest in a site's products by registering or visiting a product's pages.
B) percentage of visitors who become customers.
C) percentage of existing customers who continue to buy on a regular basis.
D) percentage of shoppers who do not return within a year after their initial purchase.

Question 52

Impressions are a measure of the:

A) number of times an ad is clicked.
B) number of times an ad is served.
C) number of http requests.
D) number of pages viewed.

Question 53

Hits are a measure of the:

A) number of times an ad is clicked.
B) number of times an ad is served.
C) number of http requests.
D) number of pages viewed.

Question 54

Which of the following forms of online advertising typically has the highest click-through rate?

A) e-mail marketing in-house list
B) interstitials
C) search engine keyword purchase
D) sponsorships

Question 55

Axe's posting of video ads online that were subsequently forwarded and shared by millions of Internet users is an example of:

A) referral marketing.
B) nonlinear video advertisement.
C) behavioral targeting.
D) viral marketing.

Question 56

Typical click-through rates for an online display ad are:

A) )02%-.16%.
B) )03%-.30%.
C) 1.5%-2%.
D) 3%-6%.

Question 57

CTR is a measure of the:

A) percentage of times an ad is clicked.
B) number of times an ad is served.
C) number of http requests.
D) number of pages viewed.

Question 58

A typical banner ad might cost ________ per 1,000 impressions.

A) 5 cents
B) $5
C) $50
D) $500

Question 59

Which of the following measures the average length of stay at a Web site?

A) loyalty
B) stickiness
C) recency
D) retention rate

Question 60

The typical dwell rate for rich media and video ads is:

A) 1%-2%.
B) 4%-5%.
C) 7%-8%.
D) 10%-12%.

Question 61

________ is the sending of marketing messages to specific subgroups in the population.

Question 62

According to the Fogg et al. 2003 study, which of the following is the most important factor in the credibility of a Web site?

A) information design/structure
B) information focus
C) design look
D) information usefulness

Question 63

________ ads involves showing the same or similar ad to individuals across multiple Web sites.

Question 64

Which of the following is not a major Web design feature that impacts online purchasing?

A) redundant navigation
B) fast download times
C) easy product list navigation
D) responsiveness

Question 65

A(n) ________ video ad runs when a user mouses over a section of text.

Question 66

Adjustments to a Web site's programming and content in order to improve its rank in search engine results is called search engine ________.

Question 67

In the same way that spam reduces the effectiveness of e-mail marketing, ________ fraud reduces the effectiveness of search engine marketing.

Question 68

Google's AdSense is an example of network keyword or ________ advertising.

Question 69

________ rate measures the percentage of customers who purchase once but never return within a year.

Question 70

In a(n) ________ search, the inclusion and ranking of Web sites depends on a more or less "unbiased" application of a set of rules (an algorithm) imposed by the search engine.

Question 71

________ involves using the social graph to communicate brand images and to directly promote sales of products and services.

Question 72

The industry organization called ________ has established standardized sizes for display ads.

Question 73

A(n) ________ permits a firm to place its logo, banner ad, or text link on another firm's Web site from which users of that site can click through to the originating site.

Question 74

A(n) ________ is an HTML tag containing a list of words describing the Web site.

Question 75

A(n) ________ ad opens beneath a user's browser window.

Question 76

A common form of ________ is targeted content (or advertorials), in which editorial content is combined with an ad message to make the message more valuable and attractive to its intended audience.

Question 77

The ________ rate is an e-mail campaign metric that measures the percentage of e-mails that could not be delivered.

Question 78

All of the following are true statements about the choice of a domain name except:

A) A domain name should be short.
B) Domain names play an important role in reinforcing an existing brand and developing a new brand.
C) Having a dot-com domain is no longer considered preferable, especially in the United States.
D) It is possible to buy domain names.

Question 79

Frequency of Web site use is a function of four independent variables: Web site organization, perceived ease of use, perceived usefulness of the Web site, and:

A) design look.
B) credibility.
C) content quality.
D) simple navigation.

Question 80

Amazon's "one-click" purchase capability is an example of using ________ to enhance sales.

A) advertising
B) search engine functionality
C) Web site functionality
D) offline communications