Question 1

Advertising aids society and economy in&#8230;&#10;A) Decreasing competition between retailors&#10;B) Balancing supply and demand for products&#10;C) Reducing stereotypes in the media&#10;D) Increasing materialism

Accepted Answer

Advertising helps balance supply and demand by informing consumers about products and services, thus facilitating market transactions.

Question 2

Advertising __________________.&#10;A) has many detrimental side-effects on individuals&#10;B) fuels the economy&#10;C) subsidizes editorial content&#10;D) All of the above apply

Accepted Answer

Advertising has various impacts: it can have negative effects on individuals, it fuels economic activity by promoting goods and services, and it subsidizes editorial content by providing a source of revenue for publishers.

Question 3

Media corporations that generate revenue from advertising need to find &#8230;&#10;A) the cheapest available editorial content to maximize their profits, so they can make maximum revenue from advertising&#10;B) the editorial content that attracts the maximum number of consumers, regardless of content production costs.&#10;C) A profit-maximizing equilibrium that satisfies requirements of both the audience and the advertising market, which is called ad revenue/subscription revenue balance&#10;D) All of the above applies.

Accepted Answer

Media corporations must find a balance that satisfies both their audience and advertisers to maximize profits, rather than just focusing on cheap content or solely on attracting a large audience.

Question 4

____________works with locally stored files ("cookies") to display ads related to prior user online browsing on different websites, ultimately to motivate users to purchase products offered on sites visited earlier.
Which term fits best?

A) Agenda chasing
B) Remarketing
C) Purchase history
D) Costs per thousand (CPM)

Accepted Answer

Remarketing specifically refers to the practice of targeting users with ads for products and services they have previously shown interest in, by using cookies to track their browsing history across different websites. This strategy is used to encourage users to return to a website and complete a purchase.

Question 5

is a label for plat?forms for monitoring, tracking, gauging, and evaluating advertising campaigns and consumer behaviors, aiming to provide accurate, personalized advertising services with quantifiable results

A) Remarketing
B) Computational advertising
C) Agenda chasing
D) Advertising-subscription mixed-revenue model(s)

Accepted Answer

Computational advertising is the correct term as it involves using algorithms and computational techniques to optimize advertising strategies and targeting, ensuring ads reach the most relevant audience for effective results.

Question 6

Real-time bidding means ___________&#10;A) Users' social media posts are used to personalize ads&#10;B) Online ad space is sold through auction while user awaits loading of online content&#10;C) Users are redirected to a commercial site visited earlier&#10;D) Media generate revenue from both advertisers and media users.

Accepted Answer

Real-time bidding is a digital ad buying process that allows advertisers to bid on ad space in real-time, as a webpage is loading. This process ensures that advertisers can target specific audiences efficiently, and publishers can maximize their ad revenue.

Question 7

The amount of advertising profit that goes to companies that do not create original content has been increasing compared to traditional media outlets.

Accepted Answer

Digital platforms and social media companies, which often do not create original content, have seen an increase in advertising revenue at the expense of traditional media outlets like newspapers and television networks, which typically invest in original content creation.

Question 8

For most media, what is the primary product that they sell?&#10;A) Data&#10;B) Audience attention&#10;C) Editorial content&#10;D) Channel bandwidth

Accepted Answer

The primary product that most media sell is audience attention. Media companies attract audiences with their content and then sell the opportunity to advertise to this audience to advertisers. This model applies to television, radio, online platforms, and print media.

Deck 14: The Role of Advertising