Which measure would be most helpful for determining how well a banner ad achieves the objective of increasing the number of transactions on a retail website?
A) click-through rate
B) recognition test
C) break-even analysis
D) cost-per lead
E) conversion rate

Question

Quizplus · Accepted Answer

The most helpful measure for determining how well a banner ad achieves the objective of increasing the number of transactions on a retail website is conversion rate, as it indicates the percentage of website visitors who actually make a purchase after clicking on the banner ad. Other measures such as click-through rate (A) only indicate how many people clicked on the ad, which may not necessarily lead to a transaction. Recognition test (B) is a measure that tests if people recognize the ad, but does not measure its effectiveness in driving transactions. Break-even analysis (C) is a financial analysis tool that determines the minimum amount of sales needed to cover costs, but does not necessarily measure the effectiveness of the banner ad in achieving the specific objective of increasing transactions. Cost-per-lead (D) measures the cost for generating a lead, which may not necessarily lead to a transaction or revenue.

Which Measure Would Be Most Helpful for Determining How Well