W5 L1

Question 1

CPV-CPM

Answer 1

: Cost Per View or Mille you pay for each or / every 1,000 views

Question 2

CPT

Answer 2

Cost Per Time you pay per time unit, e.g. day

Question 3

CPC

Answer 3

Cost Per Click you pay if someone clicks the ad

Question 4

CPA

Answer 4

: Cost Per Acquisition/Conversion you pay if one clicks the ad & buys your product

Question 5

RTB

Answer 5

: Real Time Bidding real time auction: mostly based on CPC (can apply to all above)

Question 6

Cost per Impression (View or Mille)often measured by

Answer 6

CPM (cost per thousand impressions)

Question 7

for who is CPM de best choice and why

Answer 7

• From the publisher’s perspective, CPM is the best choice because of the predictable revenue and measurable results.

Question 8

where do you use cpm/cpv usually for?

Answer 8

CPV/CPM are useful for getting more people are aware of the new brand or a specific product. They do not guarantee/monitor ad performance.

Question 9

which pricing model is often lowest cost?

Answer 9

cost per impression

Question 10

advantage of cost per action compared with cpm/cpv

Answer 10

proof user takes the action

Question 11

why is cpc populair?

Answer 11

CPC is popular because mostly found as nicely balanced between cost and the trackability (by clicks)

Question 12

formule cost per sale

Answer 12

CPM/1000 * 1/CTR * 1/CR

Question 13

quality score and cpc

Answer 13

Websites with a higher/ above-average Quality Score gets a discount on their CPC – the opposite applies for those with a below-average QS

Question 14

CPM is agreeable if the only (and mere) objective is to

Answer 14

o create awareness for new products or campaigns (i.e. Branding)

Question 15

CPC is often used when the objective is to create/measure

Answer 15

creation of an “interest” by the ad – and not necessarily selling the product.

Question 16

• CPA is agreeable for a

Answer 16

a heavily conversion oriented ad with relatively (very) high “click/ conversion”” ratio

Question 17

what ) is the industry standard in online ad pricing.

Answer 17

y Real Time Bidding (RTB)

Question 18

Each ad-space or SEA # position is valued/priced according to

Answer 18

its actual through and demand-supply equilibrium (via bidding)

Question 19

Google uses variants of so-called “second-price auction”

Answer 19

The buyer does not have to pay highest bid but only that of the next highest bidder

Question 20

Why would’t Google simply want to get the meximum bid offered by the highest bidder?

Answer 20

Collaborative Game Theory The answer is to prevent over/underbidding and to find the real value of each ad space (Game-Theoretic Proof)

Question 21

Firms make decisions on whether: they target all customer base with same message (mass – which is no longer common nowadays) or:
2

Answer 21

1 Segments: targeting to certain segments (with multiple messages) – less cost than individualization
2 One-to-one: individualized (personalized) targeting for each customer: possible through big-data & analytics

Question 22

Personalization Levels: Segmentation Not fully indivudualized personalization

Answer 22

different offers, limited in number, are tailored to certain number of segments

Question 23

Personalization Levels: Full Indivudualization Users get individualized (tailored) offers, ads and communication messages based on their:

Answer 23

Purchase, Search, Browse history
* Their likes, hobbies, interests and lifestyles
* Location, demographic and life-cycle characteristics

Question 24

E cart targeting backfire

Answer 24

Customers who received an early ECR ad within 30 minutes to one hour after cart abandonment are less likely to make a purchase.In other words: too-early ECR ads can engender worse purchase rates than without delivering them, thus wasting online advertising budgets

Question 25

Personalized Targeting: Types of Individualization 4

Answer 25

contextual, retargeting, behavioral, geographical

Question 26

Contextual

Answer 26

KLM ad after you visit a travel website/ or travel blog: Content of your landing page is the basis)

Question 27

2 Retargeting:

Answer 27

Zalando ad after visiting Zalando website: you get the ad at some point after you visit brand’s webpage

Question 28

Behavioral :

Answer 28

Car insurance ad after searching to buy a new car: Your search-keyword/queries are the basis for personalization

Question 29

4 Geographical

Answer 29

Ajax ad only for Amsterdam area (or push notification of a mall in the proximity of that mall)

Question 30

Dynamic (Multidimensional) Targeting

Answer 30

Combines and real-time uses: search + previous visit/search on different website (factors given above)

Question 31

difference between Contextual and Behavioral targeting:

Answer 31

Behavioral: mainly based on recent search & click behavior. Search queries and clicks (visits) is the base of targeting.
Contextual: based on the context of the websites visited. The content (thema, tags, keywords) on the visited website is the basis of targeting.

Question 32

what is the most effective targeting type for same day ad exposure

Answer 32

CONTEXTUAL personalized targeting is the most effective at same-day ad exposure.
Retargeting is found to be less effective. C

Question 33

CONTEXTUAL personalized targeting is the most effective at same-day ad exposure.
Retargeting is found to be less effective. Can you tell why?

Answer 33

In Retargeting those people are targeted who visited the same website before – but doesn’t that also mean they did not find what they were looking fo

Question 34

static retargeting

Answer 34

a small group of fixed ads are created and serverd to groups of people depending on the page they vistied on your site

Question 35

dynamic retargeting

Answer 35

personalized ads are dynamically generated fore each individual, based on shopper behaviour

Question 36

what works better and when in cj dynamic or static retargeting

Answer 36

The research finds overall dynamic retargeted ads are, on average, less effective than their generic equivalents.
However, when consumers have more evolved (further stage/detailed) browsing behavior (e.g., visiting review websites), dynamic ads no longer underperform and even may outperform in comparison to generic ads.

Question 37

to best reach customers marketing managers should

Answer 37

managers should be aware of the multistage nature of consumers’ decision processes and vary advertising along these stages.

Question 38

pro and con ads shown often

Answer 38

n increase brand-ad recognition but might annoy users– and effect Click Through rates.
Higher ad frequency and higher ad recency relate to a LOWER CTRs,