Question 1

The term "content adjacency" refers to:
A) placing advertisements to reach consumers based on various traits such as demographics and purchase history.
B) a technique used by online publishers to increase the effectiveness of their campaigns.
C) advertisements that are targeted based on a user's query.
D) a concern that an advertisement will run near offensive material, embarrassing an advertiser and/or degrading their products or brands.
E) problems associated with advertisements that run before a user arrives at the home page of a website.

Accepted Answer

Content adjacency refers to the placement of advertisements near relevant content, but it also includes the concern that an advertisement may be placed next to inappropriate, offensive, or controversial content. This could harm the reputation of the advertiser or their brand.

Question 2

Users tend to have more focused intent (often focused on purchase decision-making) when using Google as compared to Facebook.

Accepted Answer

Google is a search engine primarily used for finding information, including product reviews and shopping options. Users typically turn to Google when they have a specific question or need and are more likely to have a focused intent related to purchase decision-making. Facebook, on the other hand, is a social networking platform that users typically use for entertainment and communication rather than shopping or purchase decision-making.

Question 3

For years, which of the following is the only major media category that has seen an increase in spending?
A) Online advertising
B) Radio jingles
C) Television ads
D) Print media
E) Telemarketing

Accepted Answer

Online advertising is the only major media category that has seen an increase in spending in recent years, as more and more businesses shift their advertising budgets towards digital channels.

Question 4

The bulk of Facebook's revenue comes from:
A) data aggregation services.
B) application development.
C) subscription fees.
D) data harvesting.
E) advertising.

Accepted Answer

The bulk of Facebook's revenue comes from advertising. Facebook's advertising model is based on targeting specific user demographics and interests, and selling ad space to advertisers who want to reach those users. This has made Facebook one of the most popular platforms for digital advertising, and accounts for the majority of the company's revenue.

Question 5

In terms of generating ad revenue on a CPM basis, information and news-oriented sites do much better than social networking sites.

Accepted Answer

Information and news-oriented sites typically have higher engagement and more focused audiences, leading to higher CPM rates for advertisers. Social networking sites have a wide variety of content and user behavior, making it harder for advertisers to target specific audiences effectively.

Question 6

Third-party Web sites can choose to accept a user's Facebook credentials to allow the user to access their content.

Accepted Answer

This is true. Facebook offers the option for third-party websites to allow users to log in using their Facebook credentials.

Question 7

Facebook enjoys significantly higher click-through rates than Google.

Accepted Answer

Google typically has higher click-through rates (CTR) for its ads compared to Facebook, as Google ads often capture users at the moment of their search intent, leading to higher engagement and CTR.

Question 8

Most Facebook applications are focused on businesses and educational services.

Accepted Answer

This statement is false. While some Facebook applications are focused on businesses and education services, there are many others that serve a variety of purposes, such as entertainment, communication, and social networking.

Question 9

WeChat has proven to be a successful app-based platform in China. What does WeChat offer? How has Facebook tried to expand Messenger into a platform?

Accepted Answer

The answer of WeChat has proven to be a successful...

Question 10

Advertisers have relatively low performance on Facebook because they must rely entirely on Facebook-provided data. Ads on Facebook cannot be targeted using any data collected outside of Facebook.

Accepted Answer

This statement is false. While advertisers can use Facebook-provided data to target ads on Facebook, they also have the option to use their own data (such as email lists, website visitor data, etc.) to create custom audiences for targeting. Facebook also offers a pixel tracking tool that allows advertisers to track user behavior on their own website and use that data to target ads on Facebook.

Question 11

Facebook has offered a system where Web site operators can choose to accept a user's Facebook credentials for logging in. Web site operators appreciate this feature because:
A) they can charge users for accessing their content and hence, generate revenue.
B) they can afford to spend less on Web site maintenance.
C) users can access websites without creating an account, reducing a potential barrier to customer acquisition.
D) Facebook's advertising programs offer better revenue for viewed content.
E) they can associate their offerings with the Facebook brand.

Accepted Answer

With the option to accept Facebook credentials for logging in, users can access the website without needing to create a separate account. This reduces a potential barrier to customer acquisition, making it easier for users to access the content and potentially increasing traffic to the website.

Question 12

When others take advantage of a user or service without providing any sort of reciprocal benefit it is called a _____.

Accepted Answer

The answer of When others take advantage of a user...

Question 13

Why is A/B Testing harder on mobile?

Accepted Answer

The answer of Why is A/B Testing harder on mobile?...

Question 14

_____ is a term that refers to a closed network or single set of services controlled by one dominant firm.
A) Walled garden
B) Cloud
C) Network effects
D) Free rider problem
E) Localization

Accepted Answer

A walled garden is a term used to refer to a closed network or single set of services controlled by one dominant firm. It is a strategy employed by companies to create an ecosystem in which users are bound to a specific set of products or services. This type of network is often used in industries such as telecommunications, where companies control which devices and services can be used on their network.

Question 15

Why is Facebook's Open Graph series of APIs for third-party websites significant for the firm?

Accepted Answer

The answer of Why is Facebook's Open Graph series of...

Question 16

Facebook's growing dominance has given rise to the fear that if increasingly large parts of the Web reside inside a single service, innovation, competition, and exchange may suffer.

Accepted Answer

Facebook's growing dominance poses a threat to innovation, competition, and exchange on the web as more and more of the internet's functions come under the control of a single entity.

Question 17

Firms spend more advertising online than they do on radio and magazine ads.

Accepted Answer

According to a report from eMarketer, in 2019 firms spent more on digital advertising than traditional advertising such as radio and magazines.

Question 18

Which of the following issues raises advertiser concerns on promoting products and services on social networking sites?
A) Low marketing budgets
B) Inflation
C) DNS cache poisoning
D) Phishing
E) Content adjacency

Accepted Answer

Content adjacency, or the risk of an advertiser's ad appearing next to inappropriate or offensive content on social networking sites, is a top concern for advertisers. This can damage the brand's reputation and cause a loss of trust from customers. Low marketing budgets, inflation, DNS cache poisoning, and phishing are all issues that may impact advertising in general, but they are not specifically related to promoting products and services on social networking sites.

Question 19

Developers who make applications create _____ that have the potential to add value to Facebook beyond what the firm itself provides to its users.
A) switching costs
B) distribution channels
C) one-sided markets
D) complementary benefits
E) private equity shares

Accepted Answer

Complementary benefits refer to the additional value created by third-party developers through their applications, which can enhance the user experience on Facebook. This can include things like games, productivity tools, and communication platforms. These complementary benefits can help increase user engagement and stickiness on the platform, providing value to both Facebook and its users.

Question 20

_____ refer to programming hooks, or guidelines, published by firms that tell other programs how to get a service to perform a task such as sending or receiving data.

Accepted Answer

The answer of _____ refer to programming hooks, or guidelines,...

Quiz 11: Facebook: Building a Business From the Social Graph

The term "content adjacency" refers to:

Users tend to have more focused intent (often focused on purchase decision-making) when using Google as compared to Facebook.

For years, which of the following is the only major media category that has seen an increase in spending?

The bulk of Facebook's revenue comes from: