A business hopes to generate large online sales through posting ads on social networking sites but only wants to pay when an ad actually generates a sale.That firm should use the performance measure of
A)"cost per thousand," and pay $0.50 for every time an ad loads,up to $100 per month.
B)a "negotiated measure," and pay $100 to post their ad for two weeks.
C)"cost per click," and pay $0.50 for every visitor who clicks on the ad and goes to their website.
D)"cost per action," and pay $50 for every purchase that originated from an ad on the site.
E)"cost per liker," and pay $1.00 for every visitor who likes the advertised product.

Question

Quizplus · Accepted Answer

The best performance measure for this business would be "cost per action," which means they would pay for each purchase that is made as a direct result of clicking on their ad. This ensures that the business only pays for actual sales, rather than just clicks or views. Paying $50 for every purchase may seem steep, but it ensures that the business is only paying for actual results and can potentially generate a high return on investment.

A Business Hopes to Generate Large Online Sales Through Posting