Display Advertising Display Advertising MCQ 3 — Questions and Answers
Question 1: In a second-price auction for display inventory, the winning bidder typically pays what amount?
- Their full bid amount
- The publisher's list price
- Slightly more than the second-highest bid (Correct answer)
- The average of all bids
Correct answer: Slightly more than the second-highest bid
In a second-price auction the winner pays the second-highest bid plus a small increment, often $0.01.
Question 2: Which technique places ads on pages based on the page's content and keywords rather than the user's identity or history?
- Contextual targeting (Correct answer)
- Cross-device retargeting
- Behavioral targeting
- Lookalike audience targeting
Correct answer: Contextual targeting
Contextual targeting matches ads to page content, requiring no user-level data or cookies.
Question 3: A campaign spent $2,000 and generated 50 conversions. What is the CPA?
- $400
- $4
- $40 (Correct answer)
- $25
Correct answer: $40
CPA = $2,000 / 50 conversions = $40 per acquisition.
Question 4: What does 'frequency capping' accomplish in a display campaign?
- Restricts the campaign to certain hours of the day
- Caps the maximum CPM the advertiser will pay
- Limits the total number of publishers used
- Limits how many times one user sees the ad in a set period (Correct answer)
Correct answer: Limits how many times one user sees the ad in a set period
Frequency capping restricts ad exposures per user to prevent fatigue and wasted impressions.
Question 5: Which of the following is a 'view-through conversion'?
- A user converts after a paid search click
- A user watches 100% of a video ad
- A user clicks an ad and converts immediately
- A user sees a display ad, does not click, but later converts on the site (Correct answer)
Correct answer: A user sees a display ad, does not click, but later converts on the site
View-through conversions credit impressions that were seen but not clicked before an eventual conversion.
Question 6: In header bidding, what advantage do publishers gain compared to a traditional waterfall setup?
- Fraudulent bids are automatically eliminated
- Ads load faster because only one bidder is called
- Multiple demand sources bid simultaneously, increasing competition and yield (Correct answer)
- Advertisers are guaranteed the lowest possible price
Correct answer: Multiple demand sources bid simultaneously, increasing competition and yield
Header bidding lets many demand partners bid at once instead of sequentially, typically raising publisher revenue.
Question 7: Which metric best measures brand impact of a display campaign rather than direct response?
- Cost per click
- Bounce rate
- Click-through rate
- Brand lift (change in awareness or recall) (Correct answer)
Correct answer: Brand lift (change in awareness or recall)
Brand lift studies measure shifts in awareness, recall, or consideration attributable to ad exposure.
Display Advertising Display Advertising MCQ 3
In a second-price auction for display inventory, the winning bidder typically pays what amount?