Social Media Advertising Risk Assessment & Management 3

Question 1

What is 'click fraud' in social media advertising and why is it a risk?

Accepted Answer

Bots or competitors fraudulently clicking ads to drain your budget

Answer

Click fraud involves automated bots or malicious actors clicking ads to exhaust your budget without any genuine purchase intent.

Question 2

A social media ad campaign collects user data without proper consent disclosures. Which regulation is MOST likely violated in the US context?

Accepted Answer

CCPA (California Consumer Privacy Act)

Answer

The CCPA requires businesses to disclose data collection practices and give California consumers the right to opt out.

Question 3

What risk management strategy involves spreading ad spend across multiple social platforms?

Accepted Answer

Diversification

Answer

Diversifying across platforms reduces dependence on any single channel, protecting campaigns from platform-specific outages or policy changes.

Question 4

An influencer your brand hired for a paid partnership fails to disclose the sponsorship. Who bears legal risk under FTC guidelines?

Accepted Answer

Both the brand and the influencer

Answer

FTC guidelines hold both the brand (advertiser) and the influencer responsible for proper sponsorship disclosure in paid partnerships.

Question 5

What is the purpose of a social media advertising 'kill switch' protocol?

Accepted Answer

To instantly pause all ads in a crisis or PR emergency

Answer

A kill switch protocol allows teams to immediately halt all advertising activity during emergencies to prevent reputational or financial damage.

Social Media Advertising Practice Test