Social Media Advertising Risk Assessment & Management 4

Question 1

A social media platform suddenly changes its algorithm, causing your ad ROAS to drop 60%. This is an example of which type of risk?

Accepted Answer

Platform dependency risk

Answer

Platform dependency risk occurs when algorithm or policy changes by a third-party platform significantly disrupt your advertising performance.

Question 2

What is 'audience overlap' risk in social media advertising?

Accepted Answer

Multiple ad sets competing against each other for the same users, inflating costs

Answer

Audience overlap causes your own ad sets to bid against each other in the auction, artificially raising costs and reducing efficiency.

Question 3

A data breach exposes customer PII collected through your social media lead gen ads. What is the PRIMARY risk category?

Accepted Answer

Data privacy and regulatory risk

Answer

Exposure of PII triggers data privacy regulations like CCPA and GDPR, creating significant legal liability and regulatory penalties.

Question 4

What is 'dark post' risk in social media advertising?

Accepted Answer

Unpublished targeted ads that bypass public brand scrutiny and may target protected groups discriminatorily

Answer

Dark posts (unpublished page posts used as ads) have been used for discriminatory micro-targeting, as seen in historic political advertising controversies.

Question 5

Which risk management approach involves setting maximum daily budget caps in social ad campaigns?

Accepted Answer

Risk mitigation

Answer

Setting budget caps directly reduces potential financial loss from overspending, making it a risk mitigation (reduction) strategy.

Social Media Advertising Practice Test

Social Media Advertising Practice Test

Social Media Advertising Risk Assessment & Management 4