Chapter 13:
E-Marketing Communication: Paid Media
Review Questions
1. How has usage of internet advertising changed over the years? In light of this trend, how is
spending on internet advertising expected to change in the future?
Internet advertising in the United States began with the first series of banner ads on Hotwired.com in
1994. The ad received an amazing 30 percent click through. Compare this ratio to the less than 1
2. What is an online display ad and what are some of its standard formats?
3. What are some types of rich media ads, and what are their general advantages and
disadvantages?
Rich media ad formats include: the in-banner video ad, expandable/retractable ad, pop-up, pop-under,
floating ad, interstitial ad, wallpaper ad, trick banner, and map ad. All ads in this category are highly
4. Why does contextual advertising tend to produce higher click-through rates?
5. How does sponsored content help advertisers reach their audiences?
6. What three unique aspects of social network accounts, in large part, account for the expected
rise in spending in social media advertising?
7. What are some of the options advertisers have when they use Facebook, Twitter, LinkedIn, or
Second Life as paid media?
Facebook: Facebook ads can include interactive features, link to other brand content, and are very
easy to create. Advertisers simply upload an image and type the text right into the Facebook template.
Facebook offers excellent metrics to see how many people were presented the ad, and whether or not
they took an action, like clicking on a link. Furthermore, advertisers can set a maximum daily budget.
8. What issues are likely to affect the future of mobile advertising?
Mobile ads are a new area with great promise and many unanswered questions. Several major issues
9. How does keyword advertising differ from paid inclusion and directory submission?
10. Why must advertisers be concerned about both the effectiveness and efficiency of media buys?
In order for a media buy to be worthwhile, it must be both effective and efficient. To make an
11. Which types of paid media tend to be most effective at each stage of the B2B purchase funnel?
12. How and why would an advertiser measure efficiency according to CPM, CPA, and CPC?
Discussion Questions
13. The Lenovo Story. Do you think customers might be upset if they found out Lenovo was using
remarketing and keeping track of their behavior online? Why or why not?
14. The Lenovo Story. Identify at least five other types of paid media that might work for Lenovo,
including Facebook. Explain why each might be a good idea for this company.
Answers will vary. Possibilities include:
Facebook: Lenovo could potentially reach over 1 billion active members by advertising on the
Facebook social network, with over 50 percent of users logging in on any given day, according to
Facebook.com. Lenovo could also pursue narrower targeting to reach their well-defined markets, and
this can easily be done via member profile information.
15. Why do you think consumers have less trust in paid media than they do in earned media or
owned media?
16. Knowing that companies are always experimenting with new sizes and formats of online display
ads to attract user attention and break through clutter, why would the Interactive Advertising
Bureau continue to propose standard dimensions for display ads?
17. From the marketer’s perspective, what are the advantages and disadvantages of the types of
display ads listed in Exhibit 13.5? From the consumer’s perspective?
18. What ethical issues seem to be raised by the use of online sponsored content and product
placement? How would you recommend that a marketer improve transparency when it uses
such paid media?