Stukent Digital Marketing Certification Practice Exam

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Two advertisers achieve the same 1% CTR on their ads. Advertiser A bids $10 CPM while Advertiser B bids $1.50 CPC. Who will be awarded more impressions from the ad network?

Advertiser A because CPM bidding is preferred

Advertiser A because bids earn the ad network more money

Advertiser B because CPC bidding is preferred

Advertiser B because bids earn the ad network more money

The correct response highlights how bidding types influence impressions awarded by ad networks. Advertiser B bids using cost-per-click (CPC) at $1.50, which can lead to a higher chance of being awarded impressions than Advertiser A, who uses cost-per-thousand-impressions (CPM) at $10.

Ad networks typically optimize for engagement, favoring CPC because it indicates direct action is taken when users click on ads. This alignment with advertisers seeking measurable outcomes can result in higher ad revenues for the network compared to CPM, where payment is based solely on impressions, regardless of user engagement.

Therefore, even though both advertisers achieve the same click-through rate (CTR), the nature of CPC bidding means that Advertiser B's lower cost per click (compared to the CPM of Advertiser A) can be more advantageous in terms of the impression allocation prioritization by the ad networks.

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