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Marketing executives in television work with a relatively stable adver

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Marketing executives in television work with a relatively stable adver  [#permalink]

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New post Updated on: 09 Oct 2019, 03:34
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Marketing executives in television work with a relatively stable advertising medium. In many ways, the television ads aired today are similar to those aired two decades ago. Most television ads still feature actors, still run 30 or 60 seconds, and still show a product. However, the differing dynamics of the Internet pose unique challenges to advertisers, forcing them to adapt their practices and techniques on a regular basis.

In the early days of Internet marketing, online advertisers employed banner and pop-up ads to attract customers. These techniques reached large audiences, generated many sales leads, and came at a low cost. However, a small number of Internet users began to consider these advertising techniques intrusive and annoying. Yet because marketing strategies relying heavily on banners and pop-ups produced results, companies invested growing amounts of money into purchasing these ad types in hopes of capturing market share in the burgeoning online economy. As consumers became more sophisticated, frustration with these online advertising techniques grew. Independent programmers began to develop tools that blocked banner and pop-up ads. The popularity of these tools exploded when the search engine Google, at the time an increasingly popular website fighting to solidify its place on the Internet with giants Microsoft and Yahoo, offered free software enabling users to block pop-up ads. The backlash against banner ads grew as new web browsers provided users the ability to block image-based ads such as banner ads. Although banner and pop-up ads still exist, they are far less prominent than during the early days of the Internet.

A major development in online marketing came with the introduction of pay-per-click ads. Unlike banner or pop-up ads, which originally required companies to pay every time a website visitor saw an ad, pay-per-click ads allowed companies to pay only when an interested potential customer clicked on an ad. More importantly, however, these ads circumvented the pop-up and banner blockers. As a result of these advantages and the incredible growth in the use of search engines, which provide excellent venues for pay-per-click advertising, companies began turning to pay-per-click marketing in droves. However, as with the banner and pop-up ads that preceded them, pay-per-click ads came with their drawbacks. When companies began pouring billions of dollars into this emerging medium, online advertising specialists started to notice the presence of what would later be called click fraud: representatives of a company with no interest in the product advertised by a competitor click on the competitor's ads simply to increase the marketing cost of the competitor. Click fraud grew so rapidly that marketers sought to diversify their online positions away from pay-per-click marketing through new mediums.

Although pay-per-click advertising remains a common and effective advertising tool, marketers adapted yet again to the changing dynamics of the Internet by adopting new techniques such as pay-per-performance advertising, search engine optimization, and affiliate marketing. As the pace of the Internet's evolution increases, it seems all the more likely that advertising successfully on the Internet will require a strategy that shuns constancy and embraces change.

1) The author implies what about the future of pay-per-performance advertising?

A) Although it improves on pay-per-click advertising, it is still vulnerable to click fraud
B) It will one day become extinct as Internet users discover drawbacks with it
C) Internet users will develop free software to block its effectiveness
D) It will eventually become less popular with advertisers as the Internet evolves and drawbacks emerge
E) It will not face drawbacks due to its differing approach to online marketing

Correct Answer: D


2) Which of the following most accurately states the main idea of the passage?

A) Although pay-per-click advertising remains a wide-spread and effective online advertising medium, its popularity is likely to diminish as the Internet evolves.
B) Internet advertising is not well received by Internet users, causing independent programmers to subvert advertisers.
C) Unlike the television, the Internet has experienced dramatic changes in short periods of time.
D) Unlike the television, the Internet has evolved rapidly, forcing online marketers to develop new advertising strategies and mediums.
E) The pace of the Internet’s evolution is increasing and will only increase in the future.

Correct Answer: D


3) According to the passage, which of the following best describes the current status of pop-up ads?

A) Widely used
B) Less popular now than at earlier times
C) A frequent target of click fraud
D) Non-existent due to pop-up blockers
E) Increasingly popular due to search engines

Correct Answer: B


4) According to the passage, which of the following best describes the practice of click fraud?

A) Clicking on the banner advertisements of rival companies
B) Using software to block advertisements
C) Utilizing search engine optimization to visit the pages of competitors
D) Fraudulently purchasing products online
E) Clicking on the pay-per-click ads of competitors
Correct Answer: E



Source: Platinum GMAT
Difficulty Level: 600

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Originally posted by kingb on 06 Nov 2012, 19:19.
Last edited by SajjadAhmad on 09 Oct 2019, 03:34, edited 2 times in total.
Updated - Complete topic (879).
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Re: Marketing executives in television work with a relatively stable adver  [#permalink]

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New post 17 Feb 2019, 04:12
Official Explanation


1) The author implies what about the future of pay-per-performance advertising?

Difficulty Level: 600

Explanation

The central theme of the passage is that the Internet is evolving rapidly and current advertising mediums will eventually be replaced (albeit not completely) by new mediums. Just after mentioning pay-per-performance advertising, the author concludes by saying "As the pace of the Internet’s evolution increases, it seems all the more likely that advertising successfully on the Internet will require a strategy that shuns constancy and embraces change."

A. There is no mention of click-fraud applying to pay-per-performance advertising. Since click-fraud does not apply to all online advertising methods and no description of pay-per-performance advertising is given, it is not possible to infer that click-fraud applies to pay-per-performance advertising.

B. The passage never asserts that Internet ad strategies become "extinct." Rather it asserts that they dwindle in popularity as Internet users adapt and the ad strategies become less effective.

C. Developing software to block ads referred to the problem with pop-up and banner advertisements. The article never implied that this problem existed with all Internet advertising strategies.

D. Since the main point of the article is that the Internet evolves and online advertising strategies change, it is reasonable to conclude that pay-per-performance advertising will have a similar fate as the other advertising strategies mentioned in the passage: declining popularity over time.

E. Nothing in the passage supports the idea that an online advertising strategy will remain popular indefinitely even as the Internet evolves rapidly—this contradicts the main point of the passage.

ANSWER: D


2) Which of the following most accurately states the main idea of the passage?

Difficulty Level: 600

Explanation

A main idea runs throughout the entire passage. Consequently, an idea that appears in one paragraph only to disappear in another is not the main idea. In this passage, the first paragraph introduces the main theme and the remaining paragraphs develop it by providing examples. In many ways, the last sentence of the first paragraph serves as a thesis statement indicating the main thrust of the article ("the differing dynamics of the Internet pose unique challenges to advertisers, forcing them to adapt their practices and techniques on a regular basis.")

A. While the passage does make these statements about pay-per-click advertising, the passage only discusses pay-per-click advertising in one paragraph. This answer represents an example that the author uses to further the main point of the passage. But, it is not the main point itself.

B. Although the changing of Internet marketing strategies is a constant theme, nowhere does the article focus as its main point on the efforts of independent programmers. Instead, the passage focuses on the efforts of advertisers to adapt to changes. Moreover, this answer fails to make sense of the introduction and conclusion.

C. Although this statement is true, it is far too broad. The central theme of the passage (given in the sentence "forcing them to adapt their practices and techniques on a regular basis") is not reflected in this answer, which omits any reference to marketing and advertising strategies.

D. This statement encapsulates the author’s point in each paragraph: the evolution of the Internet is forcing advertisers to change their strategies rapidly. The phrase "unlike the television" ties into the introductory point.

E. The article does not discuss at great length the speed at which the Internet is evolving. It simply notes that the Internet is evolving. Moreover, this answer omits any reference to advertising, which plays a central role in the piece.

ANSWER: D


3) According to the passage, which of the following best describes the current status of pop-up ads?

Difficulty Level: 600

Explanation

The crucial sentence in the passage is: "Although banner and pop-up ads still exist, they are far less prominent than during the early days of the Internet."

A. There is no support for this in the passage. It is implicitly contradicted by the words "far less prominent."

B. This answer reflects the statement in the passage.

C. Pay-per-click advertising is a target of "click fraud," not banner ads, which suffered from blocking programs.

D. The passage states that pop-ups "still exist."

E. The passage states that pay-per-click advertising—not pop-ups—is more popular due to search engines.

ANSWER: B


4) According to the passage, which of the following best describes the practice of click fraud?

Difficulty Level: 500

Explanation

The pertinent sentence from the passage is: "pay-per-click ads came with their drawbacks. When companies began pouring billions of dollars into this emerging medium, online advertising specialists started to notice the presence of what would later be called “click fraud”: representatives of a company with no interest in the product a competitor advertised clicked on the competitor's ads simply to increase the marketing cost of the competitor."

A. Click-fraud pertains to pay-per-click advertising, not banner advertising.

B. This answer describes pop-up blockers, not click fraud.

C. Click-fraud pertains to pay-per-click advertising, not search engine optimization.

D. There is no mention in the article of this practice.

E. This matches the description of click-fraud in the passage.

ANSWER: E


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Re: Marketing executives in television work with a relatively stable adver  [#permalink]

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New post 08 Sep 2018, 22:59
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Re: Marketing executives in television work with a relatively stable adver  [#permalink]

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New post 09 Sep 2018, 00:06
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The passage talks about the changes which have taken place in advertising techniques over the years and describes how internet has been used in this regard.
1. The author talks about the drawbacks of the advertising methods- pop up and pay-per-click ads. He also talks about how their popularity decreased because of certain shortcomings they had. In the last sentence of last para he concludes -" it seems all the more likely that advertising successfully on the Internet will require a strategy that shuns constancy and embraces change"
So D should be the correct choice.
2.As stated above the internet has evolved rapidly forcing changes in advertising strategies frequently and this is the primary focus of author in the passage and hence is the main point. D should be the correct choice.
3. From 3rd para we can conclude that with introduction of pay-per-click ads the popularity of pop-up ads decreased.B is the correct choice.
4. In 3rd para the author clearly states -
"click fraud: representatives of a company with no interest in the product advertised by a competitor click on the competitor's ads simply to increase the marketing cost of the competitor" So E is the correct choice.
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Re: Marketing executives in television work with a relatively stable adver   [#permalink] 09 Sep 2018, 00:06
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