Chapter 18 Case StudyFacebook: Advertisings Troubling Future

TRUE/FALSE
1. As with newspapers, television, and other forms of traditional media, marketing on Facebook
generally takes the form of mass-media information transmission.
ANS: F

Whereas traditional marketing media offer a mass-media method of interacting with

consumers, social media like Facebook offer more one-to-one ways to meet consumers.
PTS: 1
OBJ: 18-1
KEY: CB&E Online/Computer

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level I Knowledge

2. Before embarking on Facebook advertising campaigns, corporations big and small should engage in
listening. Listening allows companies to understand Facebooks advertising landscape before they
enter it.
ANS: T
PTS: 1
KEY: CB&E Model Strategy

OBJ: 18-2
TOP: AACSB Reflective Thinking
MSC: BLOOMS Level I Knowledge

3. Despite the loss of GMs advertising, Forrester Research predicts that display advertising and

other forms of social media marketing will grow to more than 21 percent of spending by
2014.
ANS: T
PTS: 1
KEY: CB&E Model Online/Computer

OBJ: 18-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Level I Knowledge

4. Even if Facebook begins to lose substantial amounts of Web-based advertising revenue, it should
continue to focus on this type of marketing instead of developing a mobile marketing plan.
ANS: F

While much of the excitement in social media has been based on Web sites, much of
Facebooks future growth will lie in new technologies, particularly mobile and Smartphone
platforms.
PTS: 1
OBJ: 18-6
KEY: CB&E Model Strategy

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level I Knowledge

MULTIPLE CHOICE
1. Display advertising on Facebook is an example of:
a. owned media
b. earned media
c. paid media
d. publicity
e. all of the above
ANS: C

Ads purchased on Facebook are considered paid media since the brand is paying for the textbased or visual ad that shows up on the right hand side of Facebook profiles.

PTS: 1
OBJ: 18-2
KEY: CB&E Model Online/Computer

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension

2. To gauge the success of a Facebook advertising campaign, a company should track metrics tied to key

performance indicators. Which of the below is an example of such a metric?

click throughs to an external Web site

a.
b.
c.
d.
e.

a Facebook pages number of fans

the volume of consumer-created buzz

search engine rank and results
all of the above

ANS: E
All of these are examples of social media metrics that apply to a Facebook advertising campaign.
PTS: 1
OBJ: 18-3
KEY: CB&E Model Online/Computer

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension

3. A social media user who surfs Facebook and clicks on advertisements but does not create any content
herself is likely a:
a. creator
b. critic
c. collector
d. joiner
e. spectator
ANS: E
Spectators generally consume media, but do not create it themselves. 73 percent of social media

users function as spectators.

PTS: 1
OBJ: 18-4
KEY: CB&E Model Online/Computer

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension

4. If the studies conducted by Greenlight and comScore considered what was being said about

Facebooks advertising platform on various social media Web sites, they would be engaging in
what process?
a.
b.
c.
d.
e.

Social media monitoring

environmental scanning
identifying the target audience
product differentiation
developing earned media

ANS: A

Social media monitoring is the process of identifying and assessing what is being said about a
company, individual, product or brand.
PTS: 1
OBJ: 18-2
KEY: CB&E Model Strategy

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension

5. Which of the following statements should a marketing executive consider before deciding to invest in
Facebook advertising?
a. The rate of change in social media is astounding.
b. Facebooks growth is forecasted to slow by nearly half in 2013.

c. Inactives decreased from 44 percent in 2007 to only 18 percent in 2009.

d. Though GM pulled its ads from Facebook, Ford and Coca-Cola announced plans to

intensify their social media marketing.

e. All of the above
ANS: E

It is important for marketers entering social media to have as much information as possible.
Listening to customers and industry trends, as well as continually revising the social media
plan to meet the needs of the changing market are keys to successful social media marketing.
PTS: 1
OBJ: 18-7
KEY: CB&E Model Strategy

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension

6. Which of the following is not an important step when creating an effective Facebook advertising

campaign?
Set the objectives that the campaign should accomplish.
Examine trends and best practices in Facebook advertising.

a.
b.
c.
d.
e.

Identify the advertising campaigns target audience.

Ask friends and family to click your ads to boost your campaigns metrics.

Implement and monitor the campaign.

ANS: E

Artificially inflating your campaigns metrics is not one of the six stages involved in creating
an effective social media plan. In fact, intentionally altering metrics could distort your
campaigns results, distorting the metrics usefulness.
PTS: 1
OBJ: 18-7
KEY: CB&E Model Online/Computer

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension