Which advertising strategy is most likely to trigger a payment only when a specific action is taken?

Prepare for your TAMU ISTM210 Exam 2 with our comprehensive quiz. Study using flashcards and multiple choice questions, each with detailed explanations. Ensure you're ready for the exam!

Cost per Action (CPA) is an advertising strategy where advertisers pay only when a specific action is taken by a user. This action might include activities such as making a purchase, signing up for a newsletter, filling out a form, or downloading an app. The strategic advantage of CPA is that it aligns the costs directly with performance; advertisers are only charged when a defined conversion occurs. This makes it a cost-effective method for many businesses, particularly those focused on maximizing their return on investment.

In contrast, Cost Per Click (CPC) charges advertisers for each click on their ad, regardless of what the user does afterward, meaning that while it drives traffic, it doesn’t guarantee a specific action will be taken. Native Advertising blends advertisements into the content of a site, aiming to provide a more seamless experience; however, it doesn't inherently rely on triggering payment upon a specific user action. Lastly, Banner Advertising typically involves paying for ad space and impressions rather than tying the financial commitment to a specific action taken by a user.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy