The Return on Earned Media Model

question 5

Multiple Choice

The return on earned media model:

• A) takes the gross revenue estimated minus the cost of the social media advertising program divided by the cost of the program.
• B) employs statistical analysis to determine how sales trends shifted according to the timing of the social media marketing.
• C) calculates the change in the probability of purchase based on the exposure.
• D) calculates the difference between the cost to purchase a display ad on a site and the cost of the social media advertising program divided by the cost of the program.
• E) assigns a financial value to the resources we use to execute a strategy, measure financial outcomes, and calculate the ratio between inputs and outcomes.

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Definitions:

Money Supply

The money supply is the total amount of money—cash, coins, and balances in bank accounts—in circulation within a country's economy at a given time.

Discount Rates

Discount rates refer to the interest rate charged to commercial banks and other financial institutions for loans received from the central bank's discount window.

Federal Funds Rate

The interest rate banks and other depository institutions charge one another on overnight loans made out of their excess reserves.

Borrowed Reserves

Funds that commercial banks borrow from the central bank to meet reserve requirements, often indicative of a tight monetary policy.