Final Answer:
In the case of CPC (cost per click), advertisers are charged for ad placement whether or not a user clicks on it is 2) False.
Step-by-step explanation:
In the case of CPC (cost per click), advertisers are only charged when a user clicks on their ad. The cost is calculated by dividing the total cost of the ad campaign by the number of clicks received.
For example, if an advertiser pays $100 for an ad and it receives 50 clicks, the CPC would be $2 ($100/50). This means that advertisers are not charged for ad placement unless a user interacts with the ad by clicking on it. Therefore, the statement “advertisers are charged for ad placement whether or not a user clicks on it” is false.
CPC is a widely used model in online advertising where advertisers only pay when their ad is clicked, making it a cost-effective method as they are charged based on user engagement.
This model ensures that advertisers are only paying for actual interactions with their ads, rather than just for the placement itself. It also provides a clear measure of the effectiveness of an ad campaign, as advertisers can track the number of clicks and calculate the cost per click to assess their return on investment.
In contrast, models such as CPM (cost per mille/thousand impressions) charge advertisers based on the number of times their ad is shown, regardless of whether users engage with it.
This makes CPC a more performance-driven and targeted approach, aligning with the goal of reaching potential customers who are actively interested in the advertised products or services.
Correct option is 2) False