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Exam 2: Business of Advertising

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Question 1

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The term media commonly describes:

A) Specialty advertising items
B) Interactive TV
C) Newspapers and magazines
D) Direct mail
E) All of the above

F) C) and D)
G) B) and E)

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Question 2

Multiple Choice

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Which of the following businesses is LEAST likely to use local advertising?

A) A candidate for city commissioner
B) Scottish Rite Hospital for children
C) Paperback Corner, a store where customers can swap books
D) Microsoft
E) PetsMart in Chicago

F) All of the above
G) D) and E)

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Question 3

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What is the typical agency markup for services provided to a client?

If the LRT agency were to buy a two-page ad in Paulding Community magazine for a builder that is planning on constructing a 500-home subdivision in the county, the ad would cost $5,000. How much money would the agency send the publication to pay for the ad?

There are several trends within the advertising industry. Some influential advertisers are refusing to pay using the commission approach. What approach do they want agencies to use?

To which type of advertising supplier is the Web-design house is the most similar?

Assume the Rowe-Elliot Agency bought an ad on the back cover of Western Horseman for a manufacturer of boot. The ad cost $8,500. How much money would the agency bill the boot manufacturer for the ad?

As with any good writing, copy should look like it was written with ease.

One of the worst sins in an ad agency is a missed deadline. Which department within the agency is responsible for preventing this from happening?

According to the Checklist for Creating Local Advertising, it would be unwise to: