Reading Passage Question
As Internet marketing has matured, it has driven two trends: a narrower focus on pitching specific consumer groups and a more robust effort to measure the outcomes of marketing campaigns. In the pre-Internet world,advertisers were content to pay for television commercials whose audience was relatively broad and whose effect was not easily quantifiable. While a company might use viewership ratings to get general data about the size and demographics of the audience for its commercials, there was no way to measure the extent to which these commercials translated into actual sales.
In contrast, many companies are now moving their marketing dollars away from traditional advertising outlets towards Internet-based campaigns that can target specific consumer groups and quantify the return on marketing investments. For example, pay-per-click search engines allow companies to pay for small text advertisements that are displayed only when users search for specific words relevant to the products and services sold by that company. A company is charged only when a consumer clicks on the ad and is directed to the company’s website, thereby ensuring that the company’s advertising dollars are spent capturing consumers that demonstrate some interest in its offerings. Further, using sophisticated web-analytic technology, companies can track a consumer’s online behavior and determine the exact amount of any online purchases made.
Though hailed as more cost-effective, Internet advertising has its limits. Proponents of print media argue that newspaper ads more effectively promote brand awareness and thereby provide better value. Further, fraud, intense competition, and the rise of ancillary services—such as firms that companies must hire to navigate complex webtracking tools—render Internet marketing more costly than some companies realize.
Solution and Explanation
- Each of the following can be inferred from the passage as a possible consequence of the rise of Internet marketing EXCEPT
(A) a decrease in the percentage of marketing dollars spent on television advertising
(B) an increased emphasis on measuring the specific outcomes of ad campaigns
(C) the appearance of new marketing-related service firms
(D) a decreased emphasis on “brand awareness” as a major marketing goal
(E) the emergence of “pay-per-click” search engines
Answer: D
Explanation: Option A can be inferred from the passage’s first paragraph. It states, “In the pre-Internet world,advertisers were content to pay for television commercials whose audience was relatively broad….these commercials translated into actual sales.” Option B can be inferred from the passage’s 2nd paragraph. Option C can be inferred. The beginning states, since the maturity of internet marketing, it has driven two trends.- a narrower focus on pitching specific consumer groups and a more robust effort to measure the outcomes of marketing campaigns. The following paragraph states companies now are shifting from traditional advertising to new methods of the internet based marketing dollars. Option E can be inferred. “Pay-per-click search engines allow companies to pay for small text advertisements that are displayed. Only when users search for specific words relevant to the products and services sold by that company.”
Option D however can not be inferred from the passage. Therefore, it is the correct choice option.
- The author of the passage would be most likely to agree with which of the following statements?
(A) Companies should invest their marketing dollars only in campaigns that can target very specific consumer groups.
(B) Traditional advertising outlets are usually not worth the cost for large companies.
(C) Companies can significantly decrease their overall marketing expenditures by shifting to the use of pay-per-click search engines.
(D) For companies that place a premium on precisely measuring the return on their advertising investment, Internet ads will likely be more effective than traditional outlets.
(E) Contrary to popular belief, advertising in traditional outlets is actually less expensive than advertising on the Internet.
Answer: D
Explanation: The passage's author provides the facts in a reasonably impartial manner. The author outlines current advertising trends in the opening paragraph. The author then goes into depth about some advantages of these trends in the second paragraph before going into detail about some drawbacks in the last paragraph. The tone of the paragraph is descriptive rather than prescriptive. The author never expresses her view on the trends, therefore the appropriate response should avoid expressing strong ideas.
The correct choice is D. According to the paragraph, “many companies are now moving their marketing dollars away from traditional advertising outlets towards Internet-based campaigns. That can target specific consumer groups and quantify the return on marketing investments.” Thus, it is evident from the author's perspective that one of the main benefits of Internet-based campaigns over conventional advertising venues is effective measurement.
- Which of the following can be inferred from the passage about the use of pay-per-click search engines ads?
(A) Most consumers that respond to these ads translate directly into paying customers.
(B) Companies will incur relatively little cost for ads that attract minimal interest from consumers.
(C) Companies with the most impressive websites will draw the most attention to their ads.
(D) Companies with the best brands benefit the most from the ads.
(E) Companies that use these ads always have webanalytic technology on their websites.
Answer: B
Explanation: The second paragraph of the passage mentions an example of pay-per-click.
As stated, “pay-per-click search engines allow companies to pay for small text advertisements that are displayed. Only when users search for specific words relevant to the products and services sold by that company. A company is charged only when a consumer clicks on the ad and is directed to the company’s website. Thereby ensuring that the company’s advertising dollars are spent capturing consumers that demonstrate some interest in its offerings. Further, using sophisticated web-analytic technology, companies can track a consumer’s online behaviour and determine the exact amount of any online purchases made.”
- The third paragraph of the passage serves to
(A) point out possible disadvantages of Internet advertising
(B) demonstrate the cost-effectiveness of Internet advertising
(C) argue against proponents of print media
(D) provide further detail on the specific example mentioned in the second paragraph
(E) contrast newspaper ads with television commercials
Answer: A
Explanation: The passage’s third paragraph points out the disadvantages that come along with internet advertising. It states, “Internet advertising has its limits. Proponents of print media argue that newspaper ads more effectively promote brand awareness and thereby provide better value. Further, fraud, intense competition, and the rise of ancillary services—such as firms that companies must hire to navigate complex web. Tracking tools—render Internet marketing more costly than some companies realise.”
- According to the passage, advertisers typically can obtain data that estimates each of the following EXCEPT:
(A) the number of people watching a company’s television commercial
(B) the ratio of women to men watching a company’s television commercial
(C) the dollar amount of online purchases made by a consumer arriving at a company’s website through a pay-per-click advertisement
(D) the rate charged for a specific pay-per-click advertisement
(E) the cost of fraud associated with Internet marketing
Answer: E
Explanation: The passage mentions a number of methods through which marketers might gauge the success of their advertising initiatives. The right response option will point out a fact that, in light of the passage's contents, businesses are unable to conclusively determine.
According to the paragraph, fraud is one reason why “Internet marketing is more costly than some companies realise.” It is never stated in the paragraph that businesses can calculate the cost of this deception. Furthermore, the fact that businesses refuse to acknowledge fraud as a significant expense raises. The possibility that they lack readily available data that would enable them to quantify this.
- One example of the “traditional advertising outlets” referred to in the second paragraph is
(A) pay-per-click search engines
(B) online newspapers
(C) television
(D) simple websites
(E) online auctions
Answer: C
Explanation: Television is one of the "traditional advertising outlets" mentioned in the second paragraph. Advertisers were happy to pay for television advertising with a reasonably wide audience and an imprecise impact, as was said in the opening paragraph. There was no method to gauge the degree to which these advertising converted into actual sales. Although a firm might utilise viewing numbers to obtain broad information about the size and demographics of the audience for its commercials. As a result, a lot of businesses are shifting their marketing budgets from conventional advertising channels to Internet-based campaigns. That may target particular customer segments and calculate the return on marketing spending.
“As Internet marketing has matured, it has driven two trends: a narrower’- is a GMAT reading comprehension passage with answers. Candidates need a strong knowledge of English GMAT reading comprehension.
This GMAT Reading Comprehension consists of 6 comprehension questions. The GMAT Reading Comprehension questions are designed for the purpose of testing candidates’ abilities in understanding, analyzing, and applying information or concepts. Candidates can actively prepare with the help of GMAT Reading Comprehension Practice Questions.
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