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A business hopes to generate large online sales through posting ads on social networking sites but only wants to pay when an ad actually generates a sale. That firm should use the performance measure of:Multiple Choicecost per thousand, and pay 50 cents for every time an ad loads, up to $100 per month.a negotiated measure, and pay $100 to post its ad for two weeks.cost per click, and pay $1 for every visitor who clicks on the ad and goes to its website.cost per action, and pay $50 for every purchase that originated from an ad on the site.cost per like, and pay $1 for every unique visitor who likes the advertised product.

Question

A business hopes to generate large online sales through posting ads on social networking sites but only wants to pay when an ad actually generates a sale. That firm should use the performance measure of:Multiple Choicecost per thousand, and pay 50 cents for every time an ad loads, up to 100permonth.anegotiatedmeasure,andpay100 per month.a negotiated measure, and pay 100 to post its ad for two weeks.cost per click, and pay 1foreveryvisitorwhoclicksontheadandgoestoitswebsite.costperaction,andpay1 for every visitor who clicks on the ad and goes to its website.cost per action, and pay 50 for every purchase that originated from an ad on the site.cost per like, and pay $1 for every unique visitor who likes the advertised product.

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Solution

The firm should use the performance measure of: cost per action, and pay $50 for every purchase that originated from an ad on the site. This is because the firm only wants to pay when an ad actually generates a sale, which is exactly what cost per action (CPA) advertising is designed to do. CPA is a pricing model where the advertiser pays for a specified action - in this case, a sale.

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