Management Information System (MIS) Practice Exam

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What impact does a high click-through rate have on online advertising effectiveness?

Indicates poor ad placement
Suggests higher ad relevance
Denotes low visitor engagement
Represents ineffective marketing strategy

The correct answer is: Suggests higher ad relevance

A high click-through rate (CTR) indicates a higher ad relevance, which is crucial for online advertising effectiveness. When users click on an ad frequently, it signifies that the ad resonates with the target audience, implying that the content is engaging, compelling, and pertinent to what users are seeking. A high CTR typically reflects that the messaging, imagery, and overall appeal of the ad align well with the audience's interests or needs, which can lead to better conversion rates and successful ad campaigns. In contrast, low CTR could suggest that the ad isn’t capturing the audience's attention effectively, which would not be the case here. Other options hint at negative interpretations, such as poor ad placement or ineffective strategies, which do not align with the implications of a high click-through rate. A high CTR generally strengthens the case for the effectiveness of an ad, indicating a successful engagement with the target audience.