D098 Digital Marketing - Set 5 - Part 3

Correct Answer: First-party data

First-party data is information a company collects directly from its own audience through owned channels such as its website, app, CRM, and purchase history, making it accurate, privacy-friendly, and increasingly valuable as third-party cookies disappear. Third-party data is aggregated by outside providers, second-party data is another company's first-party data shared through a partnership, and inferred data is derived through analysis rather than collected directly.

Correct Answer: Telephone Consumer Protection Act (TCPA)

The Telephone Consumer Protection Act (TCPA) regulates telemarketing communications in the United States, including SMS text messaging, and requires businesses to obtain prior express written consent before sending promotional texts to consumers. GDPR is a European data privacy regulation, the CAN-SPAM Act governs commercial email, and COPPA protects the online privacy of children under 13—none of which specifically govern SMS opt-in consent in the U.S.

Correct Answer: Linear attribution

Linear attribution distributes conversion credit evenly across all touchpoints in the customer journey, giving each interaction the same weight regardless of its position or timing. Last-click gives all credit to the final touchpoint, position-based (U-shaped) typically weights the first and last touchpoints most heavily, and time-decay gives more credit to touchpoints closer to conversion—only linear treats every touchpoint equally.

Correct Answer: Cost per view (CPV)

Cost per view (CPV) is a video advertising pricing model in which the advertiser pays each time a viewer watches the ad to completion or for a defined minimum duration, aligning cost with actual engagement. CPM charges per thousand impressions regardless of viewing, CPA charges only upon a conversion, and CPL charges per captured lead—none of which bill specifically on a per-video-view basis.

Correct Answer: Repeat purchase rate

Repeat purchase rate measures the percentage of customers who return to make additional purchases, serving as a key indicator of customer retention and loyalty in the retention stage of the funnel. Bounce rate measures single-page website exits, click-through rate measures the ratio of clicks to impressions, and cost per acquisition measures spending per new customer—none of which capture how many customers buy more than once.

Correct Answer: Direct traffic

Direct traffic consists of visitors who arrive at a site by typing the URL directly, using a bookmark, or through untagged links where no referring source is recorded. Referral traffic comes from links on other websites, organic search traffic comes from unpaid search engine results, and paid search traffic comes from clicking paid ads—none of which describe a visitor arriving without an identifiable external source.

Correct Answer: Opt-in consent

Opt-in consent requires users to take an affirmative action, such as clicking 'Accept,' before non-essential cookies or tracking are activated, and it is the standard mandated by regulations like the GDPR. Opt-out consent assumes agreement until the user declines, implied consent infers agreement from continued use, and legitimate interest is a separate legal basis for processing—none of which require the explicit affirmative action that defines opt-in.

Correct Answer: Dynamic retargeting

Dynamic retargeting serves personalized ads that display the specific products or content a user previously viewed or added to their cart, automatically pulling from a product feed to increase relevance and recover abandoned conversions. Contextual targeting places ads based on page content, lookalike targeting reaches new users resembling existing customers, and geo-targeting delivers ads by location—none of which show returning users the exact items they abandoned.

Correct Answer: 40% to the first touchpoint, 40% to the last, and 20% spread across the middle

A position-based, or U-shaped, attribution model typically assigns 40% of the conversion credit to the first touchpoint and 40% to the last touchpoint, with the remaining 20% distributed among the middle interactions, emphasizing both initial discovery and final conversion. Equal distribution describes linear attribution, full last-touch credit describes last-click, and progressively increasing credit toward conversion describes time-decay—none of which match the U-shaped weighting.

Correct Answer: Frequency capping

Frequency capping limits the number of times a specific user is shown the same ad within a defined time period, helping prevent ad fatigue and wasted impressions. Dayparting schedules ads to run during particular times of day, bid adjustment modifies how much an advertiser bids under certain conditions, and audience exclusion prevents ads from reaching specified groups—none of which cap how often an individual sees a given ad.