When considering an investment in a startup tech company


1. Social media and search engine sites have moved from a CPC to a CPM business model for selling advertisements. Describe the difference between CPC and CPM and describe why sites that offer advertising are moving to the CPM business model.

CPC stands for cost per click that means one is charged only when the advertisement is clicked and not on its impressions. CPM stands for cost per mile (1000 impressions) that means one is charged when 1000 impressions of the advertisement its shown weather it is clicked or not. Search engines and social media sites have moved from CPC to CPM module because it generates stable income as in CPC income is dependent on the number of clicks.

2. When considering an investment in a startup tech company, what factors should you consider after target market and problem solving?

While considering investing in a startup company, we need to consider the company's position in the market. The scope for the company in the future market must be analyses. The current marketing conditions of the technology being used and the problems and the scope of the problems getting solved must be analyzed. The competition for the company must also be considered. Based on these analyses the investment must be done when investing in a startup tech company.

3. Describe the concept of net neutrality. Take a "pro" or "con" position and support your position in your answer. Be sure to give both tech and business reasons for your position.

The internet services provider companies should treat all the data without any expiation on the internet equally. The ISPs should not be allowed to charges any extra money for accessing some specific websites or any other internet content. I am personally in favor of net neutrality because first of all it provides freedom of expression to everyone where everyone can express their ideas on the internet without any restrictions. It also, promotes innovation and competition so that even a new startup can compete an established firm by using resources on internet freely.

4. What are the factors to be considered by managers when making a make, buy, or rent decision to satisfy the IT needs of their firms?

Some of the factors that must be considered when evaluating the cost of an IT decision include labor including: software development, quality assurance, ongoing support, training, and maintenances, hardware, communication, consulting, security, operations, licensing, energy, and real estate. Also, competitive advantage, security, legal and compliance issues, the organization's skill and available labor, cost, time, and vendor issues.

5. What issues are faced by firms who try to use predictive systems? What factors go into the potential inability of these systems in accurately predicting the future business environment?

Many issues are faced by firms that use predictive system such as: Revision of budgets, e-allocation of resources, re-vamp of infrastructure, failure to achieve business objectives in long run, technology changes and systems become obsolete. Moreover, some of the inabilities are: Inability to predict changing tastes and behaviors of people, economic conditions are not forecasted in a timely manner, legal and environmental constraints are at-times not taken into account, Export regulations can never be forecasted.

6. What are the various types of online advertising fraud being perpetrated by fraudsters? List and describe at least three types.

The various of online advertising frauds are click farms, botnets, keyword stuffing. Link fraud, enriching click fraud, depleting click fraud and much more. Link fraud, it refers to creating fake website which links to a page just to increase its results in the search engine. Click farms, it refers to hiring a large number of users just to click on advertising links. Keyword stuffing, it refers to unnecessary stuffing of keywords and numbers in a website so that its search ranking can be improved.

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