EMarketing The Essential Guide To Online Marketing 1st Edition Test Bank

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Authors: Robert A Stokes

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EMarketing The Essential Guide To Online Marketing 1st Edition Test Bank

 

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© 2013 by Flat World Knowledge, Inc. All rights reserved. Your use of this work is subject to the License Agreement available here http://www.flatworldknowledge.com/legal. No part of this work may be used, modified, or reproduced in any form or by any means except as expressly permitted under the License Agreement.

 

Chapter 3

Online Advertising

 

True/False Questions

 

  1. All forms of advertising in the Internet can be referred to as online advertising.

True; Easy

 

  1. Online advertisements are less interactive compared to offline advertising.

False; Easy

 

  1. The ultimate goal of brand awareness is to do more business and sell more.

True; Easy

 

  1. A major disadvantage of online advertising is that it cannot turn potential customers into actual customers right there and then.

False; Easy

 

  1. Online advertising and activities are highly trackable and measurable.

True; Easy

 

  1. Advertisements that are shown at the background of Web pages are referred to as interstitial banners.

False; Easy

 

  1. Pop-unders open as a new small window while opening a Web page.

True; Easy

 

  1. Pop-up advertisements can be blocked using a good Web browser.

True; Easy

 

  1. A floating advertisement appears in a layer over the content as a separate window.

False; Moderate

 

  1. Usually, it is not possible to click through wallpaper advertisements.

True; Easy

 

  1. Static banners employ rich media such as JavaScript.

False; Moderate

 

  1. Online banners are always limited to the space that they occupy in a Web site.

False; Moderate

 

  1. A wallpaper advertisement changes the background of the Web page being viewed by the users.

True; Easy

 

  1. GIF images used in banners are an example of rich media.

False; Moderate

 

  1. CPM refers to cost per thousand impressions.

True; Easy

 

  1. CPI pricing model is used when brand awareness or exposure is the primary goal of the advertiser.

True; Easy

 

  1. CPA payment model is the best way for a publisher to obtain payment.

False; Moderate

 

  1. The CPA model is commonly used for banner advertising and is generally associated with affiliate marketing.

False; Moderate

 

  1. Flat rate would appeal to a media buyer who may be testing an online campaign that targets niche markets.

True; Moderate

 

  1. CPC means that the advertiser pays each time the advertisement appears on the publisher’s page.

False; Easy

 

  1. Pay-per-click is recommended for advertisers when the aim is to drive traffic to a new Web site.

True; Moderate

 

  1. In cost per engagement model, advertisers pay a fixed rate regardless of the amount of traffic or impressions.

False; Easy

 

  1. The advertising network acts as an intermediary between advertisers and publishers and provides a technology solution to both.

True; Easy

 

  1. The ad servers do not provide information about pay-per-click.

False; Easy

 

  1. An online advertiser can track the operating system used by the respondents.

False; Easy

 

  1. Advertising networks can provide information about the people who saw the advertisement as well as those who acted on it.

True; Easy

 

  1. Frequency capping refers to the process of arranging advertisements in a particular order.

False; Moderate

 

  1. Online advertising has the ability to target markets by country, province, or city and can even drill them down to something as specific as their IP address.

True; Easy

 

  1. Advertising networks can be used for creating advertising exchanges.

True; Easy

 

  1. Behavioral targeting refers to the ad server’s ability to infer the optimum advertisements to serve, based on the content of the page.

False; Easy

 

  1. Sending advertising traffic to the home page is suitable in most cases.

False; Moderate

 

  1. The content of an online advertisement should be concise and directional.

True; Easy

 

  1. Time spent on a Web page is not a measure of the level of interaction a Web user has with a Web site.

False; Moderate

 

  1. The popularity and effectiveness of Internet banners are dropping.

True; Easy

 

  1. Banner advertisements are not effective for building a brand within a specific sphere.

False; Moderate

 

  1. Cognitive learning is a powerful outcome of interactive display advertising.

True; Easy

 

  1. Because of the intuitive nature of online advertisements, viewers do not experience advertising fatigue.

False; Moderate

 

 

Multiple Choice Questions

 

  1. Which of the following observations regarding online advertising is true?
    1. Online advertisements cannot be used to increase brand awareness.
    2. Online advertisements are more interactive than offline advertising.
    3. E-mail campaigns are not regarded as online advertising.
    4. Internet advertisements are not trackable and measurable.
    5. Unlike other advertisements, videos cannot be included in online advertisements.

b; Moderate

 

  1. The process of making people know about a brand or product is termed _____.
    1. brand awareness
    2. brand consulting
    3. brand licensing
    4. brand management
    5. brand strategy

a; Easy

 

  1. Which of the following is not an objective of online advertising?
    1. Building brand awareness
    2. Creating customer demand
    3. Satisfying customer demand
    4. Driving customer response
    5. Reducing competition

e; Easy

 

  1. To be successful, all forms of online marketing need to _____.
    1. reduce differentiation in the service mix
    2. use a strategic low-pricing policy
    3. increase the visitors to the Web site
    4. use psychological pricing strategy
    5. use interactive visual displays

c; Moderate

 

  1. Which of the following types of advertisements is shown between the pages on a Web site?
    1. Pop-up
    2. Map advertisement
    3. Floating advertisement
    4. Interstitial banners
    5. Banner advertisement

d; Easy

 

  1. In which of the following is a new, smaller window opened to display the advertisement?
    1. Floating advertisements
    2. Pop-ups
    3. Map advertisements
    4. Wallpaper advertisements
    5. Interstitial banners

b; Easy

 

  1. Which of the following types of advertising can be blocked using a good Web browser?
    1. Pop-unders
    2. Map advertisements
    3. Floating advertisements
    4. Banner advertisement
    5. Interstitial banners

a; Moderate

 

  1. Which of the following is a technology that is used to create static banners?
    1. Interactive technology
    2. JavaScript
    3. Graphics interchange format
    4. Flash video
    5. Rich medium

c; Easy

 

  1. Usually, it is not possible to click through _____ advertisements.
    1. pop-up
    2. map
    3. floating
    4. banner
    5. wallpaper

e; Moderate

 

  1. In a Web site, an apparel manufacturer’s advertisement appears in a layer over the content in the same window. This is an example of _____.
    1. pop-unders
    2. map advertisements
    3. floating advertisements
    4. banner advertisement
    5. interstitial banners

c; Moderate

 

  1. Floating advertisements are created with _____.
    1. JavaScript
    2. DHTML
    3. GIFs
    4. JPEG
    5. UML

b; Easy

 

  1. _____ is an eight-bit-per-pixel bitmap image format that uses a palette of up to 256 colors and allows images to be compressed faster.
    1. JPEG
    2. Bitmap
    3. PNG
    4. TIFF
    5. GIF

e; Moderate

 

  1. Advertising placed within online mapping solutions such as Google Maps are termed _____.
    1. map advertisements
    2. wallpaper advertisements
    3. floating advertisements
    4. banner advertisement
    5. interstitial banners

a; Easy

 

  1. _____ advertisements are sometimes referred to as “Shoshkeles.”
    1. pop-ups
    2. wallpaper advertisements
    3. banner advertisement
    4. floating advertisements
    5. interstitial banners

d; Moderate

 

  1. In an online portal, an advertisement is shown every time the users navigate to a different page. This is an example of _____.
    1. pop-ups
    2. wallpaper advertisements
    3. banner advertisement
    4. interstitial banners
    5. floating advertisements

d; Moderate

 

  1. Premier Sugar Company produces chocolates under the brand name Chocolut. The company is planning to launch an Internet advertising campaign to increase the brand awareness of Chocolut. Which of the following pricing schemes is suitable for this campaign?
    1. CPM
    2. CPC
    3. PPC
    4. CPA
    5. Flat rate

a; Hard

 

  1. In CPC pricing, the advertiser pays:
    1. each time the advertisement appears on the publisher’s page.
    2. when an advertisement delivers an acquisition.
    3. when the advertisement is clicked on by an interested party.
    4. a fixed amount every year.
    5. when an advertisement results in a sale or transaction.

c; Moderate

 

  1. Which of the following payment methods is suitable when the advertising is aimed at increasing the traffic to a new Web site?
    1. CPM
    2. CPC
    3. PPC
    4. CPA
    5. Flat rate

b; Moderate

 

  1. _____ payment model is generally associated with affiliate marketing.
    1. CPM
    2. CPI
    3. CPE
    4. Flat rate
    5. CPA

e; Easy

 

  1. In the _____ payment model, the publishers are rewarded only if the advertising is successful.
    1. CPM
    2. CPC
    3. CPE
    4. CPA
    5. Flat rate

d; Moderate

 

  1. A Web site may decide to charge a flat rate if:
    1. it is a low-traffic Web site
    2. it is using an affiliate model.
    3. its customer response and traffic is high.
    4. the advertising’s primary goal is brand building.
    5. it is a social networking portal.

a; Moderate

 

  1. In which of the following payment models the publishers are paid based on the interactions with that advertisement?
    1. Flat rate
    2. cost per impression
    3. cost per acquisition
    4. cost per engagement
    5. cost per thousand impressions

d; Moderate

 

  1. Which of the following payment models would appeal to a media buyer who is testing an online campaign that targets niche markets?
    1. CPM
    2. CPC
    3. CPE
    4. CPA
    5. Flat rate

e; Easy

 

  1. Which of the following payment models charge a fixed charge for the advertisements posted in a Web site?
    1. CPM
    2. Flat rate
    3. CPE
    4. CPA
    5. CPC

b; Easy

 

  1. Which of the following payment models is directly dependent on conversion rate of the advertiser’s Web site?
    1. CPM
    2. Flat rate
    3. CPA
    4. CPE
    5. CPC

c; Easy

 

  1. _____ are servers that store advertisements and serve them to Web pages.
    1. Ad servers
    2. Windows servers
    3. Commercial servers
    4. Web servers
    5. Virtual servers

a; Easy

 

  1. Which of the following refers to a group of Web sites on which advertisements can be purchased through a single sales entity?
    1. Advertising agency
    2. Internet capital group
    3. Hypertext application group
    4. Advertisement network
    5. Publishers consortium

d; Easy

 

  1. Which of the following observations about ad servers is true?
    1. Ad servers distribute copies of each piece of creative advertising to different publishers
    2. Ad-agencies cannot modify rotations on the advertisements in the servers without contacting the vendors.
    3. Ad servers provide a consistent counting methodology across a campaign.
    4. The ad servers do not provide information about pay-per-click.
    5. The ad servers cannot be used to store banner advertisements.

c; Moderate

 

  1. Frequency capping ensure that _____.
    1. a user sees advertisements in a particular order
    2. the number of times a user sees the same advertisement in a session is limited
    3. advertisements from direct competitors are not shown on the same page
    4. some users cannot see and access the advertisements published in web pages
    5. the advertiser own 100 percent of the advertising inventory on a page

b; Moderate

 

  1. The process of ensuring that the users see advertisements in a particular order is termed _____.
    1. Frequency capping
    2. Exclusivity
    3. Road-blocking
    4. Geo-targeting
    5. Sequencing

e; Easy

 

  1. Exclusivity ensures that _____.
    1. a user sees advertisements in a particular order
    2. the number of times a user sees the same advertisement in a session is limited
    3. advertisements from direct competitors are not shown on the same page
    4. some users cannot see and access the advertisements published in web pages
    5. the advertiser own 100 percent of the advertising inventory on a page

c; Easy

 

  1. The ad server infers the optimum advertisements to serve, based on the content of the page. This is referred to as _____.
    1. contextual advertising
    2. behavioral targeting
    3. social serving
    4. geo-targeting
    5. hidebound advertising

a; Easy

 

  1. In Internet advertising, social serving refers to _____.
    1. Advertising for a social cause
    2. gathering personal data about users and then serve each user with relevant advertising
    3. Advertising and promotions that appear in not-for-profit Web sites and portals
    4. Advertising and promotions that can be used and accessed by everyone in the society
    5. Advertising and promotions that are intended for the betterment of the society and people

b Moderate

 

  1. The advertising network uses the profile of a user to determine which advertisements to show during a given visit. This is referred to as _____.
    1. contextual advertising
    2. geo-targeting
    3. social serving
    4. behavioral targeting
    5. hidebound advertising

d; Easy

 

  1. The page a user reaches when clicking on a paid or organic search engine listing is termed _____.
    1. search page
    2. central page
    3. navigation page
    4. home page
    5. landing page

e; Easy

 

  1. High-traffic Web sites with a broad audience will most likely charge on a _____ basis.
    1. CPM
    2. PPC
    3. CPA
    4. Flat rate
    5. CPE

a; Easy

 

  1. _____ is the most meaningful estimate of the level of interaction a Web user has with the Web site.
    1. Number of pages in the Web site
    2. The number of customized pages in a Web site
    3. The number of pages visited
    4. Time spent on a Web pages
    5. Number of advertisements in a Web site

c; Moderate

 

  1. Which of the following online activities is the most effective for an advertiser who is running a competition?
    1. Use a banner with rich media content and images.
    2. Advertise the rules of the competition to attract the target market.
    3. Advertise to keep the target market’s eye on the prize.
    4. Use banner advertising to brand the Web sites of every major player in that niche.
    5. Launch an exciting online activity that initiates action.

c; Moderate

 

  1. A phrase written in the online advertisements to motivate the reader to take action is termed _____.
    1. initiator
    2. prompting link
    3. click tracking
    4. click inviting
    5. call to action

e; Easy

 

  1. The process of using scripts to track clicks into and out of a Web site is called _____.
    1. call to action
    2. click monitoring
    3. interactivity
    4. click tracking
    5. digital shadowing

d; Easy

 

  1. Which of the following is a disadvantage of online advertising?
    1. Online advertisements cannot be tracked easily.
    2. Consumers can limit the advertising that they see.
    3. Online advertisements have limited interactivity.
    4. Most of the online advertisements are not easy to comprehend.
    5. Online advertisements cannot induce cognitive learning.

b; Moderate

 

 

 

Short Answer Questions

 

  1. Online advertising can be used to create consumer demand. Explain.

Consumers can’t want what they don’t know about. Advertising needs to convince consumers about what they should want and why they should want it. Modern online advertising provides a great way to communicate the unique selling points of a product, thereby helping stimulate demand.

Moderate

 

  1. How does online advertising act as a key differentiator amidst competition?

Online advertising is capable of driving instant sales and conversions. Unlike offline advertising mediums, the consumer can go from advertisement to merchant in one easy click. Because of the connected nature of the Internet, online activities are highly trackable and measurable, which makes it possible to target advertisements and to accurately track and gauge the effectiveness of the advertising. These features make online advertising a key differentiator.

Moderate

 

  1. What are the different objectives of advertising? How can marketers use online advertisements to meet these objectives?

The different objectives of advertising are building brand awareness, creating consumer demand, driving response and sales, and acting as the key differentiator. Making people aware of a brand or product is an important long-term goal for any marketer.

If brand building has been effective, customers will know that a particular brand exists. Marketers can show the consumer how their particular brand or product will best meet that need with the help of online advertising. All forms of online marketing need to drive traffic and sales in the long term.

Moderate

 

  1. What are the different technologies used to display graphic images or animation in online banners?

A banner advertisement is a graphic image or animation displayed on a Web site for advertising purposes. Static banners are GIFs (Graphics Interchange Format) or JPEG (Joint Photographic Experts Group) images, but banners can also employ rich media such as Flash, video, JavaScript, and other interactive technologies. Interactive technology allows the viewer to interact and transact within the banner. Banners are not limited to the space that they occupy; some banners expand on mouseover or when clicked on.

Moderate

 

  1. What are map advertisements?

Online map advertisements are advertisements placed within online mapping solutions such as Google Maps.

Easy

 

  1. What is a floating advertisement?

A floating advertisement appears in a layer over the content, but is not in a separate window. Usually, the user can close this advertisement.

Easy

 

  1. Describe any three online advertising methods?

The students can explain any three of the following methods.

 

Interstitial banners are shown between pages on a Web site. As you click from one page to another, you are shown this advertisement before the next page is shown.

 

Pop-Ups and Pop-Unders are advertisements that pop up, or under, the Web page being viewed. They open in a new, smaller window.

 

Map Advertisements are advertising placed within the online mapping solutions available, such as Google Maps.

 

A floating Advertisement appears in a layer over the content, but is not in a separate window. Usually, the user can close this advertisement. These are sometimes referred to as “Shoshkeles,” a proprietary technology. Often, the animations used in them ends by disappearing into a banner ad on the page.

 

A wallpaper Advertisement changes the background of the Web page being viewed. Usually, it is not possible to click through this advertisement.

 

A banner advertisement is a graphic image or animation displayed on a Web site for advertising purposes. Static banners are GIFs (Graphics Interchange Format) or JPEG (Joint Photographic Experts Group) images, but banners can also employ rich media such as Flash, video, JavaScript, and other interactive technologies.

Moderate

 

  1. Describe cost-per-click advertising.

Cost-per-click means that the advertiser pays only when their advertisement is clicked on by an interested party. Cost-per-click advertising is normally associated with paid search marketing, also called pay-per-click (PPC) advertising. Banners can be priced this way when the aim is to drive traffic. It is also a payment method sometimes used in affiliate marketing, when the aim is to drive traffic to a new Web site.

Easy

 

  1. Describe the payment model that is generally associated with affiliate marketing.

Cost per acquisition (CPA) is the model that is generally associated with affiliate marketing. This model means the advertiser only pays when an advertisement delivers an acquisition. Definitions of acquisitions vary from site to site and may be a user filling in a form, downloading a file, or buying a product. The publisher has to rely on the conversion rate of the advertiser’s Web site, something that the publisher cannot control.

Moderate

 

  1. What is flat rate model? When is it used?

Sometimes, owners of lower-traffic sites choose to sell banner space at a flat rate, that is, at a fixed cost per month regardless of the amount of traffic or impressions. This would appeal to a media buyer who may be testing an online campaign that targets niche markets.

Easy

 

  1. Explain the different payment models used in online advertising?

Cost per impression is a payment model where the advertiser pays each time the advertisement appears on the publisher’s page. The most common way of referring to this model is CPM or cost per thousand impressions. In cost per click model, the advertiser only pays when their advertisement is clicked on by an interested party.  In cost per acquisition (CPA), the advertiser only pays when an advertisement delivers an acquisition. The CPA model is not commonly used for banner advertising and is generally associated with affiliate marketing.

 

Sometimes, owners of lower-traffic sites choose to sell banner space at a flat rate, that is, at a fixed cost per month regardless of the amount of traffic or impressions. Cost per engagement is an emerging technology in which advertisers pay for the rollover advertisements, placed in videos or applications, based on the interactions with that advertisement.

Moderate

 

  1. What are ad servers?

Ad servers are servers that store advertisements and serve them to Web pages. Ad servers can be local, run by a publisher to serve advertisements to Web sites on the publisher’s domain, or they can be third-party ad servers that serve advertisements to Web pages on any domain. Ad servers facilitate advertisement trafficking and provide reports on advertisement performance.

Easy

 

  1. What are advertising networks? What are its benefits?

An advertising network is a group of Web sites on which advertisements can be purchased through a single sales entity. It could be a collection of sites owned by the same publisher or it could be an affiliation of sites that share a representative. The advertising network acts as an intermediary between advertisers and publishers and provides a technology solution to both. As well as providing a centralized ad server that can serve advertisements to a number of Web sites, the networks offer tracking and reporting, as well as targeting.

Moderate

 

  1. What is geo-targeting?

Online advertising has the ability to target markets by country, province, or city and can even drill them down to something as specific as their IP address. This is called geo-targeting.

Easy

 

  1. Explain the features of advertising networks that facilitate targeting and optimizing.

Frequency capping: The network will limit the number of times a user sees the same advertisement in a session.

Sequencing: The network can ensure that a user sees advertisements in a particular order.

Exclusivity: The network will ensure that advertisements from direct competitors are not shown on the same page.

Roadblocks: The network will allow an advertiser to own 100 percent of the advertising inventory on a page.

Moderate

 

  1. The trackability of online advertising is what makes it so superior to pasting pictures around town in a bid to boost your brand. Explain.

In online advertising, an advertiser can determine how many times an advertisement was seen (impressions) and how many times the advertisement was successful in sending visitors to the advertised Web site (clicks). The tracking helps in determining how successful the advertisement has been in creating more revenue for that Web site (conversions). Tracking advertisements being served and clicked on, advertising networks can also provide information about the people who saw the advertisement as well as those who acted on it. Advertising networks can provide information about connection type, browser, operating system, time of day and Internet service providers.

Moderate

 

  1. How do you measure the level of interaction a Web user has with a Web site?

It used to be that the level of interaction a Web user has with a Web site could be measured by the number of pages of that Web site the user viewed. Now, technology such as Ajax and rich media such as video mean that the time spent on a Web page can be more meaningful than the number of pages viewed. The key word here is “engagement,” and technology and data analysis is working toward being able to determine how Web sites can quantify the level of engagement with a viewer.

Moderate

 

  1. Explain the importance of interactivity in online advertisements.

Since banners can contain rich media, they offer levels of interaction that other forms of advertising cannot achieve. It allows your target market not only to see your banner but also to play with it. Interaction builds a bond and improves the chances of the consumer remembering your brand tomorrow. Cognitive learning is a powerful outcome of interactive display advertising.

Moderate

 

  1. Modern online advertising is able to bring together a number of other online marketing tactics. Explain.

Modern online advertising is able to bring together a number of other online marketing Tactics. A few years ago, Flash microsites were all the rage, now the same functionality can exist right within the ad. This includes filling in a form or playing a game within the advertisement. Clever viral marketing games or “send to a friend” functionality can be accessed from within the ad. Viewers can also check out video previews or trailers from within the ad.

Moderate

 

  1. What are the advantages of online advertising?

Online ads have a set size, they can look very similar to print ads, and they occupy a particular bit of real estate in a publication with a particular number of eyeballs looking at it. It’s easy to understand, and it does the things buyers expect advertising to do.

 

Since banners can contain rich media, they offer levels of interaction that other forms of advertising cannot achieve. It allows your target market not only to see your banner but also to play with it. Interaction builds a bond and improves the chances of the consumer remembering your brand tomorrow. Cognitive learning is a powerful outcome of interactive display advertising.

 

Banner ads, like all eMarketing tactics, are measurable. Track click-through rates and you get an idea of exactly how many people are responding to your call to action. Some publishers even have the ability to do post-click tracking, that is, you can track the user all the way to a sale if that is the purpose of the advertisement.

Moderate

 

  1. What are the disadvantages of online advertising?

The nature of a lot of display advertising is intrusive, so a pop-up blocker can prevent advertisements from being served as they were intended by the advertisers. Bandwidth can also be an issue for online advertisements. A third problem is that consumers are suffering from advertising fatigue, so while new technologies can provide great results, as soon as the market moves mainstream, it can get saturated. Consumers are increasingly ignoring advertisements. As well as most browsers now blocking pop-ups, there are also extensions available for the Firefox browser, such as Adblock Plus, that will block advertising on Web pages. Technologically savvy consumers are increasingly using these methods to limit the advertising that they see.

Moderate

 

 

Fill in the Blanks

 

  1. The process of making sure someone is aware of a brand or product is called _____.

brand awareness; Easy

 

  1. _____ of a Web site is a measure of the visitors that visit a Web site.

Traffic; Easy

 

  1. An online advertisement in the form of a graphic image that appears on a Web site is called _____.

banner; Easy

 

  1. _____ advertisements are shown to the users before the next page as they click from one page to another.

Interstitial; Easy

 

  1. _____ are advertising placed within the online mapping solutions available, such as Google Maps.

Map advertisements; Easy

 

  1. An un-requested window that opens on top of the currently viewed window is referred to as _____.

pop-up; Easy

 

  1. _____ payment model means the advertiser pays each time the advertisement appears on the publisher’s page.

Cost per impression; Easy

 

  1. In the _____ model, the publishers charge a fixed cost per month regardless of the amount of traffic or impressions.

flat rate; Easy

 

  1. _____ pricing model is used when brand awareness or exposure is the primary goal.

Cost per click; Easy

 

  1. The advertising network uses the profile of a user to determine which advertisements to show during a given visit. This type of targeting is termed _____.

Behavioral targeting; Easy

 

  1. The servers that are used to store advertisements and serve them to Web pages are termed _____.

ad servers; Easy

 

  1. A group of Web sites on which advertisements can be purchased through a single sales entity is called _____.

advertising network; Easy

 

  1. Niche Web sites with a smaller but probably more targeted audience will most likely charge a flat rate or a _____ rate.

cost per acquisition; Easy

 

  1. Using banner advertisements that shadow the above-the-fold activity to drive the message both on and offline is termed _____.

digital shadowing; Easy

 

  1. _____ refers to using scripts to track clicks into and out of a Web site.

Click tracking; Easy