Gracey's department stores has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. gracey's also has $600,000 of common stock outstanding. during its first year, the company paid cash dividends of $30,000. this dividend should be distributed as follows:
a. $30,000 preferred; $0 common.
b. $12,000 preferred; $18,000 common.
c. $0 preferred; $30,000 common.
d. $15,000 preferred; $15,000 common.
e. $6,000 preferred; $24,000 common.

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Explanation:

For years, there has been a debate among marketing and advertising experts about which sector of their field (digital advertising vs. traditional advertising) is more profitable and yields a higher ROI.

Digital marketing continues to gain ground year after year, thanks to the excellent results it provides for each business and entrepreneur that manages to create successful marketing campaigns for their brands, making use of elements such as virtual tours and social media.

The picture does not look good for traditional marketing, which gradually evolves to adapt to the new digital way of living and the Internet of Things (IoT). Television channels and cable providers have seen how the rating numbers have fallen dramatically over the past five years, thanks to the success of streaming services such as Amazon Prime, Netflix, Hulu, and Disney +.

According to Leichtman Research Group, in 2018 alone, cable providers in the United States lost 1 million users. In 2013, 86% of US households used this service and by the end of 2018, the figure dropped to 78%, almost 10% in less than a decade.

Looking at the previous numbers, it is not difficult to understand why companies that used traditional advertising (television, radio, and press) rushed to restructure the way they capture new users and make a profit.

Beyond the well-known social media and the low cost that a digital marketing campaign requires, what makes it so successful?

A key Digital advertising is highly targeted and is an effective way to align brand advertising with the company’s ideal customer.

Experts have a name for this: Targeting.

What is targeting?

Targeting is a type of online marketing that aims to align advertising to the needs of customers who the company or entrepreneur wants to reach. In the field of display advertising, targeting is essential for the optimization of the advertising budget.

Targeting can be defined as the classification and definition of the target audience or segmentation. It is very important to know what your segment or target audience is in order to create an advertising campaign that adapts to the needs of that audience and can, therefore, be successful.

In short, the more precise the target audience, the easier it will be to create the right campaign and the easier it will be to get their attention.

Normally, online targeting is carried out through the cookies that provide useful information about user behavior. However, due to the uncertainty about the limits of this practice to not invade the users’ privacy, many prefer to avoid its use directly.

Remember that the ideal customer is someone whose needs or problems can be solved effectively by your products and/or services. In conclusion, the ideal client is the one that needs your products or services to improve his or her quality of life.

The benefits of highly targeted digital advertising

Imagine you are surfing the Internet and you see an ad for a business course that interests you. What happened? How did the course find you? Simply, the advertiser has done a great job.

There is no sense in showing your ads to people who are not interested in your product or service. It will only make your business seem intrusive and can potentially cause you to lose money.

A television or press marketing campaign does not allow you to segment the public in such a personalized way as its internet and digital counterparts do. Although a brand can still reach millions of people through a television commercial, the ad does not guarantee that the viewer is interested in acquiring their products or services.

Therefore, although traditional marketing could potentially mean an audience of millions, it does not allow entrepreneurs and companies to canalize their investment in advertising towards the brand’s ideal client.

By investing in digital marketing campaigns, we will have a more accurate and adjusted knowledge of the profile of the users to whom the campaign will go, the ads will be shown to whom we want at the right time. In addition, you avoid being intrusive, and the consumer who receives your advertising will consider it relevant, as it is consistent with their interests.