You are here: Home » Technology » News
Business Standard

Facebook used 'deeply wrong' ad metrics to push revenue, says Report

Facebook increased its revenue by allegedly using deeply wrong ad metrics and failed to correct inflated numbers owing to fake and duplicate accounts, company employees have claimed in a court filing

Topics
Facebook | online advertising

IANS  |  San Francisco 

Photo: Reuters
Photo: Reuters

increased its revenue by allegedly using "deeply wrong" ad metrics and failed to correct inflated numbers owing to fake and duplicate accounts, company employees have claimed in a court filing.

According to a report in The Financial Times based on unredacted filing from a 2018 lawsuit in California, some employees believed they were promoting "deeply wrong" data.

One of them warned that the social network counted on "revenue it should have never made" from the advertisers based on "inflated" numbers.

The product manager said: "It's revenue we should have never made given the fact it's based on wrong data".

Another employee added that "the status quo in ad reach estimation and reporting is deeply wrong."

According to the filing, Facebook COO Sheryl Sandberg acknowledged problems with the as metric way back in 2017.

On its part, the social network has argued that the "potential reach" metric is only a free tool, and the metrics are only estimates.

A Facebook spokesperson told The Verge on Thursday: "These documents are being cherry-picked to fit the plaintiff's narrative. 'Potential reach' is a helpful campaign planning tool that advertisers are never billed on. It's an estimate and we make clear how it's calculated in our ads interface and Help Center".

The filing also claimed that in early 2018, "internal Facebook research found that removing duplicate accounts from potential reach would result in a 10 per cent drop in the figure".

"Facebook knew for years its potential reach was misleading and concealed that fact to preserve its own bottom line," the filing said.

This is not the first time Facebook has faced such a claim.

It previously faced a suit that claimed the company knowingly overestimated how much video users were watching. Facebook settled the suit in 2019.

--IANS

na/in

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, February 19 2021. 11:26 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU