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Facebook Video Ads: Did You Overpay?

Posted on 9.22.2016

Bad news for Facebook advertisers - video metrics were misreported over the past two years.

According to the Wall Street Journal, Facebook apparently indicated that its measure of the average time users spent watching videos was artificially inflated because it was only factoring in video views of more than three seconds - resulting in data that overestimated this metric by 60-80 percent.

As you might imagine, that's a big, big problem as advertisers who spent money promoting their campaigns on the network did so based on false information and likely paid higher rates to run their ads as a result.

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For many, it will once again illustrate the need to have third-party tagging and verification in place.

Facebook was quick to respond that the error had been fixed, that it did not impact billing, and its partners have been notified. The social network also renamed the metric in order to make it clearer what is actually being measured.

Too little, too late? Facebook's share price fell by roughly 2 percent in after hours trading.


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