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Facebook to refund overcharged advertisers

19 May, 2017, 17:01 | Author: Alberta Rodriguez
  • Facebook said it is issuing refunds to some advertisers

Nonetheless, the social media giant intends to refund advertisers who were over-billed due to the error. This audience is much smaller than Facebook's desktop website, the size of Facebook's mobile website audience became apparent previous year when Facebook made a decision to fight ad blocking.

The bug incorrectly attributed some users' clicks on Facebook's video carousel as link clicks, which caused advertisers who paid for such ads to be incorrectly billed.

Advertisers that purchased video carousel ads based on the number of impressions or video views were not affected by the glitch regardless of whether the video was viewed on Facebook's desktop or mobile website. However, one thing that all of these errors had in common was that none of them affected billing, implying no impact on advertisers in direct monetary terms.

A source familiar with the matter said the bug overcharged advertisers a median amount of $10 over the course of a year.

Unlike several of Facebook's more recent measurement errors, such as providing inaccurate data on how much time people were spending with video ads on Facebook, this carousel mishap was fairly limited in scope. Similarly, if a user clicked a link to open a photo or video, Facebook counted these as link clicks even if the user never left the Facebook website. Facebook has also made significant inroads into developing its own exclusive and original video content for users, even launching apps for home TVs created to make it easier to watch videos. Experts previously told CBS News that Facebook uses an opaque reporting structure that bars advertisers from independently verifying the impressions, ad reach, streaming reactions and other basic metrics the company reports.

The latest advertising bug also comes as Facebook looks to bolster its video offerings considerably. Thus the disclosure will assist media executives in arguing that television provides an environment that is more predictable and safer for advertisers compared to digital platforms.

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