Friday, September 23, 2016
Facebook a liar?
Yes. Facebook lied. They lied about how much time people spent watching video ads. This is a big issue because ad agencies that spend money to buy advertisements will spend more money due to the metrics that Facebook released. Lying about how much people watch video ads in a grave mistake. This will downgrade their reputation. If companies spend more money to get an advertisement on Facebook, they could possibly not generate the return they want from it. The purpose of buying an advertisement is to generate some money back. Facebook has fixed the problem in the way they calculate the metrics. They have apparently been lying about the metrics for the past 2 years.
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This is a concerning issue that will most likely lead to major lawsuits against the company. Over the next couple of weeks companies who originally advertised on Facebook will have to negotiate new deals or end their agreements entirely. This could lead to a drop in the stock price and now the company will have a harder time convincing new advertisers to use their website.
ReplyDeleteI am not very surprised that Facebook has done this. With many other growing social networks, Facebook is less used by the younger crowd and more used by the older generation. This loss in use could have overtime lead to a loss in profit for the company causing them to cut corners in order to try and save/acquire more money. However as stated before, this is still big mistake. Now legal problems have arose and more money will be dished out by Facebook before this is over, but could this potentially extremely damage Facebook? The market will show!
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