Facebook will have to pay $ 40 million to its advertisers
The metrics used by the social network to measure the impact of their videos viewing data were inflated, something that severely affected advertisers
Facebook admitted in 2018 that their videos were not as popular as they made it appear. By 2015 and 2016 their measurement systems inflated the figures, something that was not pleasant for advertisers who had to pay numerous sums of money to the company to sink advertising on those videos.
After two major lawsuits imposed in 2016, the technology giant faces a new one but now collectively where Mark Zuckerberg, founder and director of the company, will have to pay 40 million dollars to its advertisers which is equivalent to 36.4 million of euros. Despite the high number, those affected calculated that this amount represents only 40% of the money invested in Facebook, so they would have lost about 60 million.
For the plaintiffs, Facebook could have inflated up to 900% of the data of their videos. According to this incident, the company decided in 2016 to change the algorithm and the measurement systems so it did not continue happening.
Like Google, Facebook is one of the companies where its financial position depends mostly on advertising revenues and it is estimated that more than 70% of the total Internet advertising is distributed between Facebook and Google.
Despite selling certain products and services outside their social networks and apps (the most important being Facebook, Instagram and WhatsApp), the aforementioned social network breathes through the ads that appear on its platform, and they are very precise for the amount of personal data they collect.
K.Villarroel
Source: elmundo.es
