Save your FREE seat for Streaming Media Connect this August. Register Now!

Facebook Will Pay $40M Fine for Overstating Video Ad Metrics

Article Featured Image

A class action lawsuit against Facebook is close to being over, as the social network has agreed to pay a $40 million fine for overstating video watch metrics (although it claims that it did nothing wrong). Video advertisers that purchased ads on the site between February 12, 2015, and September 23, 2016, are eligible to take part.

News 2At the heart of the suit is Facebook's previous method of calculating watch time. The company's policy was to disregard video views under three seconds, but doing so artificially increased two average watch time metrics. Advertisers rely on those figures to gauge video ad performance, and so believed their ads were performing better than they actually were. Metrics were increased by 150 to 900%, accusers say. Facebook changed its metrics in 2016 to include all video views.

"Plaintiffs alleged that the error led them and other advertisers to spend more money advertising on Facebook than they otherwise would have. Plaintiffs also alleged that Facebook knew or should have known of the error long before it ultimately fixed it," the memorandum for the settlement says.

During the litigation, Facebook admitted that it made an error in calculation, but asserted that it had been fixed quickly and didn't impact billing. It didn't offer any refunds, and petitioned the court multiple times to dismiss the suit.

Streaming Covers
for qualified subscribers
Subscribe Now Current Issue Past Issues
Related Articles

Facebook Announces International Expansion of Collaboration Tool

The social network is expanding access to its Brand Collabs Manager tool. Using it, advertisers can find the right partners for branded partnerships.

Facebook Announces Portal TV, Video Calling Device for the Home

Video calling comes to the biggest screen in the house with the introduction of Portal TV. But is this something consumers have been asking for?

NFL and Facebook Renew Two-Year Video Highlights Agreement

Football fans will be able to view highlights from all regular season and post-season games, plus access original video . For live game streaming, however, they'll need to head to Amazon.

Facebook Open Sources Two Video- and Photo-Matching Tools

With the goal of preventing harmful content, Facebook offers technology that can identify and block photos and videos as quickly as they're uploaded.

Facebook’s Video Strategy Shows Signs of Success: IHS Markit

In a finding that will support the case short-form content service Quibi is making to advertisers, mobile devices have become a key area of growth in terms of video consumption.