Facebook (FB) Shares Under Pressure on Reports Video Ad Metrics Were Artificially Inflated

September 23, 2016 8:09 AM EDT

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Facebook (NASDAQ: FB) is trading down 2% in pre-open trade Friday following a report from the Wall Street Journal that advertisers are outraged after learning that the social media powerhouse inflated average viewing time for video ads on its platform for two years.

A few weeks back, Facebook quietly disclosed at its "Advertiser Help Center" that the metric for the average time users spent watching videos was artificially inflated because it was only factoring in video views of more than three seconds. Facebook said it is adding a fix.

Major ad agency Publicis Media relayed in a letter to clients that it was informed by Facebook that average time spent watching videos was overestimated by between 60% and 80%.

Link to WSJ Article



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