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Doubts around digital advertising are increasing after Facebook reveals it overestimated its video metrics

Wall Street Journal

You might have heard: Facebook overestimated its average video viewing time metric by 60 percent to 80 percent for two years

But did you know: “Marketers who have been pouring huge sums into digital advertising are wrestling with several recent events that add to a troubling picture,” Suzanne Vranica and Mike Shields write. “Some are finding they can’t be sure how well that money was spent or what they’ve received in return for it.” While it was revealed last week that Facebook overestimated its video metrics by as much as 80 percent, Japanese ad company Dentsu Inc. admitted that it overcharged at least 111 companies for Internet ads after Toyota complained that its ads weren’t bringing in the promised impact. “These developments add to the nagging sense for marketers that digital advertising — for all its promise as a way to reach consumers who are tethered to mobile devices and are spending less time on traditional media — has real pitfalls and risks,” Vranica and Shields write.

+ Facebook apologizes for overestimating video metrics for two years, and says that it has not had an “impact on billing or how media mix models value their Facebook video investments” (Wall Street Journal)

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