Face­book’s video ad flub

Daily Freeman (Kingston, NY) - - BUSINESS -

In case you haven’t no­ticed, on­line video ads are the “next big thing,” just as mo­bile ads were the “next big thing” just a few years ago.

While video ads are still a tiny piece of the dig­i­tal ad­ver­tis­ing mar­ket, mar­keters are jump­ing on the band­wagon, prompted in large part by the surg­ing pop­u­lar­ity of on­line video in non-ad set­tings.

Face­book is mak­ing a huge push on this front. It says over­all video views on its ser­vice have in­creased by 50 per­cent in the past two years. As mo­bile tech­nol­ogy im­proves, peo­ple are creat­ing more videos to post on so­cial me­dia — in­clud­ing live streams.

Last week, though, Face­book apol­o­gized to ad­ver­tis­ers for over­stat­ing how long, on av­er­age, peo­ple watched its video ads. Face­book blamed a sim­ple cal­cu­la­tion mis­take.

The mea­sure­ment is one of 14 that Face­book pro­vides ad­ver­tis­ers on video per­for­mance. It doesn’t af­fect how much Face­book charges, but an­a­lysts say ad agen­cies might have used the es­ti­mates as they plan cam­paigns and de­cide how much to spend.

In­vestors largely shrugged off the is­sue, and Face­book’s stock is still trad­ing near an all-time high.

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