Facebook’s video ad flub
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.