We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Facebook's (FB) Ad Metrics "Miscalculation" Woes Continue
Read MoreHide Full Article
Facebook Inc has again found a couple of more “miscalculations/discrepancies” in its advertisement metrics.
In a blog post, Facebook admitted that it “misallocated” the extra reactions per user, during live broadcasts, in the “Reactions on Post section, instead of “Reactions from Shares of Post section”. Moreover, Graph API has helped it locate “discrepancy” between Like and Share counts on the mobile app.
Facebook added that it is not only working on fixing these glitches, but is also improving the way for reporting metrics. “We’re improving our methodology for sampling and extrapolating potential audience sizes. This will help to provide a more accurate estimate for a given target audience and to better account for audiences across multiple platforms (Facebook, Instagram and Audience Network).” The company has assured advertisers not more than 10% changes in their audience size due to these errors.
In Sep 2016, Facebook first revealed that it has found a “mistake” in it ads metrics. It realized that it had been miscalculating the average time spent by users watching videos. The company only took into account the video with views greater than three seconds, excluding the ones with the views of lesser time, thereby leading to greater than actual average view metrics. Following this, in Nov 2016, Facebook again said that it found ‘discrepancies” in calculation in four more metrics.
Facebook’s disclosures sent advertisers and publishers into a tizzy. A couple of ad buying companies, Publicis Media and GroupM, a unit of WPP plc , who were notified about the error by the company itself, openly expressed their discontent on the issue. Publicis Media was quoted saying, “This once again illuminates the absolute need to have 3rd party tagging and verification on Facebook’s platform. Two years of reporting inflated performance numbers is unacceptable.”
To alleviate the anxiety of advertisers and publishers, Facebook has increased third-party verification. The viewership of Facebook videos and Facebook Live has been incorporated in Nielsen Holdings Plc Digital Content Ratings. Also, the company said that it is collaborating with other partners like comScore, Inc. (SCOR - Free Report) , Moat and IAS for enabling advertisers and publishers to verify data through the third party.
WSJ points out “advertisers don’t like margin of error much.” This is a concern as advertising is the mainstay of Facebook’s total revenues, with over 90% contribution.
Year to date, Facebook has vastly outperformed the broader market. Shares of Facebook have grown over 14.3% compared with Zacks Internet Service Industry’s gain of 2.1%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Facebook's (FB) Ad Metrics "Miscalculation" Woes Continue
Facebook Inc has again found a couple of more “miscalculations/discrepancies” in its advertisement metrics.
In a blog post, Facebook admitted that it “misallocated” the extra reactions per user, during live broadcasts, in the “Reactions on Post section, instead of “Reactions from Shares of Post section”. Moreover, Graph API has helped it locate “discrepancy” between Like and Share counts on the mobile app.
Facebook added that it is not only working on fixing these glitches, but is also improving the way for reporting metrics. “We’re improving our methodology for sampling and extrapolating potential audience sizes. This will help to provide a more accurate estimate for a given target audience and to better account for audiences across multiple platforms (Facebook, Instagram and Audience Network).” The company has assured advertisers not more than 10% changes in their audience size due to these errors.
In Sep 2016, Facebook first revealed that it has found a “mistake” in it ads metrics. It realized that it had been miscalculating the average time spent by users watching videos. The company only took into account the video with views greater than three seconds, excluding the ones with the views of lesser time, thereby leading to greater than actual average view metrics. Following this, in Nov 2016, Facebook again said that it found ‘discrepancies” in calculation in four more metrics.
FACEBOOK INC-A Price
FACEBOOK INC-A Price | FACEBOOK INC-A Quote
Facebook’s disclosures sent advertisers and publishers into a tizzy. A couple of ad buying companies, Publicis Media and GroupM, a unit of WPP plc , who were notified about the error by the company itself, openly expressed their discontent on the issue. Publicis Media was quoted saying, “This once again illuminates the absolute need to have 3rd party tagging and verification on Facebook’s platform. Two years of reporting inflated performance numbers is unacceptable.”
To alleviate the anxiety of advertisers and publishers, Facebook has increased third-party verification. The viewership of Facebook videos and Facebook Live has been incorporated in Nielsen Holdings Plc Digital Content Ratings. Also, the company said that it is collaborating with other partners like comScore, Inc. (SCOR - Free Report) , Moat and IAS for enabling advertisers and publishers to verify data through the third party.
WSJ points out “advertisers don’t like margin of error much.” This is a concern as advertising is the mainstay of Facebook’s total revenues, with over 90% contribution.
At present Facebook carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Year to date, Facebook has vastly outperformed the broader market. Shares of Facebook have grown over 14.3% compared with Zacks Internet Service Industry’s gain of 2.1%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>