Facebook commits to media audit; doubles down on ad offerings
Over the past few years, Facebook has turned itself into a powerful media platform. It is, nonetheless, adamant that it’s not a media company – it doesn’t actually produce media itself, just features others’. If Facebook’s ambitions don’t sit within media, where do they sit? Advertising to the company’s 1.9 billion users, as they consume media that is hosted on the social networking site but created by third parties like The Washington Post. And now, Facebook is pushing to make its advertising services even more attractive.
Facebook is up 17% already this year!
SOURCE: Yahoo Finance
In answer to skepticism from some advertisers around its metrics, Facebook has agreed to audits from the media industry’s measurement watchdog, the Media Rating Council. The move is a fix for misreporting errors the company made, which it recently disclosed, to advertisers and partners.
Advertising is Facebook’s main revenue channel, so the company can’t afford to take half measures. In a statement released Friday, it also promised to be more transparent with its reporting, and release more in-depth information like how long users viewed a particular ad, and how much of the screen it covered.
The company wrote: “we want to provide transparency, choice and accountability. Transparency through verified data that shows which campaigns drive measurable results, choice in how advertisers run campaigns across our platforms, and accountability through an audit and third-party verification.”
Bob Liodice, president and CEO of the Association of National Advertisers, said that these measures go “a long way to alleviate the concerns” that advertisers had been having over Facebook. He added: “that’s what we’ve been clamouring for – we’ve spent the last six months or so talking with Facebook about this. This is the appropriate blueprint and framework for us to make better marketing decisions.”
Dominion holds Facebook in its Global Trends Ecommerce Fund.
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