Facebook Inc was willing to offer millions of dollars after discovering a glitch in the tool that tells the advertisers how effective their ad is, as a credit to the advertisers. The effectiveness of the ad can be understood by driving results like getting consumers to download an app or purchase a product. For 12 months Facebook’s “conversion lift” tool overestimated some campaign results. The advertisers had been told by the company. The glitch had changed the data that the advertisers use to decide how much money should they should spend with the company. Facebook had discovered in its system to measure the advertisement campaigns, and it not going to dent Facebook’s AD Revenue. Some ad buyers have said that when many businesses are navigating by cut cost and making sure their ad spending performs through pandemic the latest gaffe have hurt their confidence.
OMD’s global chief Florian Adamski executive commented that Omnicom Group Inc. media agency OMD Worldwide is finding out how the errors have affected some client’s investments before accepting the credits. He also commented that this was not an easy fix like paying a hundred to thousand dollars or even million bucks, we have to rectify the damage that has been caused and make sure that it will never happen again. This case is acute to some like retail, where they are spending 5% to 10% more on Facebook and other performance-centric advertisement channels to recover the business loss due to the pandemic that was caused in the early period. Chief executive of one digital agency that spends hundreds of millions of dollars advertising on Facebook every year. Facebook’s offers of credit have expanded to some advertisers those who undetected error and used the tools from august 2019 to august 2020. A Facebook spokesperson said in an e-mail that they found a technical issue that impacted some conversion lift tests while making improvements to their measurement products.
The size of the ad credits will be around 0.5% of affected clients at one large buying agency of annual budgets around the time of the glitch. Facebook commented that they fixed the error in September and told the advertisers this month according to a memo of the clients from Facebook.
