Facebook to pay $40mn for overstating average time users spent watching video ads

The incorrect calculations had led advertisers to pay extra for video ads, reports said

by exchange4media Staff
Published - Oct 9, 2019 7:49 AM Updated: Oct 9, 2019 7:49 AM

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Facebook

Facebook will be paying $40 million to settle a class-action lawsuit for overstating the Average Time its users spent watching video ads for 18 months from 2015-16, as per media reports.

The social media giant was found to be incorrectly calculating average viewing time for video ads on its platform.

According to media reports, the incorrect calculations had led advertisers to pay extra for video ads.

The tech giant is reported to have counted video views that lasted at least three seconds and skipped shorter durations thus increasing the average length of a view.

From the $40 million, a chunk of it will go to those who bought ad time in videos. Some reports said $12 million has been set aside for attorneys of plaintiffs.

The amended complaint against Facebook said “the average viewership metrics were not inflated by only 60-80 per cent; they were inflated by some 150 to 900 per cent”.

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