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Advertisers sue Meta for allegedly inflating ad viewership in $7 billion lawsuit

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2024-03-30 00:30:04

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They claim that the social media giant exaggerated ad viewership figures by up to 400%, leading them to pay inflated premiums for ad placements on its platforms.

Potential Reach metric. The advertisers suing Meta allege that the Potential Reach metric used by the company to determine advertising costs relies on the total number of social media accounts rather than individual users. They argue that this approach is problematic because it could include bot and fake accounts, resulting in advertisers paying more money for their ads to be served to bots.

What Meta is saying. Meta denied the allegations, explaining that the price advertisers are charged is based on performance metrics – not the Potential Reach metric as claimed in the lawsuit. A Meta spokesperson told AdWeek:

What the advertisers are saying. Geoffrey Graber, partner at Cohen Milstein and lead counsel representing the advertisers, said:

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