Facebook Advertisers Angry About Major Glitch That Temporarily Spiked Prices

Last weekend around 2 a.m. Sunday, "Facebook's advertising system went haywire," reports Gizmodo, "overcharging customers and wasting money on ads that didn't work." Reports suggest Meta, the social network's parent company, charged some advertisers more than double what they agreed to pay, ranging from hundreds to hundreds of thousands of dollars. Meta briefly stopped showing ads on part of its network with practically zero communication to its millions of customers. The company confirmed the bug happened and promised to follow its "normal refund process," but shared very little about what went wrong. A Meta spokesperson described it as "a technical issue that has now been resolved" (adding that the glitch also appeared to a lesser extent on Instagram). But Alex Golick, the CEO of marketing agency Intensify told CNBC it was the worst Facebook glitch he'd seen in the decade he's worked in digital advertising - with one client burning through 90% of its ad budget by 9 a.m. And his entire customer base had similar problems:Golick said that all those advertisers had essentially just wasted most of their money for the day, spending roughly triple the amount they normally would to acquire a customer. "The results were horrendous," Golick told CNBC... For brands that are already lowering ad costs to manage through a sluggish economy and a mobile ad market that no longer allows for targeting based on user data, Facebook's miscue is more than just an unfortunate blip. In low-margin industries, where every dollar counts, it can turn a profitable weekend into a big loser, while also raising further questions about the reliability of Facebook's ad systems... Data analytics and marketing firm Varos provided data showing that, of the more than 3,000 ecommerce and direct-to-consumer companies that use its technology, the software bug caused a majority of them to experience a rise in cost per thousand impressions, or what those in the industry call CPMs. About 36% of companies were "very significantly impacted" by the bug, meaning their CPMs at least doubled, Varos said... Varos CEO Yarden Shaked the glitch resulted in a "bidding war for nothing." Data about the glitch provided by the advertising technology firm Proxima on 108 companies also revealed that these firms spent their "entire day's budget in the first few hours of the day," the company said...

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