RootZoo presses charges against Facebook for PPC discrepancy
Published: July 13th, 2009 by Last Click News
RootZoo presses charges against Facebook for PPC discrepancy | Related News
Facebook’s Pay-Per-Click (PPC) platform has come under fire as sports news site RootZoo has filed a lawsuit against the social networking site.
PPC is a simple method to generate revenue from online advertisements. Facebook allows customers to create adverts, which are then charged each time a user clicks on an advert. The more popular the advert, the more expensive it costs.
According to RootZoo, there is a significant discrepancy between the number of clicks they were charged for and the number of clicks that the advert actually received. In one of the daily click rates, RootZoo recorded 300 clicks but Facebook charged the site for 804 clicks.
This will present quite the problem to Facebook. The bad press will hurt their credibility and will rock advertisers’ trust on the Facebook online marketing platform—which is responsible for a bulk of the company’s revenue.
In response, Facebook denied the charges. Company representatives said that the lawsuit are “unnecessary” and “baseless.” MediaPost.com published Facebook’s official statement. The company said, “We have developed a series of sophisticated systems to detect suspicious clicks and ensure advertisers are not charged for this activity.”
Facebook said that if the company had been charged with invalid clicks, the social networking site would issue credits in accordance with the impact.
Source: direct traffic media
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Written by industry insiders, addressing these three issues:
1. Does the online media industry have a flaw in its reporting?
2. Is there over counting and double paying for conversions?
3. How do we properly attribute a sale with multiple media sources?
