[HN Gopher] Facebook reported fake numbers to advertisers
       ___________________________________________________________________
        
       Facebook reported fake numbers to advertisers
        
       Author : elorant
       Score  : 494 points
       Date   : 2021-02-19 14:34 UTC (8 hours ago)
        
 (HTM) web link (news.yahoo.com)
 (TXT) w3m dump (news.yahoo.com)
        
       | matchagaucho wrote:
       | I'm unsure how the label "Potential Reach" can be improved upon.
       | 
       | Whether an Advertiser can _potentially_ reach 100M people or
       | accounts is not their objective when setting up a campaign.
       | 
       | The invoice at the end of the month ultimately reveals the number
       | of ad impressions.
        
       | Razengan wrote:
       | To me the whole advertising racket has always seemed like a case
       | of an emperor with no clothes. Has anyone here ever made a
       | purchase that was influenced solely by an ad, or known any common
       | folk who did?
        
         | chillacy wrote:
         | I have but I don't click through the ad anymore. I just search
         | on Amazon for the thing and buy it, since it's usually cheaper.
        
         | LargeWu wrote:
         | I've done this occasionally. But really, how advertising works
         | is it builds up demand by repeated exposure. The rule of thumb
         | is that it takes somewhere around 7 interactions, on average,
         | before somebody makes a decision to purchase.
         | 
         | You want proof that advertising works? Facebook's revenues last
         | year were $85 Billion, mostly from advertising. And it's
         | growing every year. Merchants wouldn't be spending that kind of
         | money over a sustained period if they were seeing negative ROI
         | on their ad spend.
        
         | bluefirebrand wrote:
         | I've worked places where marketing seems like just a big shell
         | game.
         | 
         | Paying other companies for advertising on their platforms
         | meanwhile they are paying someone else, and that third party is
         | paying us.
         | 
         | All three marketing departments probably get a net 0 value from
         | it, all three marketing departments get to report their budget
         | spends and not get defunded, meanwhile producing nothing
         | concrete of value.
        
         | ttt0 wrote:
         | I hate ads so much, that the only influence they have on me is
         | that I will be _less_ likely to make a purchase.
        
           | lovecg wrote:
           | May I ask what brand of toothpaste do you happen to use?
        
             | bordercases wrote:
             | For me - one based on its expected functional properties
             | over brand recognition.
             | 
             | Not all advertising is educational.
        
             | Razengan wrote:
             | The cheapest/nearest. In most categories sometimes I can't
             | even recall the name of what I last bought.
        
             | bkirkby wrote:
             | i usually go with the cheapest.
        
         | davidivadavid wrote:
         | If by "solely by an ad" you mean the kind of scenario where you
         | once saw a single display ad on the side of a website, picked
         | up your phone and your credit card and ordered something --
         | that's not how advertising works.
         | 
         | But if you've heard of something like QVC, or have an
         | approximate idea of the revenue generated by the advertising
         | industry and the humility to think all of their customers can't
         | be wrong, you should be able to dispose of the notion that
         | you're pushing here.
         | 
         | Yeah, some people waste money on advertising. For some others,
         | it's a money printing machine. _Shrug_
        
         | Kamshak wrote:
         | I've done a few impulse purchases from FB / Instagram ads (a
         | razor, two ebooks, signed up to a subscription service). I'm
         | very happy with these purchases.
         | 
         | Are you saying advertising on FB/IG doesn't work in general?
        
         | phrogdriver wrote:
         | Marketing spend, especially online, is one of the most studied
         | inputs to business strategy. Long term lift studies of both
         | brand and direct response advertising show that it absolutely
         | drives consumer behavior. Whether or not that's good for
         | consumers might be debatable. I'm happy to buy unbranded
         | consumer packaged goods if I can ensure quality but there's a
         | reason Procter and Gamble can make >50% gross margins.
        
         | bkirkby wrote:
         | i recall one time in my teens watching saturday morning
         | cartoons and seeing an ad for golden grahams. i said to myself
         | "i'd like some golden grahams right now," so i hopped in my
         | car, drove to the grocery, and bought some golden grahams.
         | 
         | that's the only time i was consciously effected by
         | advertisement, but i also suspect the mind bending happens so
         | much on a sub-conscious level.
        
       | zupreme wrote:
       | It took time, and many thousands of dollars, before I realized
       | that the vast majority of "likes" my pages received as a result
       | of paid campaigns on FB were from accounts which were clearly not
       | real people.
       | 
       | A simple look enough of their profiles revealed that, like would
       | he expected from any fly by night CPA network, FB was using bots,
       | or at least straw man accounts run by low-cost staff, to like and
       | view content which FB was paid to advertise.
       | 
       | Worse, I found that the clickthrough metrics reported by them to
       | off-FB destinations I advertised NEVER was anywhere close to what
       | was reported on the destination, including when tracked by Google
       | Analytics.
       | 
       | In short: like-fraud, click-fraud, and more.
       | 
       | I cannot be the only person to notice these things. I assume it
       | persists because most people, self included, simply complain and
       | move on once we notice the "game" but don't sue.
        
         | benlivengood wrote:
         | Click-bots abuse everyone; a feasible strategy is running ads
         | on random news re-aggregator sites or other worthless sites and
         | buying the lowest cost ads on FB pointing to them. The click-
         | bots game the engagement/quality metrics to make the ads seem
         | legitimate enough to keep serving, and the click-bots have to
         | click on a wide selection of ads (including yours) to avoid
         | drawing suspicion. Normal traffic mixed with more click-bots
         | gets the revenue from the worst scammy advertisers (who may
         | also be operating the sites and injecting their own scammy ads
         | over legitimate ads they promised to serve)
         | 
         | It's basically arbitrage to sell spammy clickbait ads for
         | scammers at higher prices than FB would pay if they would even
         | allow the ads on their network.
         | 
         | Advertising networks try to detect and filter click-bots but of
         | course some percentage will slip through.
         | 
         | Switch to ad networks where you pay for conversions, not
         | clicks/impressions.
        
         | sillysaurusx wrote:
         | You're not the only person. Here's Veritasium reporting on it
         | in 2014:
         | https://www.youtube.com/watch?v=oVfHeWTKjag&ab_channel=Verit...
        
           | f430 wrote:
           | When I ran a campaign I experienced similar problems.
           | Received likes from very dubious looking Facebook profiles
           | who likes all sorts of random stuff.
        
         | iamacyborg wrote:
         | Fraud in advertising isn't just a Facebook issue. The entire
         | digital advertising ecosystem is chock full of fraud. Of
         | course, ad networks aren't incentivised to do much about it,
         | because they get their cut even when ad impressions are
         | fraudulent.
         | 
         | I spoke with Augustine Fou late last year for my podcast about
         | digital fraud, it was pretty eye-opening to say the least.
         | 
         | https://www.mql.fm/002-60-million-60-billion-ad-fraud-questi...
        
         | BugsJustFindMe wrote:
         | > _but don't sue_
         | 
         | Ok, so, honest question, why not? If you're correct then it
         | seems like a class action would be a slam dunk and wouldn't
         | cost you anything personally because class action lawyers are
         | happy to skim millions off the top of the settlement.
        
           | time0ut wrote:
           | Do they even have a right to sue or does FB force them into
           | arbitration?
           | 
           | I honestly don't know as I have never bought ads on FB. It
           | would not surprise me if all but the biggest enterprise
           | customers have horrible terms of service...
        
           | TLightful wrote:
           | 100%
        
             | TheOtherHobbes wrote:
             | In theory.
             | 
             | In practice FB's lawyers will produce a compelling bullshit
             | excuse to explain the poor results, the fake clicks, the
             | fake accounts, and the lack of sales.
             | 
             | Likely it will be the user's fault and FB can't be held
             | responsible if the user keeps spending money etc etc.
             | 
             | This is really an antitrust issue, because it's a
             | particularly nasty form of market monopolisation combined
             | with cultivated mental and emotional manipulation to keep
             | buyers locked in and spending.
        
           | xwolfi wrote:
           | Oh yeah organizing a class action against facebook, a "slam
           | dunk" :D
        
           | alpaca128 wrote:
           | If it's anything like the situation in Europe you can't
           | effectively sue Facebook without at least a couple millions
           | to potentially throw out the window. They pay a lot of good
           | lawyers to make the court proceedings as long-winded and
           | expensive as possible for the opposing party, relying on the
           | fact that very few have the resources, time and determination
           | to put up with this.
        
         | erehweb wrote:
         | Unlikely that these accounts were run by FB. More likely by
         | other companies with their own objectives, such as creating
         | plausible fake users.
        
           | cyberlab wrote:
           | > such as creating plausible fake users
           | 
           | Define a 'plausible' user? Facebook just wants your phone
           | number and uses that as the only metric to determine it's a
           | human behind the account. And as we know, there is no
           | shortage of phone numbers to use from places like Twilio
           | where you can mass-generate an army of Facebook users.
        
         | marketingtech wrote:
         | Page Like ads are the least ROI effective ads on Facebook. You
         | tell their machine learning algorithm to optimize for people
         | who will click "Like" on every page they see. That'll increase
         | your vanity metric and meet your stated objective, but it
         | doesn't drive business results for you because you're getting
         | the wrong type of customer.
         | 
         | If you tell Facebook's machine learning algorithm to optimize
         | towards purchases on your website or visits to your stores or
         | to users onboarding to your app, then you'll really see the
         | power of their beast. Those are the ads that people are
         | spending billions of dollars on, because the outcomes drive
         | real business value and have too much friction to be faked at
         | scale.
        
       | sjg007 wrote:
       | There is some adage that 50% of advertising is effective, we just
       | don't know which 50% it is.
        
         | dazc wrote:
         | Didgital advertising is touted as an answer to this with
         | targeted ads and tracking of conversions but, in truth, there
         | is still a lot of wastage and cannabilisation of sales you'd
         | have got anyhow.
        
       | annadane wrote:
       | And with the money they get they buy up Whatsapp and constantly
       | lied about it to regulators. Good to see where that money is
       | going :/
        
       | shadowtree wrote:
       | And why would the numbers of _any_ other platform be any better?
       | 
       | TikTok, Clubhouse, Snap - nobody independently verifies their
       | numbers.
       | 
       | It is even used to create virality. Those 1.5mil likes on a
       | TikTok? Why _wouldn 't_ TikTok spike that number to get
       | attention?
        
         | jimkleiber wrote:
         | Exactly this. Companies can use these numbers to appear bigger,
         | richer, more popular, more successful, etc., than other
         | platforms and we just trust they're reporting accurate numbers.
         | 
         | I also wonder what we could do to change it. Do you think
         | someone independently verifying the numbers would help? Who do
         | you think might do it and how?
        
         | blueblisters wrote:
         | Add LinkedIn too - I think they were reporting wrong numbers
         | for years. I think reddit is likely the worst with click fraud.
         | Reddit is not gated by user login so bots can click on ads
         | without having a user account. Being new to the ad space, they
         | likely don't have the sophisticated bot detection tools that
         | Google has to invalidate fraudulent clicks.
        
       | vmception wrote:
       | Please, regulators, hit FB with a gigantic securities fraud
       | lawsuit
       | 
       | They're not even well connected politically, there is no reason
       | not to curb stomp them
        
       | soared wrote:
       | Id be curious to see how potential reach is affecting revenue.
       | Like the article says the only way it has an impact on revenue is
       | through media planning. But it seems like very few large
       | advertisers would move some budget off Facebook if potential
       | reach was 10% lower. Very few advertiser's budgets are
       | constrained by audience size.
       | 
       | This honestly doesn't seem all that terrible, especially compared
       | to their past of inflating actual performance metrics. Yeah they
       | should've fixed it, but adtech platforms have hundreds of metrics
       | with little opportunity to verify them so I'm sure it's nowhere
       | near the worst example.
        
         | hobs wrote:
         | So your last sentence seems to let them off even more than they
         | are already being let off; given their take of billions of
         | dollars why should we give them extra leeway to keep fucking
         | up?
        
           | soared wrote:
           | I just don't think this is as major as many news outlets will
           | make it seem.
        
         | bogwog wrote:
         | > But it seems like very few large advertisers would move some
         | budget off Facebook if potential reach was 10% lower. Very few
         | advertiser's budgets are constrained by audience size.
         | 
         | Why wouldn't an advertiser invest less in a campaign if it
         | reached less people? That's why companies are willing to pay so
         | much more for a superbowl ad than a regular TV ad, because they
         | have more reach.
         | 
         | The problem I think is that a lot of advertisers, especially
         | smaller ones, wouldn't want to risk pissing Facebook off with a
         | lawsuit. Plus even if Facebook misleads advertisers in a way
         | that results in them spending more money than they otherwise
         | would...the fact is, Facebook could likely double or triple
         | their current prices and those same advertisers would still pay
         | it because they have no choice.
        
           | soared wrote:
           | Agencies/big brands look at each digital channel and how much
           | they could potentially spend reaching their target market and
           | then assign budgets months in advance. So if the potential
           | spend on Facebook is lower, it may get less budget in the
           | plan because the agency knows they won't be able to spend
           | more budget there.
           | 
           | My initial wording is weird.
        
           | indymike wrote:
           | "The problem I think is that a lot of advertisers, especially
           | smaller ones, wouldn't want to risk pissing Facebook off with
           | a lawsuit. Plus even if Facebook misleads advertisers in a
           | way that results in them spending more money than they
           | otherwise would...the fact is, Facebook could likely double
           | or triple their current prices and those same advertisers
           | would still pay it because they have no choice."
           | 
           | If the ads don't work, or do not deliver enough results for
           | the price, the advertiser will take their spend somewhere
           | else.
        
             | bluGill wrote:
             | The big advertisers are doing this. They know their real
             | numbers because they track results. They don't care what
             | facebook reports, they care about results vs costs. If
             | between fraud and ads that don't work only 1% of the ads
             | result in a customer, then the cost to get a customer is
             | 100 times the cost to get an impression: from there is is
             | easy math to decide if that is a worthwhile cost of sale to
             | buy all 100 ads to reach 1 customer.
             | 
             | If FB would/could cut down on fraud the cost of sales would
             | go down making their ads more valuable.
        
             | davidivadavid wrote:
             | This simple mechanism seems to escape a lot of people, it
             | seems.
             | 
             | Anyone moderately familiar with a concept like ROAS, even
             | with its limitations, should be able to avoid making such
             | wrongheaded arguments.
        
       | FatalLogic wrote:
       | In addition to the obvious conflict of interest in relations with
       | advertisers which is the focus of this story, this also implies
       | it would be in Facebook's interests to go easy on fake accounts
       | and tolerate their existence. That's troubling, and just in
       | itself it appears contrary to their public facing policy
        
         | elorant wrote:
         | I have a few fake accounts on FB, and my theory is that they
         | allow them as long as the engagement is high, aka having tons
         | of "friends" and likes/posts.
        
           | notahacker wrote:
           | My experience is that they don't care at all. Had a couple of
           | friendspam requests from profiles that made no attempt to
           | look like a real person, but were simply a pouting photo and
           | am invitation to follow a URL to an "adult dating" website
           | with a sketchy looking URL. Reported them both and Facebook
           | sent a polite generic message advising they had passed a
           | review but I could prevent them from attempting to contact me
           | in future if I wanted to.
        
           | devoutsalsa wrote:
           | Why do you have fake accounts? Just curious. The only reason
           | I'd want a fake account is because they don't have developer
           | accounts. I hate doing anything at a job that requires me to
           | use my personal Facebook account.
        
             | elorant wrote:
             | I use them to extract data, mainly liked pages from where I
             | can find specific companies, and there is a usage limit per
             | account.
        
         | nindalf wrote:
         | Why? Wouldn't the people working on fake accounts only care
         | about their own metrics? How would it affect them if some other
         | team's metrics are affected?
        
           | elorant wrote:
           | Say you and I both have a shop selling shoes online. If I use
           | fake accounts to click on your ads I "burn" your budget by
           | driving less sales to your bottom line, since the traffic to
           | your site is all fake. Assuming that you have a limited
           | budget that can make a lot of difference to your bottom line
           | versus mine.
           | 
           | This is a tactic broadly used in AdWords in the past, and I
           | assume that it's also used on FB too.
        
             | bluGill wrote:
             | Right, but if I track ROI I will notice and the value of
             | the ad spend goes down. I may decide not to buy the next
             | round of FB ads - there are other places to place ads, and
             | I'll keep trying until I find the ones that work. If
             | someone else gives a better ROI because while they have
             | less reach they prevent your click-fraud I'll go with them.
             | Sure I lose the FB only customers, but I may be able to get
             | enough to grow my business, particularly if I target repeat
             | customers well and so I don't need to constantly attract
             | new customers my smaller ad spend (including word of mouth)
             | may make me more profitable in the long run which is what
             | counts.
             | 
             | The above gets even worse when I tell my brother-in-law
             | that he shouldn't bother with FB ads for his new pet food
             | store, this other platform is a better value.
             | 
             | Thus it is long term to FB's advantage to make their
             | numbers real. I can't say if they will or not, but it would
             | be to their advantage.
        
           | buran77 wrote:
           | There may be clickfarms that have their interests
           | (accidentally) aligned with FB's in specific cases, which
           | would mean FB has no interest in cracking down on them. And I
           | wouldn't put it past FB to even indirectly operate such
           | clickfarms if this means they can offer some support for the
           | overinflated promises they make to advertisers.
        
             | nindalf wrote:
             | You misunderstand me. You speak of Facebook as a large
             | amorphous blob. But think of it in terms of people working
             | on these problems. Why should the fake accounts team care
             | about the metrics of the ads team? They will be rewarded
             | based number of fake accounts caught, presumably. Not ad
             | spend. So why would they not do their jobs?
        
               | buran77 wrote:
               | > Why should the fake accounts team care about the
               | metrics of the ads team?
               | 
               | Ok, now I understand what you meant. In this case it's
               | because the strategy comes from high up and (putting
               | plausible deniability of individuals like FB's CEO aside)
               | the manager of the "fake accounts" team got some
               | instructions from above to focus "here" not "there", and
               | this just happens to be in the best interest of the "ads"
               | team.
               | 
               | The employees themselves may be individuals but they're
               | there working for the vision of the company and CEO
               | (because it's usually the CEO who sets the course and is
               | aware of all these directives). They're not doing it for
               | the other team, they're doing it because whoever set the
               | strategy decided it's in the best interest of the
               | company.
        
               | nindalf wrote:
               | > focus "here" not "there"
               | 
               | What does this mean? Are they removing fake accounts or
               | not?
        
               | buran77 wrote:
               | Both? We don't live in a binary world my friend. They are
               | removing some fake accounts and not others. I have worked
               | in plenty of companies who were doing such a selective
               | job (I'd say all companies do this when it comes to
               | defending their interests) to know this isn't at all far
               | fetched.
               | 
               | Some departments are routinely instructed to turn a blind
               | eye to the actions of some but not others. Sexual
               | harassment is one topic that rubs me the wrong way since
               | I worked (and quit from) companies who were pursuing
               | these cases only if they were below a certain level in
               | the hierarchy. Above that it was "blind eye" all around.
        
               | bagacrap wrote:
               | You could easily imagine that team being understaffed
               | because of decisions made at the organizational level.
        
               | cool_dude85 wrote:
               | So, the fake accounts team does its job and identifies a
               | huge group of accounts that it alleges are fake. It goes
               | up the chain and nope, we won't shut them down, this
               | isn't clear-cut, we need more evidence, etc.
        
               | nindalf wrote:
               | Right right. But according to public statements, the fake
               | accounts team detects and takes action on tens of
               | millions of fake accounts a day. So ... maybe such a
               | directive doesn't exist?
        
               | buran77 wrote:
               | You started with a presumably correct statistic but then
               | drew the wrong conclusion. The police catches thousands
               | of criminals daily. So there must be no corruption
               | whatsoever at higher levels or else, presumably, the
               | police would catch them.
        
         | mountainb wrote:
         | Inflating user metrics is positive for manipulating advertisers
         | and for manipulating investors both. So far, the regulatory
         | agencies have been willing to look the other way despite the
         | potentially lucrative penalties it could extract from Facebook
         | by policing this practice.
        
       | agilob wrote:
       | When Uber discovered that 80% of their ads where (allegedly fake,
       | please don't sue me), it was a big issue, everyone was talking
       | about it and case is in court. When Facebook is doing the same
       | thing again and again and again, there's not massive backslash
       | against them? Do we even expect them to change a bit?
       | 
       | https://podcasts.google.com/feed/aHR0cHM6Ly93d3cub21ueWNvbnR...
        
         | chillacy wrote:
         | Uber's issues were with shadier ad networks afaik. Despite the
         | noise, fb is actually one of the better sources of digital ad
         | data, which speaks a lot about the dysfunction of the space
         | overall.
        
       | burmer wrote:
       | The article mentions fake or duplicate accounts but not those
       | that exist for dead people either [1] which would seem to become
       | more and more important over time.
       | 
       | 1. https://metro.co.uk/2019/04/29/50-years-therell-dead-
       | people-...
        
         | Bukhmanizer wrote:
         | This is one of those things that I've seen HN complain about
         | numerous times, but would you really want FB trawling through
         | the obituaries trying to find out if you're dead?
        
           | bluGill wrote:
           | Yes I would. There are a lot of people on my friends list (ie
           | those I went to school with years ago) who I wouldn't get any
           | notice they are dead without facebook telling me. I think of
           | one person who died in a motercycle accident, if it wasn't
           | for facebook I wouldn't know the difference between dead and
           | just quit showing up in my feed. It doesn't matter in the
           | long run as we never were more than classmates, but I'm still
           | glad I know.
           | 
           | The knowledge that someone is dead isn't very sensitive. I
           | still control how much facebook knows about me, but some
           | information is worth giving facebook because they will let my
           | friends know.
        
       | dd36 wrote:
       | An aside, I still receive Inc. magazine despite not renewing my
       | subscription 7 years ago... Is that to inflate the reach? I'm not
       | arguing it's illegal or anything. It makes me wonder how
       | widespread misleading audience numbers are in ad-based
       | businesses. Do I count? Do I count as reach for all the other ad
       | mailers I get but immediately toss in the recycle bin?
        
         | ezekg wrote:
         | This seems like a common practice for startups, at least in my
         | experience. I've worked at companies that boast they have
         | hundreds of thousands of users to their investors and on their
         | sign up pages, but in actuality, they have less than a thousand
         | active users. It's deceptive. Most users were never active to
         | begin with, yet outwardly they stretch the truth. Yes, you may
         | have a high user row count in the database, and you may also
         | have a high spam user count, but that means nothing and they
         | hide it.
        
           | johnchristopher wrote:
           | You say it's common so I suppose investors are used to it and
           | find out quickly?
        
             | jm20 wrote:
             | Yes any semi-experienced investor will immediately screen
             | for active users vs signups, and if they find out you're
             | trying to game the numbers it's usually a dealbreaker.
        
               | ezekg wrote:
               | You would think so. I've seen the presentation slides,
               | and I've seen the real production analytics. Totally
               | different. But alas, I've since exited the life of
               | startup employee and won't return.
        
         | colejohnson66 wrote:
         | Probably. If you toss them out, they don't know. With digital
         | ads, they supposedly have a way to know if you clicked (or even
         | bought something after clicking).
        
           | dylan604 wrote:
           | Great, I have to deal with a broken web experience because of
           | the heavy blocking all because of a suppoda?
        
       | biffstallion wrote:
       | What!?? A Left-leaning hi-tech company ... LYING ?? Come on now.
       | Don't forget they do all this "fact checking"... apparently NOT
       | on their own company.
        
       | abarringer wrote:
       | A contrary perspective... It could be they are using fake numbers
       | but also are effective for some small businesses. I used it for a
       | business and it drove tremendous sales. Everyone in the town that
       | we inquired of had seen at least one ad on their facebook feed in
       | a very short amount of time. All of this for a couple hundred $$.
       | 
       | Im a fb hater too. But it works for some small businesses.
        
         | worker767424 wrote:
         | The mid-size players I have friends in marketing at all have
         | decent success with running ads on Facebook, and they're all
         | tracking ROI. I've heard the platform isn't as mature as
         | Google, and I suspect a lot of issues are rooted in "move
         | fast."
        
       | sputr wrote:
       | I keep warning small time (ie most) FB page owners who advertise
       | on FB to be very very careful as they are being subjected to a
       | beefed up version of the psychological manipulation that regular
       | users face as they, not the regular users, are the main
       | customers.
       | 
       | Facebooks corporate incentive is to get you to FEEL like your
       | getting good value out of advertising on Facebook and to get you
       | addicted to doing it.
       | 
       | Not to actually deliver results.
       | 
       | So don't trust any metric they show you, because even if its not
       | a total fabrication it's still presented in a way to deceive you
       | to think its better than it is.
       | 
       | Always monitor your ROI and always calculate it using your truly
       | end goal (sales, or in the case of civil society some sort
       | engagement off Facebook that's tightly bound to you mission).
       | Likes, shares, comments and reach should NEVER be the goal. Even
       | if FBs interface is trying to convince you otherwise.
        
         | TechnoTimeStop wrote:
         | Facebook is probably lying about much more insidious things at
         | this point
        
         | soheil wrote:
         | > subjected to a beefed up version of the psychological
         | manipulation
         | 
         | Can you provide sources or evidence of this?
        
           | sputr wrote:
           | It's my pet name for "User experience". Because that's what
           | UX is. My sources are: any book on UX or website design :).
           | 
           | In it's good form it's learning how to design interfaces that
           | are intuitive (i.e. they lead you to what you need). In it's
           | bad form it's used to lead you to what the owners want (i.e.
           | conversion to sales in it's purest form, or, in the case of
           | Facebook, something much much worse).
           | 
           | I've been debating publishing a blog calling on the EU to
           | stop using the utterly incorrect term "social network" and
           | start using something more appropriate like "advertising
           | platform" or, even more appropriately something that includes
           | a nod to their primary factor of success - induction of
           | emotional liability and reactivity in humans.
        
           | jjj123 wrote:
           | There is no need for sources on this. This is how design
           | works in modern tech.
           | 
           | You build UIs in a way that improve your own metrics, which
           | in this case is probably ad spend. They've likely run
           | hundreds of A/B tests on the way ad data is displayed to try
           | and optimize for that metric.
        
           | dna_polymerase wrote:
           | Facebook is the company that admitted to fueling the Myanmar
           | genocide. If anyone has to produce receipts it's them.
        
             | soheil wrote:
             | As it relates to the ad UI.
        
               | dna_polymerase wrote:
               | Read into the books of Nir Eyal. Whatever systemic thing
               | large SV companies do tries to replicate his design
               | patterns.
               | 
               | A company that has a value system as crooked as
               | Facebook's can't be trusted.
        
               | orhmeh09 wrote:
               | What is Facebook's value system? Is it different from
               | other companies' value systems?
        
         | mrweasel wrote:
         | Not that it justify Facebook lying, but if Facebooks
         | advertisers are repeat customers, then apparently the fake
         | numbers doesn't matter. Customers apparently still feel that
         | their advertising campaigns have paid of... Or do they simply
         | don't measure the results independently?
         | 
         | Facebook is repeatable shown to be lying, manipulating, failing
         | to properly moderate their platform and having a general shady
         | business practise, yet their stock price keeps climbing,
         | they're not really punished in any meaningful way. It's
         | disappointing that business are allowed to operate in this way,
         | but I don't think anyone really care.
        
           | reaperducer wrote:
           | _Or do they simply don 't measure the results independently?_
           | 
           | My observation has been that for many, it's both "don't" and
           | "can't."
           | 
           | Facebook makes it easy for people to advertise. Auditing your
           | Facebook buy is a different skill set that requires different
           | thinking, and more time than most small business owners have.
           | So they just trust Facebook isn't lying to them, the way that
           | they trust the metrics that the local radio station salesman
           | gives them. Except that the radio station salesman will lose
           | his job if the numbers aren't right. There is no punishment
           | for Facebook lying to its advertisers.
        
           | BbzzbB wrote:
           | In a way, the more trouble FB gets without being scratched,
           | the more the sustainability of its business model is proven.
           | Regulatory changes are basically the main risk behind their
           | stock IMO, or else they wouldn't be trading at a discount
           | from their FAAAM peers. The more these attempts go no where,
           | the more FB bulls have a reason to remain as such.
        
         | Alupis wrote:
         | To make this worse - FB actively undermines your ability to
         | validate their results!
         | 
         | They remove OrderId's because they deem them "PII" (what!?) and
         | just report number of conversions and conversion dollar
         | amounts.
         | 
         | This, coupled with the complexity of referral tracking,
         | lookback windows, browsers clearing cookies, etc... it becomes
         | nearly (or completely!) impossible to validate any results from
         | FB's ad platform.
         | 
         | Added to that, FB's ad platform's goal seems to be to spend
         | your _entire_ daily budget... every single day... regardless of
         | ROAS. That 's just absurd.
         | 
         | Trust Us - they say...
        
           | tomnipotent wrote:
           | > They remove OrderId's because they deem them "PII"
           | 
           | This has always been a pet peeve of mine, and is clearly
           | intentional by Facebook to prevent businesses from confirming
           | and digging into results.
           | 
           | No other major advertising partner does this. Not Google Ads
           | or Bing, not even Outbrain or Criteo. If these services
           | report a conversion, they return to me the ID I passed to
           | them for the conversion (even if last-click doesn't match).
        
         | jariel wrote:
         | Anyone who is spending any reasonable amount of money knows
         | that. Remember that ad spend that's not conversion oriented is
         | really fuzzy anyhow. Small timers are not spending huge dollars
         | just to show people images of things.
        
         | JMTQp8lwXL wrote:
         | After spending $~25 on ads and getting absolutely no
         | conversion, I can assure you Facebook did a terrible job at
         | making me feel like I got any value.
        
           | sputr wrote:
           | You know the concept of "conversion".
           | 
           | So, so, so many people don't. Idea of ROI is foreign to them.
           | Facebook is going this whole "be your own advertiser" thing
           | and ... well, it's working.
           | 
           | They see the pretty graphs and big number ("You reached 50k
           | people!") and they thing it's fantastic. The idea that the
           | conversion from 50k impressions could be 0% ... does not
           | compute, because they imagine 50k people spending cognitive
           | energy on their ad ... not 50k people scrolling past the ad
           | never even noticing it.
        
           | faeyanpiraat wrote:
           | $25 is a very small amount, you need to experiment more,
           | driving traffic is only one part of the puzzle, you haven't
           | got enough data to confirm which part of your campaign is the
           | bottleneck to conversions.
        
             | [deleted]
        
             | seppin wrote:
             | I'm sure Facebook would say the same thing. "You need to
             | give us more money before we give you any value, or signs
             | of value."
        
           | wiether wrote:
           | You forgot a "k" after 25 I guess ?
        
             | faeyanpiraat wrote:
             | No way!
             | 
             | 25k gets you more than 50k clicks, which would require less
             | than a 0.002% conversion rate to produce no results.
        
         | throwawayfb69 wrote:
         | I have previously got a decent ROI from Facebook ads, but it
         | was also very evident that they were not providing the service
         | that they claimed. Whenever I ran specific locally targeted
         | ads, large numbers of apparently fake accounts from around the
         | world would like my business page: representing a significant
         | percentage of the clicks that Facebook was claiming.
         | 
         | Clearly, FB was reaching some relevant users, since I picked
         | some up as customers, but this was ridiculously padded with
         | users outside the demographic that I was paying for, and I had
         | to again figure out whether people were potential customers
         | (re-qualify them). This left a sour taste and, as a result, I
         | will not use Facebook advertising again.
         | 
         | I'm not sure why it's in Facebook's interest to lie like this.
        
           | HenryBemis wrote:
           | > I'm not sure why it's in Facebook's interest to lie like
           | this.
           | 
           | Looks like you are doing your homework. Not everyone does
           | though. Even if 60% of people who buy ads try to correlate
           | the data, well there is a 40% that doesn't. That's easy
           | money.
           | 
           | What surprises me is the coincidence that you ad drew the
           | attentio of fake accounts. So, who preserves a network of
           | fake accounts that will give you the false validation that
           | you ad is working?
           | 
           | I see the benefit to FB that these fake accounts exist (and
           | are NOT detected/eradicated).
        
             | throwawayfb69 wrote:
             | I was less immediately bothered about the fake accounts
             | ('like'-and-run at least is ignorable and does me no
             | significant harm, even if it harms my belief in FB's
             | authenticity and harms FB's reputation with me).
             | 
             | But, I was extremely bothered about apparently real people
             | contacting me who were well outside the demographic of
             | people that I was paying for. I spent time dealing with
             | them, and - as expected - they were unlikely to convert
             | into customers.
             | 
             | I would have re-employed FB 10 times over if I didn't
             | actively have to deal with so many contacts outside of what
             | I was paying for.
        
             | Red_Leaves_Flyy wrote:
             | Could a fake account network be trying to hide themselves
             | in plain sight by engaging with advertisements?
        
               | rtkwe wrote:
               | If the OP is targeting a specific region with their ads
               | why are random accounts from outside seeing those ads?
               | and if they're just looking around for random companies
               | to like why is that being credited to the ad buy?
        
               | Red_Leaves_Flyy wrote:
               | Spoofed gps?
        
               | jfk13 wrote:
               | My understanding is that the default behavior for
               | location-targeted ads on FB is that they get shown both
               | to users _in_ the relevant location _and_ to users who
               | have said they are  "interested" in it, even if their own
               | location is the other side of the world.
        
           | jcpham2 wrote:
           | Past experience echoes parent under multiple _local_
           | businesses. I feel like scammy and bogus likes might convert
           | better for a non local internet only type of business, not so
           | well locally
        
             | disgruntledphd2 wrote:
             | Buying likes is a pointless endeavour at the best of times,
             | and these are not the best of times to be buying likes on
             | Facebook (maybe 2008-11 it worked?).
        
               | rightbyte wrote:
               | You might buy likes to impress your boss' boss if you are
               | a marketer.
               | 
               | Ofent I feel marketing is some kind of scheme to keep
               | money flowing to marketing departements.
        
           | _jal wrote:
           | If would be more honest if FB would just outright sell likes.
           | 
           | What they're doing now is more like loot boxes.
        
         | tremon wrote:
         | _[company 's] corporate incentive is to get you to FEEL like
         | your getting good value out of [product]_
         | 
         | Isn't this the entire raison d'etre of marketing, in general?
        
           | sputr wrote:
           | Well, yes. But while the targets used to be people employed
           | by companies dishing out company money ... now it's A LOT
           | small time advertisers. Like civil society. You would be
           | surprised how few people, who advertise on Facebook have
           | heard of the concept of ROI. Most of these people are not
           | advertisers ... but are spending a lot of money on it.
        
         | seppin wrote:
         | If Facebook was a small company, this would constitute fraud.
        
         | spideymans wrote:
         | >Facebooks corporate incentive is to get you to FEEL like your
         | getting good value out of advertising on Facebook and to get
         | you addicted to doing it.
         | 
         | Even more reason for us to be doubtful about FB's claims that
         | small businesses would be decimated without FB's invasive
         | tracking.
        
           | cm2012 wrote:
           | If FB was actually completely forbidden from tracking, I'd
           | estimate 85% of small shopify stores would die with it. The
           | winners would be giant marketplaces like Amazon, who would be
           | the only reliable sources left of customer acquisition.
        
             | dannyr wrote:
             | So how did small businesses survive before Facebook? I'm
             | pretty sure small businesses existed back then.
             | 
             | /s
        
               | cm2012 wrote:
               | Reread my comment, I said Shopify stores. Local small
               | businesses have other acquisition methods (walk through
               | traffic, local search, etc.) and don't rely on FB.
        
               | reaperducer wrote:
               | _Local small businesses have other acquisition methods
               | (walk through traffic, local search, etc.) and don 't
               | rely on FB._
               | 
               | Facebook disagrees. It's even taken out full-page
               | newspaper ads to tell people that if small businesses
               | don't advertise (and permit invasive tracking) on
               | Facebook, they'll go out of business and take the economy
               | with them.
        
               | cm2012 wrote:
               | Small shopify stores are small businesses. Probably the
               | fastest growing category of small businesses.
        
               | throwawayboise wrote:
               | > It's even taken out full-page newspaper ads
               | 
               | LOL. This is quite a comment on their own opinion of
               | their ad platform's influence.
        
               | dillondoyle wrote:
               | HN loves to praise the digitization & automation of other
               | industries. Why is this different?
               | 
               | Retail is dying, malls are bankrupt.
               | 
               | COVID amplified this change and small business struggles.
               | Even big corps are losing retail to online sales, GME is
               | a meme example lol.
        
             | cwkoss wrote:
             | What percentage of small shopify stores' whole business is
             | dropshipping cheap Chinese garbage at huge mark ups?
        
               | notahacker wrote:
               | probably not higher than Amazon marketplace's...
        
               | bluGill wrote:
               | Less than you might think because of all the small stores
               | where the whole model is to offer something, collect
               | money, and not ship at all.
               | 
               | I don't buy from shopify or facebook anymore, and
               | probably won't even if they clean up their act.
        
               | stickfigure wrote:
               | Probably not as large as you think? Print-on-demand is
               | huge, and almost everyone prints domestically.
        
               | Spivak wrote:
               | That's the whole business of most stores. Trying to pin
               | that on the web hosting platform seems odd. Being on
               | Shopify is basically zero signal as to whether the
               | product is any good.
        
               | tomnipotent wrote:
               | > That's the whole business of most stores
               | 
               | Most stores buy and hold inventory, taking on the risk of
               | not selling that inventory. Dropshippers send the order
               | to someone else to fulfil, and are essentially glorified
               | lead generators.
        
               | pie420 wrote:
               | 105%
        
             | iamacyborg wrote:
             | > I'd estimate 85% of small shopify stores would die with
             | it
             | 
             | And nothing of value was lost.
        
               | dillondoyle wrote:
               | It's patronizing to just throw out and blanket judge so
               | many people and products just because you don't think
               | they have value.
               | 
               | There is value to the consumers purchasing products -
               | many of which are innovative and to be copied later once
               | successful. It's a giant AB test.
               | 
               | There is also value to the business owners, small, medium
               | and large.
               | 
               | You could apply that opinion to any product whether on
               | shopify or even bigger open marketplaces like amazon,
               | walmart
        
               | iamacyborg wrote:
               | I mean, I think you could pretty safely cull 95% of the
               | absolute junk on Amazon without any real loss (except to
               | Amazon's advertising business).
        
               | ahoka wrote:
               | Most of those are probably just drop shipping with no
               | real economical value.
        
               | iamacyborg wrote:
               | Except for Shopify.
               | 
               | I wonder what the ecological impact of all these
               | dropshippers is.
        
               | rtkwe wrote:
               | Isn't it roughly the same as any other online shopping?
               | The main difference is it's not getting warehoused in the
               | US first but most of the products will flow through the
               | same shipping channels.
        
               | iamacyborg wrote:
               | My assumption is that a traditional approach where a
               | retailer orders thousands of units at once has a lower
               | ecological impact than shipping items out on a purchase-
               | by-purchase basis. I could definitely be wrong though.
        
               | bluGill wrote:
               | I doubt it. Everyone driving to the local retailer uses a
               | lot of fuel. The truck uses more fuel than any two cars
               | (this varies, but we can assume one is a SUV so close
               | enough) for any distance, but the distance is overall
               | much less because each car is going to the store, while
               | the truck only needs to get from one house to the next,
               | something shipping companies optimize. thus the amount of
               | fuel assigned to any one package is less for the truck.
        
               | rtkwe wrote:
               | Depends a lot on the shipping method used between the
               | dropshipper and retail right? If the DS store is using
               | boats for their packages they're probably about the same
               | as that's at best what the retail group is using.
        
               | rightbyte wrote:
               | You are probably not wrong. In my experience online
               | retail ofent package stuff in the most ridiculously sized
               | containers too. Trucks driving around with air.
        
             | LexGray wrote:
             | Facebook has users build huge profiles on themselves. Is
             | there really 85% additional value stalking people over what
             | they are already willing sharing?
        
             | Red_Leaves_Flyy wrote:
             | What's your basis for this thesis? Likewise, how many of
             | those shops are dropshippers that never touch product?
        
               | jariel wrote:
               | Facebook is one of the only means to do reasonably
               | targeted advertising with a broad reach.
               | 
               | Google is keyword only, and that's limited. Banner
               | network display ads are useless.
               | 
               | The privacy debate is woefully lopsided by people who
               | have never spent a dime marketing. I suggest all the
               | startupy people on HN spend some time trying to get the
               | word out and then they'll realize what the 'hard part' of
               | the business is because it's not code.
               | 
               | Efficient advertising, which is to say getting in front
               | of people who have a legit curiosity for your product
               | with ads that are not distracting, is possible and ideal
               | for everyone, but can only be done with at least some
               | data.
               | 
               | The economy would grow literally by 1% more if we could
               | get people connected with the things they need, when they
               | need them and we'd all be better off.
        
               | Closi wrote:
               | > The privacy debate is woefully lopsided by people who
               | have never spent a dime marketing.
               | 
               | Why should marketers influence how much privacy I have?
               | Their incentive is for me to have as little privacy as
               | possible.
               | 
               | This is like saying anti-war campaigns are woefully
               | lopsided by people who have never sold munitions.
        
               | forgingahead wrote:
               | Suprised at the downvotes on your comment, but you're
               | right, Facebook provides an advertising targeting engine
               | that doesn't have a parallel. Whether that's good or bad
               | for is separate from whether it's a useful business tool.
               | 
               | @jariel can you share any resource for people looking to
               | understand and dip their feet running their own FB ads?
        
               | jariel wrote:
               | I would but there's actually quite an enormos amount of
               | information out there already.
               | 
               | Also, the pitfalls of FB ads are generally well known as
               | well, we all know their numbers are a little ragged and
               | we all know that 'likes' don't have much value in most
               | scenarios.
               | 
               | Frankly, I would encourage anyone to stick $20 into FB ad
               | platform and just run a few ads to drive some traffic to
               | their own pages. It's a powerful and revelatory
               | experience, advertising is a 'dark art' to too many
               | people but it shouldn't be.
               | 
               | The moment you are in a position of having to market and
               | sell a product, especially coming from another
               | discipline, your world turns upside down and you see
               | everything differently.
        
               | forgingahead wrote:
               | I've tinkered with it, and had poor experiences hiring
               | people to run FB ads, so any specific resources you can
               | recommend would be appreciated. Kind of like how I would
               | recommend Michael Hartl's Rails tutorial for someone
               | looking to explore Rails in a productive way.
               | 
               | There is certainly a lot of information out there but
               | much is generic, others are paid, and many are scams.
        
               | leesalminen wrote:
               | When it was time for us to start PPC ads for my B2B SaaS
               | product, I took a whack at doing my own FB and AdWords
               | campaigns. I found FB to be much more intuitive than
               | Goog. I uploaded some collateral I threw together and
               | targeted it towards people who were in specific Groups,
               | people who liked specific things and excluded people who
               | already liked our page. I clicked submit and after a day
               | we started seeing an uptick in leads. Real, actionable
               | leads. Meeting people at industry trade shows told me
               | that they saw our FB ad. It worked (and still works) well
               | for us in that small niche of the world with a well
               | defined target demographic. I never felt compelled to
               | hire anyone to manage it. I don't have any books to
               | recommend for you, but why not do some trial and error
               | with small budgets to see what works for you?
        
               | bart_spoon wrote:
               | This entire thesis hinges on targeted advertising being
               | effective. There is a growing group of people who are
               | increasingly doubtful of this [0].
               | 
               | I personally have worked as a data scientist trying to
               | assess the value generated by various advertising
               | campaigns, and I personally found that the field is rife
               | with egregious statistical misuse, usually because it was
               | necessary to prove significant ROI on advertising.
               | 
               | [0] https://thecorrespondent.com/100/the-new-dot-com-
               | bubble-is-h...
        
               | jariel wrote:
               | "This entire thesis hinges on targeted advertising being
               | effective. "
               | 
               | Targeted ads are unequivocally more effective than non
               | targeted ads, on the aggregate - there is no dispute
               | other than at the margins.
               | 
               | Do you think that advertising makeup to the general
               | population has the same effectiveness than advertising it
               | to women? Or women who have shown an interest in makeup?
               | 
               | Ads are complicated and nuanced, but everyone in the
               | industry already knows this.
               | 
               | There will always be science at the margins as we
               | discover the means by which people truly engage, but
               | otherwise, there is no arguing with core demographic
               | targeting. It would be like completely non-technical
               | people saying "Javascript is completely ineffective
               | because of null ambiguity" whereas it's universally used,
               | and the limitations of JS are recognized to all but the
               | most junior developers.
        
               | tomnipotent wrote:
               | The general consensus is that personalized advertising,
               | specifically, is no better than contextual advertising
               | that came before it. Everyone was fine and happy with
               | contextual advertising.
        
               | bluGill wrote:
               | Which targeted is ineffective.
               | 
               | Keywords can be useless while the whole field can be
               | useful. Which is to say noting that I'm searching for C++
               | and so advertising your compiler or programing class is
               | useless - I'm already a programmer (I just forgot the
               | exact spelling or order of arguments to the thing I need)
               | and my company has chosen my compiler. However if you
               | know I my hobby you can target me with your new drill bit
               | and be better yet.
               | 
               | Though the largest advertisers don't care. Coke doesn't
               | care that I don't like soda, they still want to target me
               | just in case I'm called to bring drinks to some event.
               | Ford can safely assume all Americans own a car and be
               | close enough to right. Likewise everyone uses toilet
               | paper (bidet users can be ignored) and soap (if you don't
               | use soap you should be the highest target, though the ads
               | perhaps should be different from those who use soap)
        
               | jariel wrote:
               | The 'C++' keyword however, already narrows the target
               | down to the 0.2% of the population, i.e. C++ devs. making
               | it 500x more effective than a non-targeted ad.
               | 
               | If only 10% of those typing C++ would ever be interested
               | in a course, then those are not bad numbers.
               | 
               | More nuanced: at the 'non-targeted' threshold the ad
               | would not make sense at all, total inefficiency. At the
               | targeted threshold of being able to target at least C++
               | devs, the ad probably starts to work.
               | 
               |  _That is the difference between a viable business and
               | not_
               | 
               | That means engagement, value creation, sales, C++
               | developers trained and ready for the market. This is
               | _extremely good_ for society. We definitely want aspiring
               | C++ devs hooked up with quality courses.
               | 
               | This anecdote very tangibly demonstrates the
               | effectiveness of targeting for individual companies ...
               | but it also points to the market efficiency that comes
               | along with good advertising.
               | 
               | If you have a startup, and you can't reach any of your
               | audience, you're dead. This notion of 'word of mouth' is
               | ridiculous as a business plan, it's exceedingly rare, and
               | usually it's not that anyhow in reality - it's usually a
               | form of effective social marketing by the early movers.
               | Clubhouse for example is being helped by the 'celebrity'
               | of the VCs behind it - they don't have mass market
               | following, but a very avid following in a certain niche
               | that will come onto the platform. I'm noticing a lot of
               | Marc Andreseen on Clubhouse, too much for a busy VC, but
               | not too much for someone who's hyping his own investment
               | and bringing in a lot of viewers, helping out a lot of
               | panels.
               | 
               | The essential nature of basic targeting is not
               | controversial, it's quite obvious at least at the most
               | crude level.
        
               | godelski wrote:
               | Coke doesn't advertise to get you to buy the product. In
               | many situations you don't actually have a choice
               | (restaurant, theatre, etc). They advertise to make you
               | feel a certain way about the brand. Car companies do
               | something similar. They aren't advertising to get you to
               | buy the car but associate a certain prestige with the
               | vehicle which in turn makes their actual target buy their
               | car. I'm not sure why everyone thinks ads are strictly
               | about buying things. There's political ads, religious
               | ads, pubic service announcements, etc. Ads are versatile.
        
               | bluGill wrote:
               | Thanks for making my point better than I did.
        
               | Red_Leaves_Flyy wrote:
               | This is an advertisement for _advertising_...
        
             | [deleted]
        
             | andreilys wrote:
             | They aren't forbidden from tracking.
             | 
             | They are being asked to get user consent to track, very
             | different things.
        
               | cm2012 wrote:
               | "If", I am proposing a hypothetical.
        
       | jandrese wrote:
       | I've heard a claim that Facebook used to lie extravagantly about
       | the numbers on video pieces, which is why so many outlets
       | "pivoted to video" abruptly a few years ago. Many people think
       | abandoning or cutting back on written content was a mistake and
       | those outlets are in worse shape today.
        
       | wwv25 wrote:
       | This has been well known for many years now amongst those in the
       | digital advertising business. And it's not just Facebook, but
       | Google, Pinterest, Bing, Amazon, etc. They use vague definitions
       | and slightly polished data to embellish the effect on marketing.
       | For example, by Pinterest's definition, they consider a
       | "conversion" to be an impression for an ad that converts to a
       | sale sometime within the next 30 days, regardless if a user
       | interacted with the ad (click, double click, etc) or had been
       | exposed by an ad for the same product on a different site. It's
       | an absurd metric definition.
       | 
       | No digital marketing managers are fooled by this. I mean c'mon,
       | given these companies' track records, you wouldn't blindly trust
       | their performance reporting. Those who manage ad campaigns almost
       | always correlate performance to metrics that are measurable on
       | their end. The most common are ROAS (return on ad spend) and
       | revenue. I think the only victims of this may be the individuals
       | and super small-time marketers with small budgets who are
       | inexperienced or lack measurable business outcomes.
        
       | marketingtech wrote:
       | No major advertisers rely on Facebook or any other ad platform's
       | reported numbers. The platforms are grading their own homework,
       | and even their abilities to do that are increasingly limited.
       | 
       | Companies spend millions of dollars on these platforms because
       | they know, directionally, that some amount of the advertising is
       | effective. Sales go up when they advertise, sales go down when
       | they stop.
       | 
       | They use the reported metrics from the platforms to see which of
       | their ad campaigns is relatively more effective than the next. No
       | experienced marketers rely on these metrics to be accurate when
       | making budget decisions.
        
         | ishjoh wrote:
         | > Companies spend millions of dollars on these platforms
         | 
         | I agree with your point on the large companies that can spend
         | millions of dollars.
         | 
         | The folks that really get hurt by this stuff are the smaller
         | businesses. It can be an expensive lesson when you think you're
         | getting value from these services because they're providing
         | bogus metrics. It's even more difficult if you can't correlate
         | it to online sales, things like restaurants/retail locations
         | this is especially difficult.
        
           | bquest2 wrote:
           | One thing that would help these small businesses would be SDK
           | of sorts that would help them do proper attribution
           | themselves.
           | 
           | Something that would help tie an ad click to an actual
           | purchase or an app download.
        
             | marketingtech wrote:
             | Right now, that's extremely difficult to do without leaking
             | private data. Google and Facebook experimented with it for
             | a while, but both killed the test products because it would
             | require them to trust advertisers with data that could
             | easily be de-anonymized. It's kind of a funny twist that
             | Google and Facebook are able to avoid offering this in the
             | name of user privacy, while the advertising industry is
             | begging them to share more user data.
             | 
             | That said, they're all part of an industry consortium
             | that's working on differential privacy algorithms that will
             | ideally allow businesses to check each other's attribution
             | without actually sharing the personal data involved.
             | https://developers.googleblog.com/2019/09/enabling-
             | developer...
        
             | efwfwef wrote:
             | I thought the pixel was exactly this?
        
       | suref wrote:
       | I had an ad on facebook for a website and I saw a lot of
       | attention on the post in form of likes and even comments but
       | almost zero clicks to the actual website. I'm never buying
       | another ad there, that's for sure.
        
       | TechnoTimeStop wrote:
       | Would anyone else be surprised if FACEBOOK IS COMMITING
       | SECURITIES FRAUD?
        
       | cm2012 wrote:
       | The genre of people who don't work in advertising complaining
       | about how Facebook is bad for advertising is a true HN favorite.
       | 
       | We get it, you don't like FB. That's fine. As an advertiser who
       | knows that FB is far and above every other attention based ad
       | platform (in effectiveness, transparency, scale, etc.), its like
       | listening to nails on a chalkboard to read 90% of the comments in
       | threads like these.
        
         | omginternets wrote:
         | I don't think that's fair. I can both recognize that FB is
         | better than nothing, whilst also accusing them of fraudulent
         | behavior.
        
         | HonestOp001 wrote:
         | What have been your strategies on Facebook that you have found
         | to work?
        
           | cm2012 wrote:
           | Depends what you're trying to do. This is a good place to
           | start: https://adespresso.com/guides/facebook-ads-beginner/.
           | I am not associated with Ad Espresso in any way.
        
         | efwfwef wrote:
         | This ^
         | 
         | It's mostly a hate post about facebook, rather than an
         | interesting post. When you pay for advertising, you are always
         | in the dark about the value you're getting unless you actually
         | actively try to measure it yourself. If you don't, then you're
         | committing a newbie mistake.
        
         | whatshisface wrote:
         | You should write a counter blog post explaining the case, and
         | evidence, for Facebook being a good platform. Then we could
         | have a real debate instead of flowing along with the
         | counterzeitgeist.
        
           | cm2012 wrote:
           | There are many counter posts. They will never, ever be
           | upvoted on Hacker News.
        
             | eslaught wrote:
             | Then show us some instead of waving your hands.
             | 
             | For what it's worth, I have no real stake in ads one way or
             | the other, but I would upvote a post if it was backed by
             | solid data.
        
           | hiq wrote:
           | > for Facebook being a good platform
           | 
           | That's not what OP claimed. OP claimed:
           | 
           | > FB is far and above every other attention based ad platform
           | (in effectiveness, transparency, scale, etc.)
           | 
           | So OP didn't say FB was good in absolute terms, but that it's
           | better than anything else. That's quite different, especially
           | in the context of HN, where we talk a lot about FB, but not
           | so much about other ad platforms.
        
         | glitcher wrote:
         | I agree with your nails on a chalkboard sentiment, but for me
         | it comes from the genre of people who do armchair meta-analysis
         | of the entire HN population.
        
         | lapnitnelav wrote:
         | What about actual open (to an extent granted) platforms as
         | opposed to those proto publishers / platforms like FB / TW /
         | ... ?
        
       | rubyist5eva wrote:
       | Twitter has the absolute worst ROI on ads I've ever seen, it
       | doesn't surprise me that Facebook inflates/fakes their numbers at
       | all.
        
       | [deleted]
        
       | spunker540 wrote:
       | The issue here is the "potential reach" calculation when setting
       | up an audience/targeting for a campaign. It has nothing to do
       | with the billing for actual impressions. If you say you want to
       | target "English speakers in the US" the potential reach may say
       | 200M. However your ad spend limits and frequency and bid options
       | and ad creative ultimately determine who sees the ad at what
       | price, and generally prevent you from ever hitting that max reach
       | anyways. Apparently that potential reach calculation was known to
       | be off by some percentage (maybe overestimating potential reach).
       | It has no bearing on what you get charged as an advertiser and I
       | doubt this disrupted any campaigns.
        
         | tylermenezes wrote:
         | The issue here is actually that the "potential reach" was
         | inflated by a large number of accounts which Facebook knew were
         | fake, but didn't care to remove. Those accounts were not
         | distributed evenly across all targeting parameters, which means
         | advertisers were setting up their audiences differently than
         | they may have otherwise.
        
       | supernovae wrote:
       | I totally believe most of facebook advertising is fake... but man
       | you're damned if you do and damned if you don't when it comes to
       | consumers.
       | 
       | Stop spending money on facebook and you will lose marketshare to
       | those that do - even if much of it is fake.
       | 
       | Make a better website with no ads, no trackers, no popups and no
       | distractions and people visit and leave quickly...
       | 
       | But.. if you do everything people hate, you seem to get enough
       | conversions to still be viable.
       | 
       | I guess tl;dr - most consumers don't care and especially the ones
       | who have money to spend. The ones that do care, don't spend money
       | and certainly don't do so with any altruism to those places that
       | respect their privacy/browser/sessions.
        
       | Havoc wrote:
       | Ouch. Not a good look when your business is essentially based on
       | trust that you'll show ads to as many real people as you say
        
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