Analyst says Facebook Inc Is Exaggerating Ad Reach Data By Millions
Facebook might be inflating the number of people who see advertisements on its platform, according to Pivotal Research Group analyst Brian Wieser. He has a Sell rating on the stock with a price target of $140. geralt / Pixabay What’s the problem with Facebook ad reach? According to Facebook’s ad manager, advertisements on the site reach 41 million people aged between 18 to 24 and 60 million between 25 and 34 in the United States. However, U.S. census data suggests that last year, a total of 31 million people were in the age group of 18 to 24 and 45 million were in the 25 to 34 age group. “While Facebook’s measurement issues won’t necessarily deter advertisers from spending money with Facebook; they will help traditional TV sellers justify existing budget shares and could restrain Facebook’s growth in video ad sales on the margins,” said Wieser. Rubbishing the whole report, Facebook told Reuters that its reach estimates are designed in a way...