Governance
LinkedIn settles $6.6M lawsuit over inflated video ad metrics
OUR TAKEIt seems LinkedIn hit a snag this time, shelling out over $6.6 million to settle with advertisers. This reminds me of Facebook’s similar mishap with ad data transparency. Tech giants really need to step up their game in this area. LinkedIn denies any wrongdoing but is willing to pay up and e…
Headline
OUR TAKEIt seems LinkedIn hit a snag this time, shelling out over $6.6 million to settle with advertisers. This reminds me of Facebook’s similar mishap with ad data transparency. Tech giants really need to step up their game in this area. LinkedIn denies any wrongdoing but is…
Context
OUR TAKE It seems LinkedIn hit a snag this time, shelling out over $6.6 million to settle with advertisers. This reminds me of Facebook’s similar mishap with ad data transparency. Tech giants really need to step up their game in this area. LinkedIn denies any wrongdoing but is willing to pay up and even hire an external auditor for two years, which gives the market some reassurance. However, the root of the issue – inflating video ad ‘view’ counts by counting even when users scrolled past them – is quite amusing. Fortunately, affected advertisers can recoup some of their losses, which is a relief. Hopefully, these platforms will be more honest in the future and not waste advertisers’ money. –Miurio huang, BTW reporter Microsoft’s LinkedIn has agreed to pay $6.625 million to settle a proposed class action lawsuit accusing the company of overcharging advertisers by inflating video ad view metrics. This preliminary settlement was filed late Thursday in the federal court of San Jose , California, and now awaits approval from U.S. Magistrate Judge Susan van Keulen.
Evidence
Pending intelligence enrichment.
Analysis
The lawsuit, spearheaded by TopDevz of Sacramento, California, and Noirefy of Chicago, alleged that LinkedIn counted video ad “views” from users’ apps even when the videos played off-screen as users scrolled past them. The advertisers accused LinkedIn of artificially inflating ad metrics, leading to overcharges. This legal battle began shortly after LinkedIn disclosed in November 2020 that its engineers had fixed software bugs which may have caused over 418,000 overcharges, most of which were under $25. LinkedIn provided credits to nearly all affected advertisers at the time. Despite agreeing to the settlement, LinkedIn denied any wrongdoing. As part of the settlement, LinkedIn also committed to employing an outside auditor for the next two years to review its ad metrics, ensuring accuracy and transparency. The settlement encompasses U.S. advertisers who purchased ads on LinkedIn from January 2015 through May 2023. LinkedIn stated that the settlement “underscores our commitment to the integrity of our ads products and providing a trusted platform for our members and customers.”
Key Points
- Microsoft’s LinkedIn has agreed to pay $6.625 million to settle a proposed class action lawsuit accusing the company of overcharging advertisers by inflating video ad view metrics.
- Inflated metrics can lead to misguided investments and lost revenue, eroding trust in advertising platforms.
Actions
Pending intelligence enrichment.
