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| The Facebook ad tool Conversion Lift fails |
Facebook acknowledged the failure of the conversion advertisement tool and it appears that fixing the issue could lead to huge losses for the company, not least because it could damage its self-reported reputation.
According to the report, there was a bug in Facebook's free convertor code that affected thousands of advertisers.
In the past year, advertisers using the latest Facebook advertising tools have received incorrect data by mistake.
The discovery of the vulnerabilities led Facebook to give Facebook millions of dollars in loans to some advertisers to compensate for incorrect estimates of the number of sales resulting from ad impressions.
Advertisers use conversion promotion research to measure the growth of their Facebook ads and make decisions about their Facebook spend.
The amount of compensation that Facebook offers depends on the advertiser's expenses. In some cases, the error means that the advertiser has received tens of millions of dollars in compensation.
The tool has not been fixed for 12 months and the issue persists between August 2019 and August 2020.
The Wall Street Journal said: Facebook presented technical issues to advertisers this month in calculating ad campaign effectiveness. This was a misinterpretation of the data that advertisers are using to determine how much they spend on their platforms.
The problem particularly affects certain categories such as retail, as marketers increased their spending on Facebook by 5% to 10% at the start of the pandemic this year.
The source pointed out that the problem affects media ads and Facebook competitors, as the tool can influence the marketers' decision to spend their budget.
Facebook said last week that it fixed the bug on September 1 and is working with affected advertisers.
A company spokesperson said: While we were improving the metering product, we encountered a technical issue that affected some conversion-boost tests. We have resolved this issue and are working with affected advertisers.
Facebook has confirmed that it will use its latest ad tool to provide one-time points to advertisers affected by this issue. Effects depend on how the tool is used.
Due to a year-long technical bug, he was unable to determine how many advertisers were affected by the search.