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Facebook shuts down ad buying platform after discovering ad fraud

Dive Brief:


  • Facebook is shutting down the demand-side ad buying platform it has been testing through its ad server Atlas, according to an announcement made by Facebook’s Head of Ad Tech David Jakubowski. 

  • Facebook made the move after discovering “many bad ads and fraud (like bots),” adding that they were “amazed by the volume of valueless inventory.” 

  • Facebook discovered that many ads being purchased through the platfrom were banner ads, but those ads were often being served to bots. Facebook found only two ad formats were delivering significant value  seven times greater than banner ads  to advertisers: native and video.

Dive Insight:


Ad fraud is a big problem for everyone, not just Facebook.


A recent report from the Association of National Advertisers (ANA) and White Ops, a digital ad fraud mitigation company, predicts that advertisers will lose $7.2 billion to fraudulent ad bot impressions in 2016. Two areas of digital advertising in particular were found to be especially vulnerable to bot fraud: Display media with CPMs over $10 had 30% more fraud than lower CPM media, and programmatic ads had higher bot fraud at 14% for display ads and 73% for video ads.


Facebook had been testing the programmatic ad buying platform on its ad serving platform Atlas, allowing marketers to use Facebook’s targeting power to buy ads programmatically on other websites and mobile apps. The company shut down the pilot after discovering too much wasteful or fraudulent inventory, especially with the banner ads being served through the platform. 


Despite that, Facebook did discover that native and video ads were delivering significant value. According to The Information, Facebook plans to ultimately build a new ad buying platform for these types of ads.


The Atlas ad tech project represents Facebook’s bid to compete with Google’s DoubleClick ad tracking platform, according to Fast Company. Google’s market-leading DoubleClick platform could be vulnerable to a Facebook competitor as it was built for desktop, not mobile. 


The ANA report offered marketers suggestions to address ad bot fraud, including understanding the programmatic supply chain, requesting transparency for inventory and traffic sourcing, and using third-party monitoring for all traffic.


Recommended Reading


Atlas: Facebook has pulled a big ad-tech project because there were too many bots and bad-quality ads



Facebook shuts down ad buying platform after discovering ad fraud

Facebook cracks down on marijuana firms with dozens of accounts shut down



<!–[if IE 9]><![endif]–>Facebook has been shutting down accounts operated by marijuana-related businesses.



Facebook has been shutting down accounts operated by marijuana-related businesses.

Photograph: Brennan Linsley/AP

Facebook has recently launched an aggressive campaign to rid its sites of some cannabis-related material, deleting or suspending dozens of accounts operated by marijuana businesses, most of which had operated for years without so much as a warning about offensive material.


“We tried to log into Instagram, and a message said we violated their policy, but they won’t say what that violation is,” said Rick Scarpello, CEO of Incredibles, a Denver-based edible company. “I’ve written them every day, saying I’m not doing anything illegal and please reinstate my account.”


Over the last five years, social media has become essential in the movement to legalize marijuana and as an advertising tool for the industry. Large groups of pot-loving activists on the sites can be mobilized during an election or marketed to by a galaxy of startup companies.


So shutting down accounts can be a significant setback for the companies – not just dispensaries, but also ancillary businesses.


Despite the fact that it doesn’t sell marijuana, Center Mass Media, a cannabis marketing company, said it has had multiple Instagram accounts deleted.


John Ramsay, Center Mass’s CEO, said there was a direct correlation between profits and the number of followers his company has, and starting over on social media has caused a significant dip. Deleting such accounts “has a monumental impact on businesses, after you spent so much time building up a network of followers”.


Additionally, social media has become the primary resource for marijuana consumers looking for information on changes in laws, product recalls, forthcoming elections and new medical studies. “The type of posts with the highest engagement on Facebook for us has been news and information,” says Joe Hodas, chief marketing officer of Dixie Brands. “It’s not the products or partying – it’s the news that does the best for us.”


Olivia Mannix, cofounder of the Cannabrand marketing agency, said that two years ago she found a way to run banner ads for marijuana businesses on Facebook by avoiding words like “weed” and “pot” along with any pictures of the product, before Facebook cut off her ability to run any ads. Now, she said, in addition to shutting down cannabis related pages, “they’ve begun deleting the profiles of the people running the pages”. She added that one client received a note from Facebook suggesting that person see a drug counselor.


A spokesperson for Facebook declined to comment on the record about any of these cases or the specifics of their policies toward legal marijuana businesses, only offering: “These pages have been removed for violating our community standards, which outline what is and is not allowed on Facebook.”


The only mention of marijuana on Facebook’s community standards page comes under the “Regulated Goods” section, which states: “We prohibit any attempts by unauthorized dealers to purchase, sell, or trade prescription drugs, marijuana, or firearms.”


The owners of accounts that were deleted say they never engaged in selling marijuana online, and while marijuana remains federally illegal, their companies physically exist within states that have legalized marijuana in some form.


It’s also unclear why ancillary companies have lost their accounts. Stash Tagz, an apparel company that sells cannabis-themed t-shirts, said its Instagram account was deleted after it posted a meme featuring a Rastafarian Santa Claus, which did not contain any marijuana use or products.


Instagram’s guidelines are somewhat more direct than Facebook’s: “Offering sexual services, buying or selling illegal or prescription drugs (even if it’s legal in your region), as well as promoting recreational drug use is also not allowed.” Instagram did not respond to requests for comment.


Considering that both sites are loaded with marijuana posts, the sites clearly can’t remove all of them or delete all the accounts associated with pot. A search for the hashtag #weed on Instagram returns a large number of pictures featuring cannabis products, plants, and smoldering joints, though the bottom of the page reads: “Recent posts from #weed are currently hidden because the community has reported some content that may not meet Instagram’s community guidelines.”


Several theories about why accounts are being shut down are being discussed in the industry. Some say Facebook is afraid of racketeering charges from the federal government (the same reason most banks won’t touch pot money), while others believe it is people within the industry flagging their competition’s posts and getting them shut down.


The crackdown on marijuana businesses on Facebook and Instagram could benefit marijuana-centric social media sites like Social High or MassRoots, where naysayers aren’t likely to complain about cannabis content.


“I had been advocating [for marijuana legalization] on Facebook, and noticed that friends weren’t interacting with me on the topic,” said Scott Bettano, CEO of Social High, which launched last year. “They were afraid of co-workers and family seeing them talking about it on Facebook. And that’s when I said the cannabis community needs their own social media platform where they can talk about it openly.”


Though these companies don’t exist in a social media vacuum. MassRoots, which launched in 2013 and has amassed over 775,000 users, uses Facebook and Instagram to promote its site’s content. After it collected more than 390,000 followers on Instagram within two years, Instagram pulled the MassRoots account three weeks ago. (This reporter wrote a news article for the MassRoots blog in January.)


There is concern that an industry-wide exodus from Facebook to sites like MassRoots and Social High would be crippling not just to the economics of legal weed, but also the culture.


“Social media provides the opportunity for a dialogue about cannabis, showing people that it’s normal. A lot of people still aren’t comfortable walking into a dispensary, but with social media you can create an image of a company that people can relate to and feel comfortable with their product,” said Lauren Gibbs, president of Rise Above Social Strategies, which helps marijuana companies cultivate an online presence.


Isaac Dietrich of MassRoots believes that there are policies that mainstream social media sites could implement to stay on the right side of the law when it comes to legalized marijuana.


“Alcohol companies have Instagram accounts that Instagram restricts to users that are 21 and older, and we would be more than open to those types of controls. But they don’t give us those options.” He added that MassRoots is currently only available in states that have legalized marijuana, a policy he says Instagram could implement “overnight”.


It’s possible that the wave of deleted accounts derived from a policy change regarding the companies, as many of them occurred within a matter of weeks of each other. Denver Relief Dispensary says its Facebook account was deleted two weeks ago after seven years of no incidents; the deletion was followed by the removal of its Instagram account days later.


And three weeks ago, three separate dispensaries in New Jersey lost their Facebook accounts on the same day. “We tried to take down anything we thought they objected to, like pictures or prices [of products], but we didn’t get reinstated,” said Andrew Zaleski of Breakwater Treatment and Wellness in New Jersey.


“These small businesses invest tens of thousands of dollars in building an organic following,” Dietrich said, “and that in turn drives a significant amount of business to these dispensaries. And then, all of the sudden, all of that money and time flies right out the window. It’s killing jobs and the growth of the industry, and it may well be holding back the progression of cannabis legalization in the United States. All we’re asking for is clear guidelines.”




Facebook cracks down on marijuana firms with dozens of accounts shut down

Real Publicists Break Down How PR & Digital Marketing Really Works, Really

Real Publicists Break Down How PR & Digital Marketing Really Works, Really | DJBooth


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An Ecommerce Christmas in July: TrueShip's New White Paper Breaks Down the Metrics

SCOTTSDALE, AZ, Jul 09, 2015 (Marketwired via COMTEX) — TrueShip’s (http://www.TrueShip.com) newest white paper is aimed at helping retailers understand that the start of the ecommerce holiday shopping season actually begins in July, long before Black Friday or Cyber Monday.


As retailers brace for the impending holiday rush, many are preparing well in advance, setting up their online storefronts to cater to early bird shoppers in a phenomenon that’s been coined: “Ecommerce Christmas in July.”


Juggernaut marketplaces like Amazon have recently gotten aboard the bandwagon, too, with their announcement of Prime Day — a marketplace-wide shopping event that caters to existing Prime customers and that aims to attract newcomers as well.


With online holiday shopping expected to exceed $60bn this year, the rush is already well underway for e-retailers. As stores stock their inventories and prepare their marketing plans, year-over-year statistics paint the real picture of just how healthy the sales can peak during the intensity of the heat and humidity in July.


TrueShip’s newest white paper offers a complete breakdown, and covers the following elements:




-- Online spending from 2009-2015.
-- Holiday shopping by the numbers.
-- The game-changing nature of mobile traffic.
-- Why desktops and laptops still convert more often.
-- How Cyber Monday will set new records (with illustrated infographic).
-- Where Amazon"s newly announced Prime Day fits into the puzzle.
-- Why Webrooming and showrooming will once again become shopping trends.
-- How social shopping will drive high referral values (with illustrated
infographic).
-- Why the shopping rush begins now, in July.
-- What stores can do to prepare for this rush (with illustrated
infographic).




“Retailers are bracing for what’s anticipated to be the healthiest online shopping season in history,” explained Michael Lazar, Director of Online Marketing at TrueShip. “Contrary to popular belief, however, that rush starts now; not on Black Friday or Cyber Monday.”


You can read TrueShip’s newest white Paper by visiting: http://www.tr ueship.com/blog/2015/07/09/an-ecommerce-christmas-in-july-the-holiday -shopping-rush-starts-now/#.VZ7gxkYY3QJ.


About TrueShip


#ShipSmarter – TrueShip is the original architect of multi-carrier ecommerce shipping software. ReadyShipper shipping software integrates into the most widely used shopping carts and online marketplaces. It is an easy-to-use order fulfillment solution designed to save e-retailers time and money.


Start a 14-day trial of ReadyShipper shipping software by visiting: http://www.TrueShip.com/products/ReadyShipper.


About ReadyReturns


#ReturnsHappen – ReadyReturns is a customer-facing, plug-and-play, self-service online product returns software solution. It integrates into virtually any website without any programming. ReadyReturns lets customers make returns from a website by filling out a simple form and printing the return shipping label. E-retailers set the rules of the returns, including things like return shipping and restocking fees.


Start a 30-day trial of ReadyReturns by visiting: http://www.TrueShip.com/products/ReadyReturns.


Embedded Video Available: https://www.youtube.com/watch?v=fdohbNGDiFI


Embedded Video Available: https://www.youtube.com/watch?v=lEgwtCcwjYk




Press Contact
Michael Lazar
Director of Online Marketing
Tel: (877) 818-7447
Email: support@trueship.com




SOURCE: TrueShip



mailto:support@trueship.com


(C) 2015 Marketwire L.P. All rights reserved.



An Ecommerce Christmas in July: TrueShip"s New White Paper Breaks Down the Metrics