A new report shows Facebook is struggling to count how many of its users actually have duplicate accounts and estimates the number to be much lower.
According to wall street journalFacebook employees said in an internal presentation this spring that the social media giant’s system for detecting double accounts undermines them.
A study of 5,000 recent sign-ups for the service reportedly indicated that at least 32 percent and up to 56 percent were actually existing users, calling many accounts “very prevalent.”
This would raise questions about the estimates Facebook gives advertisers about how many users they are likely to reach, potentially raising doubts about the mainstay of Facebook’s bottom line.
Facebook’s share price separately fell as much as 6 percent on Thursday after its rival Snapchat revealed that a new privacy crackdown on iPhones had eaten away at its ad revenue.
A Facebook spokesperson told wall street journal: “It is no revelation that we study duplicate accounts, and this snapshot of information does not tell the whole story.
“Nothing in this story alters the presumption of duplicate accounts that we disclose in our public filings, including new users, or the references we provide to our advertising products, advertising interfaces, our Help Centers and other places.” ”
He said advertisers continue to use Facebook because it gives them the results they want.
Facebook’s massive $964 billion (£699 billion) market value is based in part on its ability to give advertisers accurate figures, and many use Facebook’s estimates of their potential audience to tell how they spend their money. We do.
The company said in its quarterly public reports that about 10 percent of its nearly 3 billion listed users have fake or fake accounts.
According to WSJHowever, Facebook employees are concerned that its estimate for advertisers could count many duplicate accounts, which often occur when users are locked out of their original profiles and create new ones.
One memo reportedly found that Facebook estimated the number of regularly active users in their twenties in the US, its most lucrative market, often exceeded the total population of American twentysomethings.
The Journal said the researchers calculated that a specific type of ad campaign could cut its estimated reach by about 2.2 percent, or sometimes as high as 10 percent.
company is currently fighting a case By advertisers who accuse him of deliberately exaggerating the number of people his messages can reach, which Facebook denies.
Credit: www.independent.co.uk /