The Media Rating Council issues this accreditation
Media Rating Council of the US warned Facebook it could be denied accreditation because of the “deficiencies” in how its reports on the effectiveness of advertising on its products, read the letter sent from the Council to the company, reports The Wall Street Journal.
Media Rating Council’s accreditation is the “key seal of approval that gives companies the confidence they are getting what they pay for when it comes to advertising”, says The Wall Street Journal. The Media Rating Council ensures that the ad measurement provided by a publisher is reliable and valid.
Facebook is at risk of losing the MRC accreditation due to its ad data measurements and reports. Last year, Ernst & Young, the company that provides audit services, has found that Facebook doesn’t have an efficient or accurate system to report on the performance of ads. The social-media giant especially neglects the measurement of video ads.
“The Committee felt strongly that the lack of response and detailed action plans by Facebook within 60 days would lead them to take negative action,” states the letter sent from the MRC to Facebook. “This feedback should be considered a strong message to Facebook.”
Facebook says that these exchanges are part of the audit process. Right now, the company is under audit, the MRC confirmed.
“We will continue working with MRC on accreditation, as we have since 2016,” a Facebook spokesperson said.
Running ads is Facebook’s main source of revenue. Although the demand for digital ads dropped due to the pandemic, in Q1 2020, social-media behemoth collected $17 billion. That’s an 18% year-over-year rise.