Adidas has stopped purchasing video ads on Facebook and is reviewing whether to cut its spending on the platform over concerns that its ads aren’t being viewed, Digiday reported citing unnamed agency executives who work with the brand. However, Adidas continues to work with Facebook-owned Instagram.
- Adidas, which recently completed an internal audit of its spending on Facebook, is frustrated by how the limited data shared by the social media platform hampers its ability to determine the efficacy of ads. As much as 30% of the company’s spend on Facebook could be wasted because of low viewership, one of the sources said.
- Viewability and retention rates on the platform haven’t been high enough to convince Adidas to continue advertising on Facebook. Last year, video ad views were as low as 22%, according to the report.
Adidas’ move to suspend its video advertising on Facebook underscores marketers’ growing frustration with a lack of transparency in digital media. Even as many brands continue to up their investments on digital platforms, marketers often struggle to determine the financial return for their spend. Recent research by the CMO Council found that 95% of marketers think digital media needs to become more reliable, and inaccurate or false digital media reporting has led 21% to cut their ad spend.
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