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According to the company, some players in the industry buy ad inventory cheap and sell it to clients at a markup, which obviously, Facebook doesn’t agree with, BusinessInsider reports.
Known as “arbitrage,” this practice is quite controversial in the adtech world, where lines aren’t that well defined.
And since many clients lack basic information about how online ad inventory is generated and sold, ad trading agencies have a way to make money.
But now the new Facebook policy, which is already online, clearly states new pricing transparency rules.
The company is clearly trying to cut down these profits made off of those who don’t have a good grasp on what such advertising means.
And since Facebook is one of the best advertising platforms for companies seeking to promote themselves online, measures like the one taken now are possibly quite handy, particularly for small companies that don’t have too much money to spend.
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Source: Associated Press
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