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Advertisers on Meta may be unknowingly competing against suspected scam ads that stay in auctions at higher “penalty bid” prices.
Internal documents obtained by Reuters estimate that around 10% of Meta’s 2024 ad revenue, approximately $16 billion, would come from scam ads and banned goods.
Although Meta disagrees with these estimates, the real impact for advertisers includes potential increases in CPM, brand safety concerns, and uneven enforcement risks.
What Advertisers Should Know
Meta reportedly displays an estimated 15 billion…
