News

LinkedIn, a unit of Microsoft (MSFT), agreed to pay $6.625 million to settle a class action lawsuit accusing it of overcharging advertisers by inflating video ad metrics. The preliminary settlement, awaiting approval from a U.S. Magistrate Judge in San Jose, includes provisions for LinkedIn to hire an outside auditor to review its ad metrics for two years.

The lawsuit, initiated by TopDevz and Noirefy, alleged that LinkedIn counted video ad views even when videos played off-screen as users scrolled past them. This followed LinkedIn's 2020 disclosure of software bugs that led to overcharges.

Market Overview:

• LinkedIn settles lawsuit for $6.625 million over inflated ad metrics.


• Settlement requires LinkedIn to hire an auditor for ad metrics review.


• Case involved alleged overcharging of advertisers.

Key Points:

• LinkedIn's settlement covers ads purchased between January 2015 and May 2023.


• Advertisers alleged inflated ad metrics from off-screen video plays.


• Lawyers may seek up to 25% of the settlement amount in legal fees.

Looking Ahead:

• LinkedIn commits to maintaining ad metric integrity.


• The settlement highlights issues in digital ad measurement.


• Future scrutiny expected on ad metrics across social platforms.

This settlement marks a significant resolution in the digital advertising space, underscoring the challenges and complexities of accurately measuring ad engagement. LinkedIn's agreement to hire an external auditor reflects a commitment to transparency and integrity in its advertising practices.

As the industry continues to grapple with issues of ad metric accuracy, this case sets a precedent for other platforms to enhance their ad measurement systems. Advertisers and consumers alike will be closely watching the implementation of these measures and their impact on the broader digital advertising ecosystem.

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