How to spot deceptive ads backpage,advertisers backpage classification
Backpage, the world’s largest online classified ad marketplace, is a key player in the new ad-buying landscape, with its classifieds offering a lucrative, but potentially vulnerable, revenue stream for its advertisers.
With classifieds set to become a key way for ad agencies to reach potential buyers in the coming years, it has emerged that backpage has a serious problem with how its classified ad sites are operated.
The problems have been highlighted in a damning report from consumer group Choice.
Choice is calling for Backpage to be banned from operating classified ads, and is calling on the Federal Trade Commission (FTC) to do more to tackle the problem.
Choice’s report also says that Backpage is using its classified ads as a way to evade the FTC’s rules against deceptive advertising.
As a result, Choice has called on the FTC to put Backpage on notice that it must stop using its ad networks to evade its FTC-mandated reporting requirements.
In its submission, Choice also said that Backstreet had “deceptively promoted itself as a safe, trusted source of information about consumers and other advertising partners”.
Choice argues that BackStreet’s misleading advertising has led to a “massive spike” in the number of classified ads on Backpage.
Over a period of four years, Choice says Backstreet’s classifieds have been used to reach customers in over 200 countries, including in China, Italy, Brazil, Mexico and India.
Choice also alleges that Back Street’s advertising has generated more than $5bn in advertising revenue.
It also claims that Back street has failed to inform consumers that it has been advertising on its classified sites, despite a warning letter from the FTC that it would do so in the future.
Choice’s submission also claims Backstreet has been using its Adwords platform to evade FTC requirements, which means that it “has effectively circumvented the statutory reporting requirements of the FTC”.
The FTC’s new regulations require online advertising platforms to report data on the total number of ads displayed in their sites, as well as the types of ads that appear.
This data is used by ad networks, publishers and advertisers to decide which ads to show on each of their platforms.
This data is collected and maintained by Backstreet, which uses it to determine which ads will appear on its sites.
Choice points out that Backdoor is a large network with more than 50 million registered users, including more than a billion dollars worth of ads.
“As of January, 2015, Backdoor had displayed more than 10 million ads, including over $5 billion in ad revenue,” Choice wrote.
“This data suggests that Backword has been collecting, storing, and marketing data about its customers for years, which it has exploited to advertise on its platforms and evade FTC reporting requirements.”
Choice’s analysis suggests that backdoor is using this data to advertise its classified advertisements, rather than reporting the data to the FTC.
Backdoor, however, has told Choice that the data it has collected and stored is used only to ensure that its ads are displayed on its network.
However, Choice claims that while Backstreet uses this data for ad purposes, it does not disclose the data, nor do Backstreet or its partners share the information with the FTC or other regulators.
Choice is calling upon the FTC, as part of its ongoing investigation into Backstreet and other classified ad networks like Backdoor, to suspend Backstreet for six months, while it works on a resolution.
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