Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Plaintiffs in a class action lawsuit against LinkedIn are warning marketers the professional networking site’s ads are fraudulent.
A software company out of California claims the system measuring performance on LinkedIn ads inflates the numbers by counting views that didn’t happen and clicks from accounts that aren’t real.
LinkedIn is projected to bring in $1.7 billion in revenue, has grown to include some 722 million members and employs more than 10,000 in offices worldwide, according to the complaint.
The professional network relies on advertising to support the business, the bulk of the ads coming from small businesses, according to the class action lawsuit.
TopDevz LLC, a named plaintiff in the class action lawsuit, reports using various types of LinkedIn ads to promote its business. The company says it was told by LinkedIn there was value in buying advertising space on the networking site and was promised “high-quality professional audiences.”
TopDevz says in the class action lawsuit it was told users “are not just coming to LinkedIn in huge numbers; they’re engaging with a huge purpose … specifically to connect to networks, brands, and opportunities by engaging with high-quality content across the LinkedIn platform.”
The problem, according to the plaintiffs, is that there’s no way to verify these promises made by LinkedIn. Marketers buying LinkedIn ads are forced to depend on metrics provided by LinkedIn.
LinkedIn blocks advertisers and the public from seeing the data used to determine these numbers of clicks, impressions and views, instead offering opaque reports with bloated, inaccurate numbers, the plaintiffs allege.
This lack of transparency allows LinkedIn to count metrics other advertising systems throw out, the class action lawsuit claims.
TopDevz says as a result, metrics on its LinkedIn ads were based on fake accounts, misclicks and bot traffic. The company claims investigations and studies done by digital marketing firms have shown LinkedIn ads count these dubious online actions as legitimate business.
RMG, a digital marketing agency, found a webinar they promoted with a LinkedIn ad got zero clicks, according to professional business speaker Samuel Scott.
The plaintiffs point specifically to Google Ads, which, unlike LinkedIn ads, allows for third-party auditing of its metric data and does not count misclicks or bot accounts.
“The metrics LinkedIn gives advertisers regarding the nature of its audiences and user engagement are systematically distorted,” TopDevz said in the class action lawsuit.
The “second-price” auctions held to sell LinkedIn ads leaves digital marketers pressured to pay the highest price while having blind faith in the ad’s ability to perform, TopDevz says.
Furthermore, TopDevz alleges LinkedIn knew its ads were based on bogus metrics. The class action lawsuit cites a Wall Street Journal article published in November when LinkedIn admitted a bug led to over-reporting ad impressions and video views.
The issue inflated the LinkedIn ad numbers from more than 418,000 clients marketing on the platform for over two years.
The class action lawsuit claims LinkedIn’s CEO Ashkan Rajee sent an email to the company explaining their LinkedIn ads “may have over-reported” some spots, but the company alleges LinkedIn didn’t fix the bug until last month.
TopDevz’s class action lawsuit marks the second recently filed against LinkedIn.
The issue of inaccurate metrics on LinkedIn ads is the subject of a complaint filed by lead plaintiff Drew Krisco, who alleges the performance on advertising spots he bought promoting his real estate business were distorted by bogus click counts.
TopDevz is joined by a second named plaintiff in its class action lawsuit; Noirefy Inc. is also listed as a plaintiff and alleges similar claims surrounding LinkedIn ads it purchased over the last six months.
The plaintiffs are formally accusing LinkedIn of violating California’s Unfair Competition Law and of fraudulent misrepresentation, fraudulent concealment, breach of implied duty to perform with reasonable care and breach of implied covenant of good faith and fair dealing.
The plaintiffs are seeking recovery for advertiser losses and any equitable relief.
Do you use LinkedIn ads to promote your business? Let us know why or why not in the comments below.
Counsel representing the plaintiffs in this class action lawsuit are Marquel Reddish, Warren Postman and Jason Ethridge of Keller Lenkner LLC.
The LinkedIn Ads Class Action Lawsuit is Topdevz LLC, et al. v. Linkedin Corp., Case No. 5:20-cv-08324-SVK, in the U.S. District Court for the Northern District of California, San Jose Division.
Read About More Class Action Lawsuits & Class Action Settlements:
One thought on Distorted LinkedIn Ads, Bogus Metrics Alleged In Class Action Lawsuit
I think I only clicked on about 7 ads on LinkedIn. I wish you luck.