✋ Facebook lied to advertisers

Plus: Toast is eyeing a $20B IPO. Brought to you by The Hustle together with Attest Technologies Limited. February 23, 2021 [The Hustle] [The Hustle]( TOGETHER WITH [Attest Technologies Limited]( After 28 years, the masked music duo Daft Punk is calling it quits. We hope they get lucky with whatever they do around the world, but would love to hear them one more time when da funk is harder, better, faster. the big idea [Mark Zuckerberg]( (Getty Images / Drew Angerer) Facebook was caught lying to advertisers (again) Remember when Mark Zuckerberg battled the Winklevoss Twins to determine who created Facebook? The legal process uncovered messages from Zuck that said he wanted to do something (we can’t print here) to the [ears]( of the Winklevoss Twins. Based on a recent drop of unredacted court filings, it looks like Scrooge McZuck has been doing the same unprintable actions to advertisers. The remarks come from a 2018 California lawsuit... … which claims that Facebook “knowingly overestimated its ‘potential reach’ metric for advertisers,” writes [The Verge](. The core of the lawsuit is that the social media giant didn’t adjust for fake and duplicate accounts. In one nugget from the [filing](, Facebook told advertisers it could target 100m people aged 18-34 years old in the US even though there are only 76m people in that age group. Facebook COO Sheryl Sandberg knew about the issue Per The Verge, one Facebook product manager told Sandberg that some revenue should “never [have been] made given the fact that it’s based on the wrong data.” Another employee added the process was “deeply wrong,” but Facebook neglected to make a fix, saying it would have a significant impact on revenue. 3rd time’s the harm Antitrust expert [Matt Stoller]( notes that Facebook has already been busted on 2 separate occasions for lying to advertisers: - “Pivot to video”: In [2016](, Zucky McClaims told the world that Facebook was going all in on video, and it misled advertisers about video metrics to boost the program. - Measurement tool: At the end of 2020, Facebook told advertisers that its “conversion lift [tool](” (which measures ad performance) overestimated campaign results. While Facebook has largely avoided major repercussions for its activities, Stoller believes the tide is turning: - Australia is taking a tough (albeit [flawed]() position against Facebook in regards to hosting publisher content - Canada and the UK have called Facebook a [bad-faith]( actor for blocking Australians from seeing news - In the US, Facebook faces an antitrust [suit]( In sum, Facebook is facing attacks on its ears business from regulators the world over. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=Facebook+was+caught+lying+to+advertisers+%28again%29%0Ahttps%3A%2F%2Fthehustle.co%2F02232021-Facebook-advertising%3Futm_campaign%3DFacebook%2Badvertisers%26utm_content%3D02232021-Facebook-advertising%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( Snippets - Coinbase to $100B: The cryptocurrency exchange was [valued]( at just over $100B in the private markets, meaning it could see the highest-valued IPO of any tech company since Facebook. - Creatio stops bootstrapping: The Boston-based low-code automation platform for the CRM space [raised]( $68m after bootstrapping since its founding in 2011. - Spotify is launching an audio ad network. This is a big monetization [piece]( for the company’s recent binge on podcast tech and content. - Discovery+ heats up: The parent company of -- prepare yourself -- Property Brothers, Guy Fieri, and Shark Week announced its new streaming service will reach 12m [subscribers]( by March, up from 5m in December. - Luxury giant LVMH acquired a [50%]( stake in Jay-Z’s Ace of Spades champagne brand, which was launched in 2006. The value of the transaction was not disclosed. (For a history of LVMH, check out this Twitter [thread](). - WeWork co-founder Adam Neumann is nearing a [settlement]( with SoftBank that would pave the way for the real estate startup to go public. Neumann will sell his shares in the firm for $500m (half the original terms) to move on.  A toast to Toast [Toaster]( Everyone thought Toast was toast. Now it’s planning an IPO. You know the satisfying feeling you get when a toaster pops up two slices of beautifully crisp, golden-brown toast? That’s probably how Toast is feeling now. The Boston-based leader in software and hardware tools for restaurants was getting burnt last spring, but now it’s buttering up for an IPO. Toast’s turnaround wasn’t fun In April 2020, Toast CEO Chris Comparato [announced]( a 50% staff reduction through layoffs and furloughs after restaurant sales dropped 80% in March. But the company introduced new tools focused on food delivery and saw its valuation [double]( to $8B between February and November. The [newly planned]( IPO would value bread Toast at $20B. Unfortunately, the rest of the industry is still getting burned In December, the NRA -- “R” as in “Restaurant” -- shared [insights]( with congressional leadership that were quite troubling: - In October, 87% of restaurants reported a 36% drop in revenue year-over-year on average - 83% of restaurant owners said they expect sales to be even worse between December 2020 and February 2021 - 17% of restaurants -- more than 110k -- are closed permanently or for the long term Toast’s IPO isn’t a done deal. It’s also reportedly considering a sale or -- no surprise here -- a SPAC. Whatever happens, we’re raising one glass to Toast for its remarkable achievements, and another to toast the restaurant industry for brighter days ahead. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=Everyone+thought+Toast+was+toast.+Now+it%E2%80%99s+planning+an+IPO.%0Ahttps%3A%2F%2Fthehustle.co%2F02232021-Toast-IPO%3Futm_campaign%3DFacebook%2Badvertisers%26utm_content%3D02232021-Toast-IPO%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( SPONSORED How did Gymshark score a $1.3B valuation and win 2020? Consumer research. By [digging into their audience with Attest](, they discovered 50% planned to spend less on fitness clothing as a result of the pandemic. (Not great news for a brand built around workout gear.) But that same research[uncovered insights]( that allowed Gymshark to shift and meet their audience’s needs: - Pivoting their content marketing to focus on home workouts, since consumers expressed interest in adapting their workout routines - Launching a new mental health platform called Deload to address their new concerns (financial stability and stress) - Focusing on comfortable “rest day” clothing to capitalize on the athleisure trend The end result? A hugely successful 2020 and a long-term strategy capable of handling anything the market throws at them. Here’s the best part: Attest is [offering your brand a free 3-question survey]( so you can dig into your own consumers’ behavior. - Discover how recognisable your brand is with your target audience - Learn if people would choose your brand over your competitors - See how your brand ranks among your competitors Head over to [Attest]( to claim your free survey and start setting yourself apart from the crowd: [Your free survey →]( Tech Controversy [Boston Dynamics dog]( Source: MSCHF MSCHF takes on dual-use technologies. Boston Dynamics is not happy about it. MSCHF -- the viral internet art group -- has a new drop tomorrow called “Spot’s Rampage.” The group spent ~$75k to purchase one of those Boston Dynamics dog robots… and equipped it with a paintball gun. Starting at [1pm EST]( on Feb. 24, anyone on the internet can remotely pilot the robot around a small art gallery. Boston Dynamics is pushing back The robotics company [tweeted]( a statement last week saying that it “learned that an art group is planning a spectacle” and condemned “the portrayal of [its] technology in any way that promotes violence.” The drop shines light on the larger questions of dual-use tech: A popular [example]( of this is nuclear energy, which can provide clean power (nuclear plants) or cause great destruction (nuclear bombs). More recently, the rise of AI... ...has brought attention to how the technology can serve both civilian (show recommendations) and military (automated drones) purposes. Boston Dynamics writes that “provocative art can help push useful dialogue” but that MSCHF’s drop “fundamentally misrepresents Spot.” “We always see Boston Dynamics robots shown in nonthreatening and cute videos,” the MSCHF team tells The Hustle. “The reality is that all of this technology can be used for other purposes.” [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=MSCHF+takes+on+dual-use+technologies.+Boston+Dynamics+is+not+happy+about+it.%0Ahttps%3A%2F%2Fthehustle.co%2F02232021-MSCHF-Boston-Dynamics%3Futm_campaign%3DFacebook%2Badvertisers%26utm_content%3D02232021-MSCHF-Boston-Dynamics%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( SPONSORED Let’s play “guess the company” - It’s 1/50th the size of Google - Its tech helps transition from traditional cable to streaming TV - Its (relatively young) CEO has [banked $2.3 billion in stock alone]( since they IPO’d Think you know what company we’re talking about? Then you’re a better investor than us, ‘cuz we had no frickin’ clue. Fortunately, [Stock Advisor]( put it squarely in our investing sights by slapping their rare “All In” alert on it (something they only done 27 times in the past 27 years). [Sign up for Stock Advisor here]( to get the full rundown -- and if you don’t love it, they’ve got a 30-day 100% membership fee guarantee. [Skip the guessing →]( Tweet of the day [Fintech valuations] Source: Twitter (@AlexisOhanian) Fintech firms are exploding in value. Over the past few days, secondary trading in Coinbase (a crypto trading platform soon to go public) and Stripe (a payments platform) valued the startups at [$100B+]( each. The speed to a $100B valuation for finance firms is accelerating. It took Visa 54 years to break the mark while Square (11 years), Stripe (11 years), and Coinbase (9 years) have done it in a fraction of the time. This is not an apples-to-apples comparison (particularly when inflation is taken into consideration). Nevertheless, Reddit co-founder and prolific investor [Alexis Ohanian]( believes the next such firm will get to a $100B valuation in as little as 5 years. TRENDS Lessons from 100M+ products... We just released one of our most exciting Trends interviews to date. Ryan Hoover, the founder of Product Hunt, has seen more product launches than pretty much anyone. Since 2014, he’s seen what works, what doesn’t, and what’s going to be big. We sat down with Ryan for a discussion on where he’s seeing the biggest opportunities and what he’s currently investing in. When you listen to the interview, you’ll learn: - Which niches in fintech are seeing the highest ROI - How the no-code movement is providing amazing opportunities for anyone to build powerful software apps - How to define and build a powerful community that evangelizes your brand - And much more. If you’re not already a member of Trends, [sign up today for a $1 trial]( to get access to the full discussion. [Hear the full discussion →]( SHARE THE HUSTLE [Hustle Cons Greatest Hits ebook]( Over the years, we’ve learned… secrets. The business secrets, tips, and tricks that have helped founders go from zero to millions -- and even billions -- of dollars. Want to see ‘em? Just refer 3 more friends to The Hustle and we’ll send you our curated set of interviews with founders from brands like Zola, AWAY, Vungle, Bonobos, and more. Here’s a message you can use to share with your friends: Hey! Do you read The Hustle? It’s the best daily business newsletter out there -- only takes 5 minutes to read and you’ll sound like the smartest person in the room. Sign up here, it’s free: [ P.S. You can always check your referral count [here](. [Share The Hustle →]( How did you like today’s email? Today's email was brought to you by [@TrungTPhan](, [Jacob Cohen](. Editing by: Brad “Ad Man” Wolverton, Everett Possum (Appalachian Chef). [PODCAST]( [JOBS]( [ADVERTISE]( [CONTACT US](mailto:news@thehustle.co) [Facebook]( [Youtube]( [Instagram]( [Trends]( 2131 THEO DR. STE F, AUSTIN, TX 78723, UNITED STATES • 415.506.7210 Never want to hear from us again? Break our hearts and [unsubscribe](list=thehustle). [The Hustle](