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Election 2020

Facebook’s botched election ad ban already blocked preapproved ads, including Biden’s

The company stopped ads that had already been approved and paid for from running, sparking outrage among political campaigns.

Joe Biden

Some political ads, which were already running on Facebook, ended up getting blocked as part of the company's new ban, which the company attributed to "data lags."

Photo: Gage Skidmore/Flickr

Facebook's ban on all new political and social issue ads leading up to the U.S. election is already causing chaos. On Tuesday, the company began prohibiting all new ads related to politics and social issues from running on the platform, instantly prompting an outcry from political groups who said some of their ads which were already running on the platform ended up getting blocked too. That included ads from Democratic presidential nominee Joe Biden's campaign, according to a source familiar with the situation.

"Facebook: Trust us, we will be able to execute our silly, performative preelection hoop-jumping exercise 100% effectively," Biden's digital director tweeted shortly after the ad ban went into effect. "Also Facebook: [immediately breaks within seconds of launching the silly, performative preelection hoop-jumping exercise]."

According to a message sent by a Facebook representative to progressive advertisers, which was reviewed by Protocol, the company attributed the issue to "data lags."

"On October 27 at 12:01AM PT, we started pausing ads about social issues, elections or politics in the U.S. without impressions to begin the restriction period. We are aware that a subset of ads may show as paused that delivered impressions before 12:01 AM PT," the message read. "Once an ad has been actioned (e.g. paused, stopped - whether by Facebook or by the advertiser) it can take a few hours to reflect in our system correctly. Any ads that met the criteria to run during the final campaign will be eligible to run once we've resolved any data lags. We apologize for any inconvenience."

Asked for comment, Facebook directed Protocol to a tweet from its head of product management Rob Leathern. "We're investigating the issues of some ads being paused incorrectly, and some advertisers having trouble making changes to their campaigns," Leathern wrote, several hours after this story originally published. "We're working quickly on these fixes, and will share an update once they are resolved.

On Tuesday morning, Mark Jablonowski, managing partner of the digital targeting firm DSPolitical, said he noticed ads that had been running on behalf of a range of his Democratic campaign clients were suddenly blocked. Jablonowski reached out to Facebook, but as of the early afternoon, hadn't received any response. President Trump's digital director Gary Coby didn't respond to a question about whether the Trump campaign's ads had been affected.

Chris Herbert, who runs Facebook ads for the group Defending Democracy Together, said 75 percent of his ads were blocked on Tuesday, despite the fact that they were running before the cutoff. Herbert said the issue had been mostly resolved by Tuesday afternoon, but that a handful of ads are still disabled.

It wasn't just political organizations lashing out at Facebook. Don Haas, director of teacher programs at the Museum of the Earth in upstate New York, said ads for the museum's upcoming climate change exhibit were also blocked. Those ads were not previously running, but Haas said he and his team were unaware that they would be impacted by Facebook's ad ban, which it announced earlier this month. "It's incredibly frustrating for many reasons that Facebook is blocking these ads," Haas said.

Not everyone was taken by surprise by the ban, though. Digital advertisers working on political campaigns had been preparing for Facebook's new policy for weeks, ensuring that they had all of their ads submitted, paid for and approved before the company's deadline. "Orgs & campaigns worked to rethink election week strategies and got all ads in by midnight (a lot by Friday of last week just to be sure FB would approve). This morning, orgs and campaigns woke up to a bunch of disapproved ads that Facebook said would be fine. BIG YIKES," Hector Sigala, who served as Bernie Sanders' 2016 digital media director, wrote on Twitter Tuesday. "I get it, it's tech and buggy and things break. But don't roll out such huge changes to your platform, 7 days before E-Day, impacting $millions in investment aimed at turning out voters when so much is at stake without ensuring it is 10000000% going to work."

Facebook announced the ban in hopes of preventing misinformation about the election results from spreading through ads. The company previously said it expects the ban on new ads to last at least through election week, but said that was subject to change.

Update: This story was updated at 2:24 p.m. PT to include a comment from Facebook.

Protocol | China

Everything you need to know about the Zhihu IPO

The Beijing-based question-and-answer site just filed for an IPO.

The Zhihu homepage.

David Wertime/Protocol

Investors eager to buy a slice of China's urban elite internet will soon have the chance. Zhihu, a Beijing-based question-and-answer site similar to the U.S.-based Quora, has just filed for an IPO to sell American Depositary Shares on the New York Stock Exchange.

What does Zhihu do?

Zhihu is China's largest online Q&A platform — the name comes from the expression "Do you know?" in classical Chinese. It was founded 10 years ago by Yuan Zhou (周源), a former journalist, and spent two years as an invite-only online platform. It quickly built a reputation as a source for quality answers and has drawn a community of elite professionals, including ZhenFund managing partner Bob Xu and venture capitalist Kai-Fu Lee, also an early investor.

Over time, the Chinese-language Zhihu has become more mainstream, and now says it hosts 315.3 million questions and answers contributed by 43.1 million "creators." (Quora, about one year older than Zhihu, had almost 61 million questions and 108 million answers by the end of 2019). The website has grown into a content platform where people also keep diaries, write fiction and blog as social media influencers.

Zhihu users do not look like China as a whole. Most than half are men, most live in "Tier 1" cities and more than three-quarters are under 30 years old.

Zhihu continues to emphasize the quality of its content. "Zhihu is also recognized as the most trustworthy online content community and widely regarded as offering the highest-quality content in China," its prospectus says.

Zhihu's financials

Zhihu registered for its IPO via the Jumpstart Our Business Startups Act, a.k.a. the JOBS Act, which has reduced disclosure requirements for companies with less than $1.07 billion in annual revenue. Zhihu's revenue doubled from 2019 to 2020, but still only reached $207.2 million, and the company is short of profitability with a 2020 net loss of $79.3 million. The company says it's "still in an early stage of monetization" with "significant runway for growth across multiple new monetization channels."

Trend lines are good. Zhihu has managed to double revenue while keeping expenses largely constant, with selling and marketing aimed at growing Zhihu's user base as the biggest single expense.

The company is trying to diversify its revenue streams. In 2019, 86.1% came from advertising. 2020 saw advertising account for 62.4% while "content-commerce" — meaning native advertising — took in 10%. The rest was mostly paid memberships.

What's next for Zhihu

After years of evincing a relaxed attitude toward monetization, Zhihu is putting itself in the hot seat to do just that. Zhihu is betting that monetizing Chinese web users will get easier over time. The prospectus describes "significant growth potential" in China's "online content community market" and says average revenue per user in China is expected to more than triple from about $55 in 2019 to about $199 in 2025, with revenue in the overall market reaching a projected $200 billion in 2025.

The company looks like it will basically try everything to monetize, and see what sticks. It plans to "ramp up our online education service" and to "continue to explore other innovative monetization channels, such as content e-commerce and IP-based monetization."

The prospectus also mentions AI frequently, touting Zhihu's AI content moderation tool wali as well as a "question routing system" and "feed recommendation and search systems." However, the depth and quality of content remains far more important to Zhihu's success. Users have joked on Zhihu about the poor quality of its wali filter.

What could go wrong?

Zhihu could fail to turn a profit. Like most content platforms, Zhihu has found it hard to monetize its traffic and the vast amount of free content at its core. The platform was built on the premise that anyone can acquire professional knowledge easily, which means users are not inclined to pay.

Since 2016, Zhihu has tried many monetization models: paid physical/virtual events, online courses taught by its top creators, premium memberships and paid consulting services. None have been a hit. Zhihu Live, the paid virtual event product, attracted a lot of public attention in 2016 and 2017, but since then its popularity has waned. According to the prospectus, Zhihu currently has 2.4 million paying members, or only 3.4% of its monthly active users.

Zhihu also faces intense competition. Defined narrowly, it has no rivals, with would-be contenders like Baidu Zhidao and Wukong, owned by ByteDance, falling by the wayside. But Zhihu has positioned itself as something more: a community for diverse content. In this regard, it's competing with big public-facing social media platforms such as the Twitter-like Weibo and Bilibili. While Zhihu's 68.5 million monthly active user base is growing fast, Weibo has over 500 million and Bilibili over 200 million. Zhihu differentiates itself with the quality and depth of its content, but maintaining that creates inevitable tension with the business imperative to expand.

Like every content platform in China, Zhihu is subject to rigid state censorship and faces harsh penalties for failing to police speech itself. Politically-sensitive questions are nowhere to be found on the platform, while other topics including transgender rights have been censored in the past. Even so, in March 2018, Zhihu was taken off every mobile app store for seven days at the request of Beijing's municipal Cyberspace Administration. Authorities did not specify why, but the suspension probably related to subtle criticisms of Xi Jinping on the platform; Zhihu promised to "make adjustments."

Zhihu's prospectus is largely mum on the censorship question, perhaps because the company feels it's gotten good enough at doing it. Zhihu says it has a "comprehensive community governance system" that combines "AI-powered content assessment algorithms" with the ability of users to report each other as well as "proprietary know-how." These resemble the same tools most big Chinese social media platforms use to censor content and keep in Beijing's good graces.

Who gets rich?

Here's what we know:

  • Founder, CEO and Chairman Yuan Zhou currently owns 8.2% of Zhihu, with another 8% worth of options, which he can exercise within 60 days of the IPO, held in a separate holding company controlled by a trust of which he is the beneficiary. Following exercise, Zhou will have the vast majority of aggregate voting power.
  • Innovation Works, beneficially owned by Peter Liu and Kai-Fu Lee, owns 13.1% of Zhihu. According to corporate database Qichacha, Innovation Works invested about $153,000 in an angel round in January 2011, then made follow-on investments in the C and D rounds.
  • Tencent owns 12.3%.
  • Qiming Entities owns 11.3%. According to corporate database Qichacha, Qiming invested $1 million in Zhihu's series A, then made follow-on investments in the B, C and D rounds.

Kuaishou, Baidu and Sogou also own stakes, as does SAIF IV Mobile Apps Limited.

Innovation Works' Kai-Fu Lee and Peter Liu, and Qiming Ventures, both of which invested early and often, look like the biggest winners besides founder Zhou.

What people are saying

"Zhihu, if it ever wants to be a truly massive platform, will need to go out of the hardcore knowledge-sharing space, and become more mainstream, more entertaining, and yes, even less intellectual. But to capture that market, who better to partner with than Kuaishou, who built its business on exactly those characteristics?" —Ying-Ying Lu, co-host of Tech Buzz China.

"After separating video content into its own feed, Zhihu is now in competition with Bilibili and [ByteDance-owned] Xigua Video. Education-themed videos used to be one of the important growth drivers for the latter two apps. Now [Zhihu], the app that specialized in educational content, has joined the game." —Lan Xi (pen name), independent tech writer.

David Wertime

David Wertime is Protocol's executive director. David is a widely cited China expert with twenty years' experience who has served as a Peace Corps Volunteer in China, founded and sold a media company, and worked in senior positions within multiple newsrooms. He also hosts POLITICO's China Watcher newsletter. After four years working on international deals for top law firms in New York and Hong Kong, David co-founded Tea Leaf Nation, a website that tracked Chinese social media, later selling it to the Washington Post Company. David then served as Senior Editor for China at Foreign Policy magazine, where he launched the first Chinese-language articles in the publication's history. Thereafter, he was Entrepreneur in Residence at the Lenfest Institute for Journalism, which owns the Philadelphia Inquirer. In 2019, David joined Protocol's parent company and in 2020, launched POLITICO's widely-read China Watcher. David is a Senior Fellow at the Foreign Policy Research Institute, a Research Associate at the University of Pennsylvania's Center for the Study of Contemporary China, a Member of the National Committee on U.S.-China Relations, and a Truman National Security fellow. He lives in San Francisco with his wife Diane and his puppy, Luna.

Sponsored Content

The future of computing at the edge: an interview with Intel’s Tom Lantzsch

An interview with Tom Lantzsch, SVP and GM, Internet of Things Group at Intel

An interview with Tom Lantzsch

Senior Vice President and General Manager of the Internet of Things Group (IoT) at Intel Corporation

Edge computing had been on the rise in the last 18 months – and accelerated amid the need for new applications to solve challenges created by the Covid-19 pandemic. Tom Lantzsch, Senior Vice President and General Manager of the Internet of Things Group (IoT) at Intel Corp., thinks there are more innovations to come – and wants technology leaders to think equally about data and the algorithms as critical differentiators.

In his role at Intel, Lantzsch leads the worldwide group of solutions architects across IoT market segments, including retail, banking, hospitality, education, industrial, transportation, smart cities and healthcare. And he's seen first-hand how artificial intelligence run at the edge can have a big impact on customers' success.

Protocol sat down with Lantzsch to talk about the challenges faced by companies seeking to move from the cloud to the edge; some of the surprising ways that Intel has found to help customers and the next big breakthrough in this space.

What are the biggest trends you are seeing with edge computing and IoT?

A few years ago, there was a notion that the edge was going to be a simplistic model, where we were going to have everything connected up into the cloud and all the compute was going to happen in the cloud. At Intel, we had a bit of a contrarian view. We thought much of the interesting compute was going to happen closer to where data was created. And we believed, at that time, that camera technology was going to be the driving force – that just the sheer amount of content that was created would be overwhelming to ship to the cloud – so we'd have to do compute at the edge. A few years later – that hypothesis is in action and we're seeing edge compute happen in a big way.

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Saul Hudson
Saul Hudson has a deep knowledge of creating brand voice identity, especially in understanding and targeting messages in cutting-edge technologies. He enjoys commissioning, editing, writing, and business development, in helping companies to build passionate audiences and accelerate their growth. Hudson has reported from more than 30 countries, from war zones to boardrooms to presidential palaces. He has led multinational, multi-lingual teams and managed operations for hundreds of journalists. Hudson is a Managing Partner at Angle42, a strategic communications consultancy.
Protocol | Policy

Far-right misinformation: Facebook's most engaging news

A new study shows that before and after the election, far-right misinformation pages drew more engagement than all other partisan news.

A new study finds that far right misinformation pulls in more engagement on Facebook than other types of partisan news.

Photo: Brett Jordan/Unsplash

In the months before and after the 2020 election, far-right pages that are known to spread misinformation consistently garnered more engagement on Facebook than any other partisan news, according to a New York University study published Wednesday.

The study looked at Facebook engagement for news sources across the political spectrum between Aug. 10, 2020 and Jan. 11, 2021, and found that on average, far-right pages that regularly trade in misinformation raked in 65% more engagement per follower than other far-right pages that aren't known for spreading misinformation.

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Issie Lapowsky
Issie Lapowsky (@issielapowsky) is a senior reporter at Protocol, covering the intersection of technology, politics, and national affairs. Previously, she was a senior writer at Wired, where she covered the 2016 election and the Facebook beat in its aftermath. Prior to that, Issie worked as a staff writer for Inc. magazine, writing about small business and entrepreneurship. She has also worked as an on-air contributor for CBS News and taught a graduate-level course at New York University’s Center for Publishing on how tech giants have affected publishing. Email Issie.
Transforming 2021

Blockchain, QR codes and your phone: the race to build vaccine passports

Digital verification systems could give people the freedom to work and travel. Here's how they could actually happen.

One day, you might not need to carry that physical passport around, either.

Photo: CommonPass

There will come a time, hopefully in the near future, when you'll feel comfortable getting on a plane again. You might even stop at the lounge at the airport, head to the regional office when you land and maybe even see a concert that evening. This seemingly distant reality will depend upon vaccine rollouts continuing on schedule, an open-sourced digital verification system and, amazingly, the blockchain.

Several countries around the world have begun to prepare for what comes after vaccinations. Swaths of the population will be vaccinated before others, but that hasn't stopped industries decimated by the pandemic from pioneering ways to get some people back to work and play. One of the most promising efforts is the idea of a "vaccine passport," which would allow individuals to show proof that they've been vaccinated against COVID-19 in a way that could be verified by businesses to allow them to travel, work or relax in public without a great fear of spreading the virus.

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Mike Murphy

Mike Murphy ( @mcwm) is the director of special projects at Protocol, focusing on the industries being rapidly upended by technology and the companies disrupting incumbents. Previously, Mike was the technology editor at Quartz, where he frequently wrote on robotics, artificial intelligence, and consumer electronics.

People

WhatsApp thinks business chat is the future — but it won't be easy

From privacy policy screw-ups to UI questions, can WhatsApp crack the super-app riddle?

WhatsApp Business is trying to wrap shopping around messaging. It's not always easy.

Image: WhatsApp

At some point, WhatsApp was always going to have to make some money. Facebook paid $21.8 billion for the company in 2014, and since then, WhatsApp has grown to more than 2 billion users in more than 180 countries. And while, yes, Facebook's acquisition was in part simply a way to neutralize a competitor, it also knows how to monetize an audience.

The trick, though, would be figuring out how to do that without putting ads into the app. Nobody at WhatsApp ever wanted to do that, including co-founders Jan Koum and Brian Acton, who reportedly left Facebook after disagreements over ads. More recently, even Mark Zuckerberg has slowed the WhatsApp ad train, with The Information reporting that ads in WhatsApp likely won't come while the company's under so much regulatory scrutiny. So: $21.8 billion, no ads. What to do?

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David Pierce

David Pierce ( @pierce) is Protocol's editor at large. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

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