NEW YORK (TheStreet) -- Facebook (FB) - Get Report has been inaccurately reporting advertisement information on its video ads for the past two years, according to the Wall Street Journal.

The social media giant miscalculated average ad view time, and did not count people who would watch for less than three seconds. A number of ad buyers have consequently become upset.

The Aspen Institute CEO Walter Isaacson joined Friday morning's "Squawk Alley" on CNBC to discuss the controversy.

The Aspen Institute is a non-profit organization focused on fostering ethical values in leadership. 

"I think it reinforces ad agencies that say you need to give us independent ways to verify what is happening. One of the things Facebook has is very tight control. I think that frustrates people who advertise on it because they want more information about who's watching," Isaacson explained.

He believes that the media being entirely dependent on advertising support, especially through video, is not sustainable.

This issue, however, does not only impact Facebook. Some people have argued that by misreporting advertising figures, Facebook falsely gives itself an advantage over other sites. 

"Companies that were competing, like Twitter (TWTR) and others, will benefit from this and so will the broadcast networks. Once again, I think the way to fix it is you have to open up your data more and have independent measurements and verifications. Also, to not have the entire world depend on video advertising," Isaacson said.

Shares of Facebook were lower during early afternoon trading on Friday. 

(Facebookis held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trialhere.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of A-.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: FB

Image placeholder title