NEW YORK (TheStreet) -- Shares of Facebook (FB) were lower in late afternoon trading on Wednesday, after the social media platform announced that it had overstated four metrics to brands, although none of them affected the company's billing.
While Facebook needs to work on transparency with its metrics going forward, it's still very valuable to brands, Event Solutions Chief Marketing Officer Michael Jackson said on CNBC's "Power Lunch" on Wednesday afternoon.
"Facebook is a very effective medium for advertisers, specifically those brands like AmEX (AXP), Coca Cola (KO), Walmart (WMT) that are really trying to make the shift from being kind of a mass market broadcast television advertiser to a social engagement brand," he said. "So the brands are convinced that it works, but transparency and clarity as it relates to viewership is an absolute imperative for Facebook going forward."
Facebook has worked closely with brands like AmEx over the past five to seven years so they have a "dialogue going on" that should keep the brands tied to it going forward, Jackson said. "They're happy with the results but again when you look at pricing in this whole digital space, the lack of clarity and integrity around what I'm paying for versus the results that I'm achieving, it's a grey area. It's fuzzy."
Both Alphabet's (GOOGL) Google and Facebook need to "step up" and be leaders of transparency in the digital advertising space, he said.
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