Good News: Meta To Unleash Automated AI Ads
August 19, 2024
Facebook generated its first revenue streams from advertising. Meta, Facebook’s parent company, continues to make huge profits from ads. Its products use cookies for targeted ads, collect user information to sell, and more. It’s not surprising that AI will soon be entering the picture says Computer Weekly: “Meta’s Zuckerberg Looks Ahead To AI-Generated Adverts.”
Meta increased its second-quarter revenues 22% from its first quarter. The company also reported that the cost of revenue increased by 23% due to higher infrastructure costs and Reality Labs needing a lot of cash. Zuckerberg explained that advertisers used to reach out to his company about the target audiences they wanted to reach. Meta eventually became so advanced that its ad systems predicted target audiences better than the advertisers. Zuckerberg plans for Meta to do the majority of work for advertising agencies. All they will need to provide Meta will be a budget and business objective.
Meta is investing and developing technology to make more money via AI. Meta is playing the long game:
“When asked about the payback time for investments in AI, Meta’s chief financial officer, Susan Li, said: ‘On our core AI work, we continue to take a very return on investment-based approach. We’re still seeing strong returns as improvements to both engagement and ad performance have translated into revenue gains, and it makes sense for us to continue investing here.’
Looking at generative AI (GenAI), she added: “We don’t expect our GenAI products to be a meaningful driver of revenue in 2024, but we do expect that they’re going to open up new revenue opportunities over time that will enable us to generate a solid return off of our investment…’”
Meta might see a slight dip in profit margins because it is investing in better technology, but AI generated ads will pay for themselves, literally.
Whitney Grace, August 19, 2024
Comments
-
- Subscribe to Beyond Search
Feature archive
News archive
-
