Meta Founder Mark Zuckerberg swears by generative AI and its impact on how brands advertise on Facebook and Instagram.
And it seems generative AI is working for Meta’s ad unit. For Q2, Meta reported total revenue of $39.07 billion, and 98% of it ($38.3 billion) came from selling ads.
One of the products advertisers are spending money on is Meta’s AI-powered Advantage+ umbrella of tools. “Advertiser adoption of these tools continues to expand, and we’re adding new capabilities to make them even more useful,” Meta CFO Susan Li said on the Q2 earnings call.
This holiday season, Meta is once again making a pitch for its AI tools, citing use cases and ways brands can make ads faster and reach the right target audience.
For instance, Meta has launched promo codes in ads—including offers for first time buyers—so brands can highlight discounts to enable faster checkout. Meta has also tweaked its reminder ads to include seasonal sales.
This fall, Meta will also begin testing the ability for advertisers to show ads to users most likely to shop in-store and highlight nearby locations to them. All these features can be clubbed with Meta’s AI enabled Advantage+ shopping campaigns. The idea is to give advertisers more options for ad formats in their campaigns, Meta said, so they can implement a creative diversification strategy on the ad manager.
On the earnings call, Li noted that generative AI will “make it easier for advertisers to develop customized and diverse ad creative.” This creative diversification seems to be the secret sauce that enables advertisers to get better results on Meta’s ads manager.
Retail Brew sat down with Meta’s head of industry, Karin Tracy, who oversees retail, fashion, and luxury practices across Facebook, Instagram, and Messenger, to learn more about creative diversification and Meta’s ad strategy going into the holidays.
Keep reading here.—VC
|