Meta recently hosted a roundtable discussion focused on its evolving, AI-driven ad tools and the impact of machine learning on advertising results. The session featured Meta’s ad executives and included an interview with Cody Plofker, the CMO of Jones Road Beauty, who shared valuable insights into the development of Meta’s ad tools and emerging trends.
Key Takeaways:
- Strong adoption and promising results: Meta’s AI content generation features, including text variation and image expansion, have been widely embraced by advertisers and have demonstrated improved performance for brand partners.
- Growing popularity of click to message ads: More brands are recognizing the value of messaging as a key connective tool, aligning with the broader trend of increased engagement.
- AI-driven content recommendations: AI recommendations now account for 40% of the content seen on Instagram. Meta’s AI recommendations have contributed to a 7% increase in time spent on Facebook and a 6% increase on Instagram over the past year.
- Video content dominance: Daily watch time for all video types has grown by over 25% year-over-year in Q4 2023. Additionally, Reels are being reshared an impressive 3.5 billion times every day.
- Leveraging AI targeting tools: Meta encourages brands to embrace its AI targeting tools, such as Advantage campaigns, which have proven to deliver better results compared to interest-based targeting. Although initially met with hesitation, brands have found that relinquishing control over specific audiences allows them to focus more on creative aspects, resulting in overall improved outcomes.
- Creative as a crucial factor: Meta emphasizes that creative plays a pivotal role in the ad process, influencing more than half of its ad auctions’ decisions.
AI’s Significance for Meta:
Meta has placed a strong emphasis on AI, both internally and externally, as it seeks to enhance performance and user experiences through new systems and technologies.
The Impact of Meta’s Advantage Automated Campaigns:
Meta’s Advantage automated campaigns have significantly contributed to improved campaign outcomes for brand partners, aiding the recovery of Meta’s ad business after the effects of Apple’s iOS 14 update. Despite concerns and opt-outs prompted by privacy issues, in 2023, Meta’s ad business rebounded with a 25% revenue increase and a 28% rise in ad impressions, while the average price per ad decreased by 9%.
Considerations for Advertisers:
With AI driving Meta’s recovery and success, it may be worth exploring Meta’s automated processes for ad creation and delivery. Despite potential risks, experimenting with these AI-powered approaches could yield positive results for your advertising strategy.
