The future of Meta’s advertising business is inextricably tied to AI, Facebook and Instagram parent company Meta said at its Business Update event on Thursday.
“AI is definitely in its moment,” Nicola Mendelsohn, head of global business group at Meta, said at the event. “That’s just the beauty of the ball, but it’s actually been on our table since the early days of Feedback in 2006… Mark Zuckerberg himself just said that recently, and he said we were very It focuses on two waves of technology, AI and the Metaverse, and how they can actually build upon each other when using AI to power advertising systems. I am focused.”
This was Meta’s second business update event, and the focus was on Meta’s advertising business, an attempt to draw a line between advertising, AI, and the Metaverse. In the first quarter of this year alone, Meta’s advertising division earned $28.1 billion, beating Wall Street’s expectations. Mendelsohn said the crux of the discussion is the company’s suite of products that automate parts of the advertising process.
“These products help companies easily connect the right creative to the right audience at the right time,” she told the audience.
“Let me give you an example,” continued Mendelsohn. “With Advantage+ Shopping, advertisers can save time by allowing advertisers to automatically test hundreds of different combinations by simply setting the interval instead of just sitting down and manually setting up different campaigns. You can pick the one that performs the best and ultimately give you better results.”
The main product announcement of the day is called AI Sandbox, which Meta plans to start rolling out gradually starting in July. The AI sandbox focuses specifically on generative AI and how it can be applied to ads, with many features such as the ability to create multiple versions of the same text and background, as well as “image exposure”. It is included. Allows advertisers to reuse images in various formats.
Meta’s Head of Monetization, John Hegeman, said: “We recognize that there are many tools that companies are already using and will continue to use, but what we see as a unique opportunity is the tight integration of these.” , advertisers will be able to perform many powerful functions, such as testing different types of backgrounds and text variations, allowing them to further personalize their messages and different parts of their audience. ”
Additionally, Meta featured an interview with Jones Road Beauty CMO Cody Profker, who discussed how the beauty company founded by Bobbi Brown is using Meta’s products for advertisers, such as Advantage+. Plovker, who is also Brown’s son, said the majority of the company’s advertising dollars are spent on Meta-owned platforms such as Facebook and Instagram.
The metaverse relationship between AI and advertising is still fuzzy, but it’s becoming clearer.
“We are no longer interested in the metaverse,” said Mendelsohn. “We are very interested in the Metaverse, but it is clear that the vision we are talking about will take five, ten years to come to fruition… In the future, if you are a company, Right now, it’s pretty clunky to do that, but in the future, with things like generative AI and machine learning, we’ll be able to say, “I want to do this.” ”
“AI can help us develop the metaverse more effectively,” added Hegeman. “Then the Metaverse will be another great opportunity to create value for people.”
“What I hear every day when I talk to CEOs and CMOs is that the most important thing for them is growth and how passionate we are about helping them grow today. I hope it will show us that there is,” Mendelsohn said at the event.
Ally Garfinkle Senior Tech Reporter at Yahoo Finance. follow her on her twitter @agarfinks and further LinkedIn.
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