Meta has long relied on ad revenue as its primary source of income, but in spite of the fact that this is the case these ad dollars have been drying up as of late. It turns out that Meta’s ad business has declined by as much as 4% since last year. That might be a bit better than what Wall Street predicted, but it still paints a picture of a company in turmoil.
With all of that having been said and now out of the way, it is important to note that Meta’s ad chief Marne Levine feels like AI is the answer to all of the company’s problems. In an interview with Business Insider, Levine said that AI could make it easier for creatives to make ads that will work with the algorithm, pointing to a 20% increase in conversions when AI was brought to the mix.
Levine also mentioned a new feature called Advantage+ which uses Meta’s proprietary AI to help advertisers figure out what forms of marketing are proving to be more effective. This can help advertisers to adopt a more precise approach than might have been the case otherwise, and the results are already showing a 32% uptick in ROI among advertisers.
Another thing that Levine alluded to was Meta’s renewed emphasis on Reels. Short form content is reigning supreme right now, so it makes sense that Meta would want to double down on it with all things having been considered and taken into account. According to Meta, 40% of advertisers already post Reels, and they are going to try to improve monetization options due to that.
Finally, Meta will be attempting to bolster its burgeoning ecommerce push by incorporating clickthrough ads because of the fact that this is the sort of thing that could potentially end up bringing more customers into the sales funnel. The combination of all of these attempts could very well save Meta from its flagging fortunes, but only time will tell if these efforts will truly pay off or if Meta will sink due to its inherent ability to adapt to the new normal.
Read next: Meta is Still Working on Its Controversial Dual Camera Smartwatch
With all of that having been said and now out of the way, it is important to note that Meta’s ad chief Marne Levine feels like AI is the answer to all of the company’s problems. In an interview with Business Insider, Levine said that AI could make it easier for creatives to make ads that will work with the algorithm, pointing to a 20% increase in conversions when AI was brought to the mix.
Levine also mentioned a new feature called Advantage+ which uses Meta’s proprietary AI to help advertisers figure out what forms of marketing are proving to be more effective. This can help advertisers to adopt a more precise approach than might have been the case otherwise, and the results are already showing a 32% uptick in ROI among advertisers.
Another thing that Levine alluded to was Meta’s renewed emphasis on Reels. Short form content is reigning supreme right now, so it makes sense that Meta would want to double down on it with all things having been considered and taken into account. According to Meta, 40% of advertisers already post Reels, and they are going to try to improve monetization options due to that.
Finally, Meta will be attempting to bolster its burgeoning ecommerce push by incorporating clickthrough ads because of the fact that this is the sort of thing that could potentially end up bringing more customers into the sales funnel. The combination of all of these attempts could very well save Meta from its flagging fortunes, but only time will tell if these efforts will truly pay off or if Meta will sink due to its inherent ability to adapt to the new normal.
Read next: Meta is Still Working on Its Controversial Dual Camera Smartwatch
