Meta, the parent company of Facebook and Instagram, has highlighted the importance of AI in its advertising business during its second-ever Business Update event. The company’s Head of Global Business Group, Nicola Mendelsohn, emphasized that AI has been at the core of the company’s operations since the early days of Feed in 2006.
Meta plans to focus on two waves of technology, AI and the metaverse, and sees the potential to build on each other. The company’s ad unit generated $28.1 billion in Q1 of 2023, surpassing Wall Street’s expectations.
AI Sandbox: The Future of Advertising
Meta announced the launch of AI Sandbox, an advertising tool focusing on generative AI and its application in advertising. This product will allow advertisers to create different versions of the same text and background and repurpose images for different formats using “image outcropping.” Meta’s Head of Monetization, John Hegeman, said that integrating these features into Meta’s products will allow advertisers to personalize their messages and appeal to different parts of their audience effectively.
The Connection between Metaverse, AI, and Ads
Meta believes AI will play a crucial role in developing the metaverse and creating user value. Although the connection between AI, ads, and the metaverse is still unclear, the company plans to utilize generative AI and machine learning to develop the metaverse further. The ultimate goal is to create a seamless experience for businesses and their audience.
Jones Road Beauty’s Success with Meta’s Advertising Products
Cody Plofker, CMO of Jones Road Beauty, spoke about the beauty company’s success with Meta’s advertising products, such as Advantage+. Plofker said that the bulk of the company’s ad spend goes to Meta-owned platforms like Facebook and Instagram. Meta’s products have enabled the company to connect with the right audience and drive better outcomes.
So, Meta’s focus on AI and its advertising products is driven by the desire to help businesses grow. The company plans to use AI to personalize messages and effectively appeal to different parts of the audience.
Meta also sees the potential to use AI to develop the metaverse and create value for its users. The launch of AI Sandbox is a step towards achieving this goal.