Meta Platforms Inc. META is set to revolutionize the advertising industry by introducing a fully automated ad creation system powered by artificial intelligence.
What Happened: Meta Platforms is planning to roll out a system that will enable brands to design and target ads using AI by the end of 2026. This new AI-powered advertising system is part of Meta’s CEO Mark Zuckerberg‘s vision for the company’s future, according to The Wall Street Journal.
Meta's current ad platform already uses AI to generate ad variations and make minor tweaks before targeting users on Facebook and Instagram.
With the new advertising tools, brands can input a product image and set a budget goal, and AI will generate the complete ad—covering visuals, video, and copy. It will also determine the ideal Instagram and Facebook audience to target and provide budget recommendations. Meta also intends to let advertisers use AI to tailor ads in real time, showing users different versions of the same ad based on factors like their location.
However, several major brands have raised concerns about Meta gaining greater control over their advertising strategies and the effectiveness of AI-generated campaigns.
Why It Matters: Meta’s move to fully automate ad creation using AI is a significant development in the advertising industry. The company’s advertising business is already thriving, with ad impressions increasing by 5% and the average price per ad rising by 10% year-over-year, as reported in its first-quarter results.
Last week, Meta announced its plans to roll out its "Early Release" program that would offer a select group of advertisers early access to test its generative AI creative tools ahead of a wider launch. Meta is already seeing encouraging results from its existing AI-powered ad targeting tools.
However, the levy of President Donald Trump‘s tariffs is likely to impact the digital advertising strategies of tech giants such as Meta Platforms as well as the ad spending plans of other businesses.
The introduction of this AI-powered ad creation system could potentially help Meta Platforms and other affected companies to adapt their advertising strategies in the face of such challenges.
Over the past 12 months, the shares of Meta surged 35.60%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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