Meta aims to fully automate advertising with AI by 2026: Report
Meta Platforms aims to allow brands to fully create and target advertisements with its artificial intelligence tools by the end of next year, the Wall Street Journal reported on Monday, citing people familiar with the matter.
The social media company's apps have 3.43 billion unique active users globally and its AI-driven tools help create personalized ad variations, image backgrounds and automated adjustments to video ads, making it lucrative for advertisers.
A brand could provide a product image and a budget, and Meta's AI would generate the ad, including image, video and text, and then determine user targeting on Instagram and Facebook with budget suggestions, the report said.
Meta also plans to let advertisers personalize ads using AI, so that users see different versions of the same ad in real time, based on factors such as geolocation, according to the report.
The owner of Facebook and Instagram, whose majority of revenue comes from ad sales, referred to CEO Mark Zuckerberg's public remarks about AI-driven ads, when contacted by Reuters.
Zuckerberg last week stressed that advertisers needed AI products that delivered 'measurable results at scale' in the not-so-distant future. He added that the company aimed to build an AI one-stop shop where businesses can set goals, allocate budgets and let the platform handle the logistics.
Social media firms such as Snap, Pinterest and Reddit are increasingly investing in AI and machine learning tools to attract advertisers in an intensely competitive ad market.
Meta's shares were up nearly 1% in morning trading, while stocks of ad giant Interpublic Group and Omnicom Group fell 1.9% and 3.2%, respectively.
Shares of France's Publicis Groupe SA slid 3.8%. U.S.-listed shares of WPP, the owner of agencies GroupM, Ogilvy and VM, were down 2.2%.
Technology firms such as Google and OpenAI have also launched video and image-generation AI tools, but their widespread adoption in advertising remains in doubt as marketers weigh concerns over brand safety, creative control and quality.
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