Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Meta’s “set it and forget it” AI ad tools are misfiring and blowing through cash

Apr 29, 2024 - theverge.com
Meta's automated ad platform, Advantage Plus, has been overspending on ad budgets and failing to deliver sales, causing frustration among marketers and small businesses. The cost per impressions (CPMs) were reported to be 10 times higher than normal, and Meta's lack of transparency and accountability over these issues has led to widespread uncertainty. Despite Meta insisting that the tool is functioning as it should, marketers have reported persistent problems and a lack of support from the company.

The issues with Advantage Plus have been attributed to increased inefficiencies in online advertising, which have been exacerbated by automation. This has led to a significant increase in the cost per click (CPC) and CPM, reducing profits for individual advertisers. Despite these issues, Meta's ad business reported a 27% increase in ad revenue in the first quarter, amounting to $35.64 billion.

Key takeaways:

  • Meta's automated ad platform, Advantage Plus, has been overspending on ad budgets and failing to deliver sales, causing significant issues for marketers and small businesses.
  • Meta's customer support has been lacking, with many inquiries being directed to AI chatbots, and there has been a noticeable decline in responsiveness since the transition.
  • Despite the ongoing issues, Meta insists that Advantage Plus is functioning as it should, causing frustration among users who are experiencing problems.
  • Meta's ad business reported a revenue of $35.64 billion for the first quarter, a 27 percent increase from the same period in 2023, despite the ongoing issues with Advantage Plus.
View Full Article

Comments (0)

Be the first to comment!