Meta, the owner of Facebook and Instagram, plans to invest heavily in AI next year, despite a 6% decrease in the average price per ad. The company has been using AI-powered marketing planning and ad measurement features to drive growth. Snap has also seen an increase in average revenue per user in the third quarter due to its revamped ad-targeting tools. Analysts suggest that the ad market rebound is led by spending from retail companies, with Google and Meta as the biggest potential beneficiaries.
Key takeaways:
- Google, Meta, and Snap have all surpassed quarterly revenue expectations, with positive metrics for their advertising businesses, indicating a rebound in the sector.
- Artificial Intelligence (AI) is playing a significant role in this growth, with tools like Google's Performance Max using AI to optimize marketing budget distribution across its ad network.
- Meta plans to invest heavily in AI next year, with tools that use generative AI to create different variations of ad campaigns, despite a decrease in the average price per ad.
- Despite geopolitical uncertainties, such as the conflict in the Middle East, these companies are seen as resilient due to their wide reach, attracting a steady stream of advertisers.