Meta's AI-Powered Ads: A Game Changer for Businesses
Meta Pioneers New Advertising Era with AI-Generated Custom Ads for Diverse Audiences
Wednesday April 05, 2023,
3 min Read
Meta, Facebook's parent company, has recently announced its intentions to commercialize its generative artificial intelligence (AI) technology to enhance the effectiveness of advertisements. The move comes as the tech giant is looking for practical applications for its AI technology, amidst recent mass layoffs amounting to 10,000 jobs in a bid to increase profitability and adopt a leaner structure.
Meta's chief technology officer, Andrew Bosworth, claimed in a recent interview that the company is at the forefront of generative AI research and development. Having started researching AI in 2013, Meta has since published numerous studies in the field and ranks among the industry's leaders, including Google. Bosworth explained, “We’ve been investing in artificial intelligence for over a decade and have one of the leading research institutes in the world.”
With teams at Meta pioneering techniques related to large language model (LLM) development, Bosworth expressed confidence in the company's position at the cutting edge of AI. He stated that the generative AI team created a couple of months ago, is actively working on commercializing the technology, with support from CEO Mark Zuckerberg and Chief Product Officer Chris Cox.
Meta plans to use its AI technology to improve ad effectiveness by guiding advertisers on creating better ads for different target audiences, a move that could save both time and money. Advertising is a crucial revenue source for Meta, with over $113 billion in ad revenues in 2022, compared to its cumulative revenue of $116 billion.
This strategic shift comes after Meta lost billions on its metaverse division, Reality Labs, last year. The company's virtual world bet cost $9.4 billion in 2022 and could reach a staggering $100 billion in 2023. Additionally, Meta's flagship metaverse platform, Horizon Worlds, has underperformed and faced user complaints about the virtual world's quality. Consequently, Meta has decided to pivot away from its metaverse ambitions, with Zuckerberg stating that the company has a "new top-level product group at Meta focused on generative AI."
In the short term, Meta will concentrate on developing creative and expressive tools, while its long-term focus will be on creating AI personas that can assist users in various ways. This decision comes as user interest in metaverse platforms has seen a sharp decline in recent months, with platforms like Decentraland experiencing a significant drop in sales.
As Meta continues to pursue the commercialization of its AI technology, it is clear that the company is adapting its strategy to prioritize areas with higher growth potential and profitability, while seeking to improve its existing products and services like Facebook and Instagram.