Metas generative AI tools find purchase with users and advertisers

The unprecedented success of OpenAI’s ChatGPT has made generative AI the tech trend du jour, with Google, Meta, and smaller players like Snap now racing to build competing applications. While Meta released an AI language model called LLaMA to researchers earlier this year, it has yet to debut anything resembling ChatGPT in a way that is widely accessible. All of the generative AI features are available in Meta’s Ads Manager through Advantage+ creative, Meta’s hub for optimizing user ad content. Meta’s new features could also make it easier for businesses to reach their target audiences, as a shoot can be tweaked to suit many different interests without having to go through extensive project planning to bring a new idea to life. According to Steiner, the AI models are trained “from a variety of sources,” including ad data from Meta’s platforms, data licensed from partners, vendors and third parties, and some publicly available data sources.

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That’s why Meta continues to plow tons of money and resources into developing better artificial intelligence systems. It expects capital expenditures to total between $30 billion and $33 billion this year, or about double its level of investment in 2020. “We want to put time back into people’s hands who are actually focusing on strategic relationships … As opposed to spending an inordinate amount of time transacting on our platform,” said Bowles. The AI boom also has buoyed other tech stocks like Nvidia (NVDA), which also has had its revenue lifted by the spike in demand for its components and software that are powerful enough to train and run AI technology.

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• Meta investors saw firsthand how reliance on any other company can suddenly produce a big negative impact on results after Apple rolled out App Tracking Transparency.
• Similarly, Meta is upgrading the text generation feature to include ad headlines in addition to the primary text.
• Striking the right balance with generative AI is important for Meta to build confidence in a technology the Instagram and WhatsApp owner believes is key to future growth but that has fallen into complex ethical and legal tangles.

The company has now passed a significant milestone toward that goal, with Meta AI passing the 500 million user mark, Zuckerberg revealed during the company’s latest earnings call. The new generative AI ad creation tools are available freein Meta’s Ads Manager Advantage+ package. Image Animation has already started rolling out, and Video Expansion is in testing. That explains the company’s decision to roll out a new, full-screen video tab, and so it follows that it’s also looking to help its advertising partners with new ad formats to take advantage of the new feature. In a world ruled by algorithms, SEJ brings timely, relevant information for SEOs, marketers, and entrepreneurs to optimize and grow their businesses — and careers.

Many of the features were first announced and released to small groups of customers in October 2023, with Meta saying at the time that it hoped to roll them out globally this year. Advertising revenue comprises nearly all of the tech giant’s revenue, meaning the company’s top line could get a boost if products like the ones announced Tuesday work and convince advertisers to spend more on Meta’s platforms. Meta Platforms’ (META) generative AI tools will be available all advertisers on its platforms to help them tailor their ads by customizing images and text to better target their audiences. Almost all (98%) of Meta’s revenue comes from advertising, and a better experience for advertisers could boost the company’s financials. Meta has revenue-sharing agreements with certain companies that host its open Llama collection of models.

For Meta, this is not the long-term plan since it’s still focused on metaverse creation. Bosworth points out that the company will rely on several language models or LLMs to successfully make a 3D-modeled dimension. Of course, this will be possible with the help of OpenAI’s GPT-4, the most advanced AI chatbot of the company at the moment.

And so it makes things like content creation much more accessible to more people,” he said. It’s probably the area that I’m spending the most time in, as well as Mark Zuckerberg and Chief Product Officer Chris Cox,” Bosworth told the publication. In an interview with Nikkei Asia, Meta’s CTO Andrew Bosworth, said the company expects to ship tools to create ads with AI that help a company make different images for different audiences. In the next year or so, Zuckerberg suggested that usage of Meta AI could also improve the quality of its ads, which implies that the company will analyze the way people use its assistant to better understand what they’re interested in buying.

While metaverse creation is on the company’s long-term plan, generating more ad revenue is probably the need of the hour. After Apple implemented its App Tracking Transparency feature in 2021, Meta was affected badly. Early last year, the social media company said that this change would cost them $10 billion in 2022. Meta’s profit for the quarter was $5.7 billion, a 24 percent decrease from the same time last year. In the upcoming months, it will be upgraded to include user text prompts that can customize what the model generates to better fit a user’s specific vision. Additionally, users can overlay text on those images, selecting from dozens of font typefaces to complete the ad, as seen below.

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If an advertiser uploads a photo of their product, Meta’s artificial intelligence tools can now generate new, different images of that product for marketing purposes. In the coming months, marketers will also be able to use text prompts to create different versions of the original image, the company said Tuesday. Following the rollout of Apple’s App Track Transparency on iOS, Meta shifted to rely more on AI to help target and measure ads.