Meta is rolling out new AI tools for advertisers by the end of next year. This move is set to shake up the traditional marketing landscape, allowing brands to create and target campaigns directly on Facebook and Instagram.
Currently developing the tools, Meta aims to streamline ad creation, letting businesses generate full ads using just a product image and their marketing budget.
The shift is serious. Existing advertising agencies may find themselves cut out of the loop. This new capability comes as part of Meta‘s strategy to tap into small advertisers who can’t afford traditional marketing services.
The tools will handle everything: imagery, video, and text, while offering targeted advertising based on variables like geolocation. For example, a holiday company can tailor its deals to users based on their likely destinations.
Investors reacted swiftly. Shares in major marketing firms took a hit. WPP’s stock fell 3%, while Publicis Groupe and Havas dropped 3.9% and 3%, respectively.
Zuckerberg is clear about his vision. He’s dubbed the upcoming features as “a redefinition of the category of advertising.”
In April, Meta increased its capital expenditure forecast for next year to between $64 billion and $72 billion, focusing partly on enhancing its AI infrastructure.
Meta’s aggressive push for AI could further boost its annual advertising revenue, currently sitting at an eye-watering $160 billion.