How American Eagle is using Meta AI ads to get Gen Z to stores

Meta is adding AI-driven upgrades to its ad platform, positioning it as a way to help retailers navigate an uncertain economic climate. Among the brands tapping into these improvements is American Eagle Outfitters, which has been testing Meta’s AI-powered shopping ads in early beta programs. Now, the Gen Z-focused retailer allocates about a third of its ad budget on Facebook and Instagram to these automated campaigns, according to Chief Marketing Officer Craig Brommers. On Friday, Meta announced enhancements to its AI-powered shopping ads, Advantage+, allowing retailers to set in-store sales goals. This update allows ads to direct customers to nearby stores while still providing the option to shop online. The new in-store sales goals are part of an “omnichannel” ad product Meta has been testing in beta and plans to roll out to all retailers by summer, according to Karin Tracy, Meta’s head of retail, fashion and luxury. For American Eagle, “it’s a massive unlock,” Brommers told Ad Age, referring to the way shopping campaigns can now point customers to stores. Since testing the ad option starting late last year, American Eagle has seen return on ad spend increase 48% among 18- to 24-year olds, Brommers said. “One thing I do know about Gen Z is the desire to have instant gratification, instant fulfillment,” Brommers said, “and sometimes, I know it sounds crazy, but waiting a couple days to get that new jean from our e-commerce platform just doesn’t do it for them.” Data-Driven Marketing Playbook Join us May 22 in NYC to explore how data powers marketing Learn more here Meta first launched Advantage+ ad campaigns in 2022. The campaigns use AI to automate tasks, such as managing ad bids in the auctions and deciding the best audiences and placements for ads. Meta has been making massive AI investments in its ad platform. Recently, Meta has shined a light on Andromeda, the latest generation of its AI model that decides what ads go where across Facebook, Instagram and other Meta properties. Meta is investing up to $65 billion into AI infrastructure this year. Getting advertisers to buy into AI ad campaigns has not always been easy, as the industry has been skeptical about some of the ways automation takes controls out of their hands. Also, generative AI, which helps create copy, imagery and video in the ads, makes some brands uneasy about giving up parts of the creative process. Meta’s rivals have also developed AI ad campaigns, including Google’s Performance Max and Amazon’s Performance+. Also read: Gen Alpha and teens are reviving in-store shopping ‘All in now’ Since the launch of Advantage+, Meta has run into some cautious advertisers as it promotes the adoption of the platform, Tracy said. “Everyone’s on their own journey, but I’m seeing incredible adoption across the board,” Tracy told Ad Age. American Eagle has come around to testing new AI features, Brommers said. The company was initially as careful as many brands have been about embracing AI, Brommers said, but AI can help shape the media strategy and offer subtle creative options. “You know, we had butterflies in our stomach when we started this journey with Advantage+, but we are all in now,” Brommers said. “More than a third of our media budget on Meta is Advantage+ planned, and I actually think that will just continue to go up because of the results we see. ... And I think this is a moment where retailers, yes, need to trust their gut to do the right thing, but we also need to lean into innovation.” On Thursday, Meta’s Tracy talked about a series of upgrades to AI ad campaigns with Ad Age, mostly focused on retailers. Tracy was discussing the latest tools ahead of Meta’s appearance at Shoptalk in Las Vegas next week. The “omnichannel” ads were one of the new features, rolling out fully this summer. Meta also is testing new online shopping tools within the ads. The upgraded AI algorithm will arrange the optimal set of products to show customers in the shopping ads. Also, customers could fill up an e-commerce cart from the ads, choosing from a catalog of options chosen by the AI. Then the customer is linked to the retailer’s website to complete the sale. Shopping mood Both Tracy and Brommers noted that there is a detectable downturn in consumer sentiment lately, and retailers are looking to increase efficiency with marketing budgets and lift sales. When American Eagle Outfitters delivered its fourth-quarter financial report earlier this month, CEO Jay Schottenstein noted that 2025 was off to a slow start and that the retailer was preparing to navigate an “uncertain consumer and operating landscape” ahead. “The state of retail, I know going into Shoptalk, this is going to be top of mind for everyone in terms of the uncertainty among consumers,” Tracy said. “Every incremental point of performance that we can offer through our ad tools is a critical point of leverage to maximize margins.” "Virtual try-ons" allow consumers to see what clothes look like on AI-generated models. Credit: Meta Advertisers will also get access to new generative AI features within Meta’s ad platform, including the ability to offer “virtual try-ons.” The try-ons use AI models—digital people generated by AI with different body types—to demonstrate how the products could look on consumers. More than 4 million advertisers have used generative AI tools within Meta, according to Tracy. “In terms of media planning, we’re all in [on AI] because, again, we’ve seen the results,” Brommers said. As for introducing more generative AI into the ad creation process, Brommers said he is interested in testing it. “I have to say I am now more open-minded about using technology where it enhances our brand position, and when I think about what our industry has to navigate in real-time,” Brommers said, “whether uncertain economics, different geographic needs and desires, I really think there’s more AI opportunities than I previously gave credit.” Data-Driven Marketing Playbook Join us May 22 in NYC to explore how data powers marketing Learn more here

How American Eagle is using Meta AI ads to get Gen Z to stores

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