“Adding AR camera effects to mobile ads can significantly improve campaign performance,” said Nicola Mendelsohn, Meta’s VP of global business group. AR makes it possible to virtually try-on products and play digital effects, Mendelsohn explained.
Meta has been refining its ad sales tactics over the past year, especially as it de-emphasized the metaverse while it focuses on the core business, running ads on Facebook, Instagram and WhatsApp. Meta also has been more vocal about how AI is used in the ad platform, but it did not have any generative AI ad updates to share.
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Meta, Google, Amazon, TikTok and Snap have all taken steps to launch AI features after Microsoft started dominating the AI conversation. Microsoft has been incorporating ChatGPT into all its products, including the new Bing Chat. Meta and Google have been developing AI for years, but they have been mostly quiet about consumer applications until now. AI is very much a part of how ad and content algorithms work on Meta and Google. AI is key to running “smart” ad campaigns—with better targeting and measurement.
Meta has an AI shopping ad program baked into its platform, which it upgraded last year. Meta’s machines handle most of the legwork of analyzing the ad creative, targeting the audiences, and measuring conversions—when the ads work. Advertisers saw more than 20% more conversions in the fourth quarter of 2022, compared to the year before, Mendelsohn told the audience.
Maintaining conversions has been an important metric for Meta, especially after Apple cut down on sharing data with apps on devices, and as cookies started going away from web browsers. Apps that live on advertising, including Facebook and Instagram, had to rebuild their ad platforms to keep showing results to marketers, and AI is a part of that work.