Meta expands AI ad features to optimize performance

The news: Meta is adding a bulk of AI-powered ad features for Facebook and Instagram to help advertisers effectively optimize campaign performance, per a company announcement.

• Meta will “continue to invest in AI models like Andromeda that analyze tens of millions of ads and find the right message for the right person at the right time,” while also “introducing new tools and placements that can be used with the AI-powered Advantage+ sales campaigns to maximize performance,” the company said.
• The updates will allow advertisers to use Advantage+ catalog ads alongside Partnership ads for influencer collaborations.
• The company is also investing in a Google-style AI model display that will show shoppers how different clothing items look on different sized virtual models to encourage purchases and help advertisers create more engaging experiences.
• Meta is exploring new genAI use cases like background and text generation for catalog ads.

Zooming out: The updates are part of Meta’s ongoing effort to revolutionize advertising on its platforms using AI ad tools in the hopes of attracting more advertisers.

• The company phased out some manual controls from Advantage+ catalog ads in February, opting for automated AI-powered targeting to provide better results than manually selected audience segments.
• Meta introduced numerous tools in October to highlight its AI capabilities, including introducing Video Expansion to create a more immersive experience and Image Animation to allow advertisers to turn static images into video content for Reels.

The ongoing updates aren’t without reason—a 2024 study found that AI-powered Meta ads delivered nearly 22% higher returns than average Meta ads.

Our take: AI tools will help Meta expand its already massive potential for advertisers to reach target audiences, drive engagement, and boost conversion rates.

• The company’s new features are likely to be valuable additions that help advertisers make ads more effective by providing more creative capabilities, ensuring efficient campaign optimization, and improving targeting precision—highlighting Meta’s ongoing value as an advertising medium.
• Meta platforms will account for 72% of overall social network ad spending in 2025, per our forecast.