Our investments in AI continue to help drive business performance. As a follow-up to a previous study conducted with the University of Berkeley in 2022, earlier this year we analyzed more than one million advertising campaigns from advertisers in the US and found that for every dollar an advertiser spends with Meta, Our ads generate, on average, $3.71 in revenue for your business. This represents a 12% increase in return on ad spend (ROAS) from 2022, and means advertisers in the US earn approximately $180 billion in annual revenue from Meta ads.
Additionally, the same study found that when companies use our AI-powered Advantage products, they see even higher ROAS. Specifically, ad campaigns set up to use Advantage+ Shopping Campaigns generated an average of $4.52 in revenue for their business for every dollar spent on our ads. When advertisers who had not previously used Advantage+ Shopping Campaigns activated the product’s AI-powered targeting features, on average, they experienced a 22% increase in ROAS from our ads.
Boosting Performance with Generative AI-Powered Solutions
AI tools are helping businesses better support their customers and discover new products they might be interested in through our messaging platforms. We’re training AI, built with Meta Llama 3, on the most popular questions businesses receive on Messenger to understand and respond to customer messages about products in an engaging and natural way.
Companies are already achieving results using this new testing feature. For example, when White Coat Manila, a medical apparel company in the Philippines, used AI in Messenger, they managed to save at least 20% on customer support costs and focus more on growing their business by using AI.
«AI for business messages is a true paradigm shift. Handles hundreds of basic queries from our clients quickly and accurately. “This automation saves at least 20% on customer support costs and significantly helps us focus more on growing our business.” – Franco B. Ongkingco, White Coat Manila
Selected companies can start by sharing information about themselves and their Meta product catalog in Meta Business Suite. These chats can be initiated through a click-to-message ad, organically, or through the “Send Message” button on a business’s Facebook page.
Customers always have the option to request to message with a human agent, and businesses can also manually intervene in the conversation at any time.
We’ve also recently begun rolling out enhanced generative AI features for advertising creative, such as full image and text generation, and introduced additional tools and services to help businesses like yours grow. And advertisers are already seeing performance improvements thanks to these new features.
For example, Unilever’s Living Proof brand used Meta’s new generation of generative AI images and text and saw a 15% improvement in Cost Per Purchase (CPP), an 18% increase in Total Purchase Volume, and a 13% increase in Click-Through Rate (CTR).
When Press Healthfoods began using our new generative AI text and image generation features to drive greater creative diversity, they were able to reduce Cost Per Action (CPA) by 33%.
Reaching the Right Customers with Marketing Messages
Second, we’ve heard from businesses that sending updates on Messenger and WhatsApp can be a great way to engage your customers with things like back-in-stock product alerts, holiday discounts, and more.
Therefore, we share that some advertisers – for the first time – will soon be able to create, organize and send paid marketing messages in Messenger, using Ads Manager, to people who have chosen to receive news from them.
This follows an update from our recent Conversations event, where we announced that businesses using Ads Manager to send marketing messages on WhatsApp will have the option to provide Meta with their subscriber list and our AI systems will recommend the appropriate subset of recipients based on on the results that matter most to them, like helping turn a lead into a conversion or raising awareness about a new product. We hope to bring these capabilities to Messenger in the future as well.
Scaling Threads for Companies and Creators
Threads is a growing space for people and businesses to connect. In fact, there are now over 150 million monthly active users on Threads*.
We’re launching the Threads API to help businesses and creators manage their Threads presence at scale, making it easy to share new, engaging content with their communities from their favorite third-party apps.
Some of the features include:
- The ability to authenticate, publish and retrieve your own content via the API.
- Management capabilities so businesses and creators can retrieve and interact with responses to their posts, set reply controls, and hide or show specific responses.
- Media and account-level information, such as number of views, likes, and replies.
We also recently introduced a new web experience that businesses and creators can customize to easily find inspiring content and share it throughout the day. They can set columns for their favorite searches or accounts, saved posts, notifications, and more; and have them updated in real time.
Find out more about our Cannes presence here.
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*Meta first quarter 2024 results
