WASHINGTON (dpa-AFX) - Meta, the parent company of Facebook and Instagram, is set to launch advanced AI tools by the end of next year that will allow advertisers to fully create and target ad campaigns directly on its platforms posing a significant threat to traditional marketing and media agencies.
The tools, first reported by The Wall Street Journal, will enable businesses to generate entire ads, including images, videos, and copy, simply by uploading a product image and budget. Meta's AI will then handle user targeting, including geolocation, to ensure the ad reaches the most relevant audience. This end-to-end automation could reduce brands' reliance on external ad agencies.
While Meta already offers some AI features to optimize existing ads, the new tools mark a major step toward streamlining the entire ad creation and delivery process.
The move is expected to attract millions of small and medium-sized businesses that lack the resources to hire agencies, while also giving larger brands a more cost-effective and efficient option for digital marketing.
The news sent shockwaves through the marketing sector. Shares of global ad giants fell sharply, with WPP down 3%, Publicis Groupe dropping 3.9%, and Havas sliding 3%. In contrast, Meta's stock rose nearly 1%.
Despite concerns, Meta insists it isn't trying to replace agencies. 'We believe AI will empower agencies and advertisers to focus on creativity,' said Alex Schultz, Meta's chief marketing officer. He emphasized that AI would make high-quality advertising more accessible to smaller businesses.
CEO Mark Zuckerberg has described the initiative as a 'redefinition of advertising,' reinforcing Meta's aggressive investment in AI, which could reach up to $72 billion in capital spending next year.
As digital competition intensifies, Meta's AI-powered ad platform is poised to reshape the future of marketing.
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