On average, every employee of the company accounted for revenue that went beyond the $1M mark, a clear record for Facebook’s parent firm.
The news is major considering where Meta was coming from. Remember, it made a series of firings in the latter part of 2022 and the early part of last year. It’s easy to think that this would have really affected the business’s growth. However, that’s not the case.
Meta has AI to thank as the company’s recommendation system for social media as well as its advertising platform is generating a lot of income. While Meta did suffer at the hands of Apple’s decision to introduce app-tracking changes, it’s slowly but surely recovering from the phase.
There was a time when the company had warned investors about Apple’s changes negatively impacting the company but three years from that day, business is bigger and better than before.
Meta did struggle in terms of adapting to new changes. It rolled out all kinds of tests including VR and paid subscriptions. However, it cannot be denied that ads are where the majority of its revenue comes from. For instance, advertising is responsible for 98% of the company’s overall revenue for the second quarter of this year.
The company’s advertising was more focused on desktops until the arrival of smartphones. This is where the ad business for mobile phones became the biggest revenue generator. Again, Apple’s changes to privacy meant a huge setback. Advertisers couldn’t track users for ad-targeting purposes on Facebook.
This led Meta to think outside the box. It’s created a new set of ad tools using AI technology.
Today, nearly all of its clients make use of the tool dubbed Advantage + and the figure has hit one million. The tool is designed to select specific targets and optimize placements easily and more efficiently.
Meanwhile, one study commissioned by Meta showed how clients generated more revenue than anticipated. There has been a 12% rise in business since the start of 2022.
Furthermore, the study has proven how AI-based recommendations keep increasing users’ engagement and driving more ad business. All the ad impressions throughout Meta’s family of platforms keep increasing by the day. It’s a 10% YOY rise during Q2 of this year.
It’s also interesting to note that more than half of the content that you see on Instagram is driven by AI recommendations. And the fact that Reels make up more than 50% of viewership says a lot.
A new update by Meta also spoke about how it will be testing a new feature that enables AI-embedded chats for businesses. This makes it simpler for them to sell products and get the leads they need for growth.
We agree that while Meta might have seen several challenges in the past, thanks to Apple, it’s well on the way to attaining success. Thanks to AI tools, Meta’s ad business is performing its best. This might be one of the main reasons why the company is planning to invest big in generative AI for the future.
As explained by CEO Mark Zuckerberg in the latest earnings call to investors last month, AI is big on the agenda and after seeing the results, we can only imagine why that’s sensible.
Read next: OpenAI Allows Developers To Customize GPT-4o Models For Specific Uses
by Dr. Hura Anwar via Digital Information World
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