Three Ways AI Will Transform Meta in 2023
1/3/24—If 2023 was Meta's year of efficiency, 2024 will be its year of AI-fficiency. Here's how I believe AI will transform three key parts of Meta's business: advertising, creators and the metaverse.
1️⃣ Advertising
Meta Advantage uses AI to maximize the effectiveness of marketing campaigns on Facebook, Instagram and more. Advantage has already been one of its most successful ad product rollouts in company history.
I predict Meta will expand Advantage to more ad categories beyond its core commerce and app advertisers in 2024.
Meta will also expand its AI toolset to help advertisers -- particularly small businesses -- build ads that are more creative and more effective. Meta will face a lot of competition in this area, however.
I predict that Meta will turn to a time-tested tactic -- brute force -- to get advertisers to use its gen AI tools.
2️⃣ Creators
AI has already infiltrated the creator business, offering tools for everything from AI clones to dubbing to content creation. Video is also one of the biggest areas where AI can help.
I predict that by yearend Meta will offer scores of generative AI tools that Reels creators can use. This will help Reels become even more competitive with TikTok. Reels is already bolstering time spent on Instagram, and it's on a $10 billion revenue run rate.
3️⃣ Metaverse
Meta isn't abandoning the metaverse; losses at Reality Labs soared in 2023 and Mark Zuckerberg remains defiantly committed to building hardware and software for the virtual world. But since he also can't avoid the AI hype, the most logical thing to do is to combine them.
I predict Meta will rebrand the metaverse as the MetAIverse this year. It will continue to lose billions at Reality Labs but by tying those investments more closely to AI, it will be able to stave off investor concerns for another year.
🎥 In this Investor's Business Daily video podcast (recorded before I left Insider Intelligence last fall), I dug into more of Meta's successes and challenges in 2023.
Investors Business Daily Growth Stories Podcast, 9/28/23
