Advertisers continue to adapt as social media platforms like Meta roll out new features that use AI. In September, the second-largest digital ad platform in the United States announced new features that rely solely on AI to create content for both users and businesses. Advertisers should be aware of their potential impact.
Meta Connect: Organic AI Could Affect Advertisers
At Meta Connect, the company’s annual developer conference, Meta said that it will start serving up AI-generated content suggested to its users. Have you noticed that a platform like LinkedIn keeps prompting you to use AI to write your posts? Meta is going to practically create your content for you if you opt in as a user.
Meta announced that it will create images based on users’ interests and others featuring their likenesses, allowing them to star in and share personalized content with friends. Users will also be able to customize this content by swiping to see more options generated in real-time. Additionally, Meta confirmed that people can opt out of auto-generated content if they choose.
This is not surprising news. Meta’s decision builds on its strategy of using the Facebook feed to showcase content its algorithm predicts users will enjoy, often prioritizing these recommendations over posts from friends. But the announcement has raised concerns that user feeds will become diminished by AI-generated content that seems inauthentic and monotonous, especially because generative AI is still evolving.
On the other hand, AI continuously improves. It’s only a matter of time before users who opt into the AI-generated options begin to see an improvement in the quality of the content created. This will require Meta to be proactive about labeling AI-generated content as “made by AI” so that users are not confused by what’s real and what is AI.
Implications for Advertisers
This development matters to advertisers for a few reasons:
- Increased competition: advertisers are competing not only with other brands and human creators, but also with AI-generated content for user attention. This could potentially make it more challenging to stand out in users’ feeds.
- Content quality expectations: as AI-generated content becomes more prevalent, users may develop higher expectations for the quality and relevance of all content, including ads. Advertisers may need to elevate their content strategies to meet these new standards.
New AI Tools for Advertisers
As if to say, “If you can’t beat ‘em, join ‘em,” Meta introduced several new AI-powered advertising tools and features ahead of the 2024 holiday season, aimed at helping businesses boost sales and engage customers more effectively. The company is integrating new AI tools into Advantage+ shopping campaigns, enhancing both the creative and targeting capabilities of advertisers.
Promo Features
Meta is testing new ad formats that highlight promotions like first-time purchase offers and personalized discounts, available across Facebook and Instagram Reels. This update simplifies the process of applying promo codes within ads, which can directly lead to increased conversions. According to Meta, campaigns utilizing these new features have seen a notable increase in cost efficiency, reducing the cost per purchase by an average of 9.1%.
Reminder Ads
Advertisers can use reminder ads to nudge shoppers about upcoming sales and events, creating more frequent touchpoints with consumers. These ads can be particularly effective for driving in-app purchases during key moments in the buyer’s journey. Additionally, these ads can now include external links to sales or event pages, broadening the ways businesses can convert consumer interest into action.
Multiple Landing Pages
A new feature allows advertisers to link multiple landing pages within a single image or video ad. This means customers can more easily find the most relevant products through a streamlined ad experience, without needing to scroll or leave the platform. This not only boosts ad engagement but also helps businesses present more tailored options to different audiences within a single ad campaign.
Location-Based Targeting
Meta is also testing location-based targeting ads that are designed to engage both in-store shoppers and tourists. This location-specific approach helps businesses optimize their ads for local foot traffic while maintaining their focus on online sales. The dual targeting option offers a valuable opportunity for businesses looking to capture holiday traffic from both physical and digital storefronts.
Enhanced Attribution and AI Optimization
Meta has also improved its ad attribution tools, allowing advertisers to better understand the effectiveness of their holiday campaigns. By offering more precise conversion tracking and AI-powered optimization, businesses can now optimize their campaigns for profit and predicted customer lifetime value, rather than just immediate sales. Meta’s early tests show these updates can lead to a 20% improvement in ad performance, giving brands a competitive edge during the busy holiday season.
What Advertisers Should Do
The onslaught of AI can be mystifying to an advertiser, but True Interactive has your back. We suggest that advertisers be ready to:
Elevate Content Quality
With AI-generated content becoming more prevalent, users may develop higher expectations for engaging, authentic, and personalized content – perhaps not immediately (because AI is still in its infancy) but over time. Advertisers need to ensure their ads meet or exceed these standards by investing in creative strategies that resonate emotionally and stand out in crowded feeds.
Use Meta’s New AI-Powered Tools – Carefully
Take advantage of the new AI tools Meta is offering. The Promo Features, Reminder Ads, and Multiple Landing Pages allow for more tailored customer interactions, driving engagement and conversion. We also recommend exploring Meta’s new location-based targeting to reach both online and in-store audiences.
This feature offers a way to blend digital advertising with brick-and-mortar strategies, enhancing relevance for local and tourist traffic. Incorporate these tools into campaigns to remain competitive, especially during the holiday season. But do so carefully. Continuously monitor their performance. Don’t simply hand over the keys to Meta. Be prepared to make mid-course corrections if you are not achieving desired results.
Stay Authentic Amid the Proliferation of AI Content
As Meta increasingly integrates AI-generated content into users’ feeds, you as an advertiser need to be careful about maintaining authenticity. Be sure to focus on storytelling that feels personal and genuine.
At True Interactive, we’ve been helping our clients maximize their digital ad spend since digital advertising’s inception. To learn more about our client successes, visit our website and read our case studies on digital advertising.
