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Meta Plans Full AI Ad Automation By 2026
Meta will let businesses fully automate ad creation and targeting with AI by 2026, shaking up the advertising world and empowering small brands.
In a rush? Here are the quick facts:
- Brands can input a product image and budget.
- AI will generate full ads, including text and video.
- Ad agency stocks dropped after Meta’s announcement.
Meta, which operates Facebook, Instagram, and WhatsApp, has announced plans to achieve complete automation of advertising creation and targeting through AI by 2026, as first reported by The Wall Street Journal. Brands can use the tools to upload product images and set budgets, which will trigger Meta’s AI system to create full ads—including text, video, and images—that will reach users through location- and preference-based
CEO Mark Zuckerberg described this development as “a redefinition of the category of advertising” which could redirect massive marketing funds from traditional advertising agencies, as reported by The Guardian. The annual ad sales revenue of Meta reaches $160 billion while the company maintains 3.4 billion active users across its platforms, as noted by Reuters.
Meta’s chief marketing officer Alex Schultz stressed this isn’t a move to kill off agencies. “We believe in the future of agencies,” he said on LinkedIn. “We believe AI will enable agencies and advertisers to focus precious time and resources on the creativity that matters,” he added.
But he also noted: “At the same time, millions of small businesses rely upon our platforms to grow. For these businesses who aren’t able to work with an agency, or don’t have time during their busy days to think about their creative or targeting, that’s where AI – and tools such as our Advantage+ suite of AI-enabled solutions – can help level the playing field.”
Investors reacted quickly. Reuters reported that major advertising company stocks declined in value with WPP experiencing a 2% drop and Publicis Groupe and Havas each losing more than 3% and Interpublic and Omnicom suffering losses. The stock price of Meta increased by almost 1% during this time.
Through its AI one-stop shop Meta allows businesses to establish goals and budget assignments while AI executes the remaining tasks. The AI ad tool development by Snap and Pinterest and Reddit faces ongoing challenges regarding brand safety and creative control management.