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Facebook and Instagram owner Meta to enable AI ad creation by end of next year | Meta


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owner Meta to enable AI ad creation by end of next year | Meta

The owner of

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is to help advertisers to fully create and target campaigns using artificial intelligence tools by the end of next year, in a move that sent shock waves through the traditional marketing industry.

Mark Zuckerberg’s Meta, which also owns WhatsApp, aims to directly target brands’ marketing budgets, posing a threat to the advertising and media agencies that handle client campaigns and budgets.

The AI tools under development, first reported by the Wall Street Journal, will allow brands using Meta’s advertising platform to create ads using a product image and a planned marketing spend.

Meta’s platform already offers some AI tools that allow advertisers to tweak existing ads before they appear on

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.

However, the new tools could disintermediate the traditional advertising creation, planning and buying roles played by agencies, as well as open up a long tail of advertisers with small budgets that cannot afford to retain marketing services companies.

The AI tools would create the entire ad – including imagery, video and text – and also target it to users in line with a client’s budget.

Targeting such as geolocation would enable an advertisement for a holiday company, for example, to be tailored to offer deals specifically related to users’ likely destinations of interest.

Investors quickly sold off some of the world’s largest marketing services as news of Meta’s planned AI rollout, which could significantly swell the $160bn (£118bn) the company already makes annually from advertising, emerged on Monday.

Shares in WPP dropped 3% in early trading, while the French companies Publicis Groupe and Havas suffered 3.9% and 3% falls respectively.

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Zuckerberg, who is heavily focused on driving AI-powered advertising, has referred to the development of new tools as “a redefinition of the category of advertising”.

In April, Meta updated its

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on spending for the next year with plans to invest between $64bn and $72bn in capital expenditure, including the cost of building out AI infrastructure.

The company had originally said it expected to spend up to $65bn in 2025.



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