Equities

Meta Launches AI Ad Tools for SMBs on FB, Instagram

Meta introduces AI tools for advertisers to generate marketing materials, aiming to reduce costs for small and medium-sized businesses.

By Alex P. Chase

5/7, 16:24 EDT
Meta Platforms, Inc.
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Key Takeaway

  • Meta introduces AI tools for advertisers on Facebook and Instagram, enabling image and text generation for marketing materials.
  • New features include editing ad backgrounds, generating ad titles with Llama 3 AI, and expanding Meta Verified with four subscription tiers.
  • Aimed at aiding small- to medium-sized businesses by reducing marketing costs through free promotional text and image creation.

AI-Driven Advertising Tools

Meta Platforms Inc., the parent company of Facebook and Instagram, is enhancing its advertising capabilities with new artificial intelligence (AI) tools. These tools allow advertisers to create marketing materials, including images and messaging, through generative AI prompts. For instance, uploading a product photo enables Meta's AI to generate new images of the product for marketing purposes. This feature is already available to some advertisers, with plans to expand it in the coming months to include text prompts for creating variations of the original image. Additionally, Meta's AI can generate text for advertisements, such as headlines and primary ad copy, with ongoing tests to reflect a brand's voice and tone based on previous campaigns and text inputs.

Expanding Meta Verified and Ad Manager Capabilities

Meta is also updating its Meta Verified business page verification service alongside the new AI advertising tools. The Meta Ad Manager, a campaign management portal, now includes enhanced AI tools for editing ad backgrounds and the product images themselves, creating multiple ad design versions, and overlaying text on AI-generated images. The company has introduced a new version of Meta Ad Manager that can generate ad titles and align prose with a company's content tone and style guidelines, powered by Llama 3, Meta's latest large language model. Meta Verified is expanding to additional countries and will now offer four subscription tiers, providing businesses with various benefits, including a verified badge, account impersonation monitoring, and enhanced discoverability.

Impact on Small and Medium-Sized Businesses

The majority of Meta's advertisers are small- and medium-sized businesses with limited budgets for professional marketing campaigns. The new generative AI tools could potentially allow these companies to create promotional texts and images at no cost, significantly reducing marketing expenses. Meta's advancements in AI are not only aimed at improving advertising outcomes but also at enhancing the overall user experience on its platforms, with AI recommendation algorithms influencing what posts people see in their social network feeds.

Management Quotes

  • Mark Zuckerberg, CEO of Meta Platforms Inc.:

    "We are currently testing the ability for the generated text to reflect your brand’s voice and tone, by highlighting key selling points based on your previous campaigns and text input."