Written By Ezeja Victor
Meta Platforms Inc the parent company of Facebook, Instagram and WhatsApp has deployed its Artificial Intelligence (AI) brand for deepening engagement with the audience globally and boosting revenue across the social media platforms as well.
Chairman and CEO of Meta, Mark Zuckerberg recently announced that Meta’s revenue increased in the first quarter (Q1) of 2023 and is attributable to the deployment of Artificial Intelligence (AI) that recommends content to users, leading to a 24 percent increase in time spent on Facebook and Instagram.
Meta’s Investment in AI
Zuckerberg, during the earning call, said the deployment of AI has contributed to Meta’s earnings growth of 3 percent in Q1 2023.
The company’s revenue rose to $28.65 billion, while daily active users on its platforms rose to 3.02 billion on average for March 2023, a 5 percent year-on-year increase.
He said there are two major technological waves driving the company’s roadmap – a huge AI wave today and a building metaverse wave for the future.
“Our AI work comes in two main areas: first, the massive recommendations and ranking infrastructure that powers all of our products -from feeds to Reels to our ads system to our integrity systems and that we’ve been working on for many, many, years — and, second, the new generative foundation models that are enabling entirely new classes of products and experiences.”
He said more than 20 percent of contents in Facebook and Instagram reels are recommended by AI from people, groups and accounts that users don’t follow.
“Across all of Instagram, that’s about 40% of the content that you see. Since we launched Reels, AI recommendations have driven a more than 24% increase in time spent on Instagram.”
AI work, Zuckerberg said, is also improving monetization.
“Reels monetization efficiency is up over 30% on Instagram and over 40% on Facebook quarter over quarter. Daily revenue from Advantage+ Shopping Campaigns is up 7x in the last six months.”
Zuckerberg further said that the company’s work on building out a business messaging as the next pillar of its business is making progress, noting that their success depends on delivering results for other businesses.
“I shared last quarter that click-to-message ads reached a $10 billion revenue run-rate. Since then, the number of businesses using our other business messaging service — paid messaging on WhatsApp — has grown by 40% quarter-over-quarter.”
Benefits of Advertising on Meta Platforms (Facebook & Instagram)
Zuckerberg said that the company did a study recently with economists at Berkeley to determine the impact their services make and they concluded that “every dollar spent on our ads drives on average $3.31 in revenues for our advertisers in the US. So that means over $400 billion in economic activity annually is linked to supply chains relying on our platforms, supporting more than 3 million jobs.
Meta Continues to Invest in the Metaverse
Zuckerberg also debunked recent reports that Meta might have given up on its Metaverse project. He reiterated that the company’s vision for the Metaverse is still intact, and Meta will continue to invest in it alongside AI. He stated that the company has been focusing on both AI and the Metaverse for years now and will continue to do so.
“Metaverse technologies will also help to deliver AI as well. For example, embodying AI agents will take advantage of the deep investment we’ve made in avatars over the last several years.
“Building the metaverse is a long term project, but the rationale for it remains the same and we remain committed to it,” he added.