Meta's AI tools will create entire ad campaigns by 2026
What's the story
Meta, the parent company of Facebook and Instagram, is planning to launch artificial intelligence (AI) tools for ad creation by the end of next year.
The move comes as a major disruption in the traditional marketing industry.
The new tools will let brands using Meta's advertising platform create ads with just a product image and planned marketing spend.
Automation
How will the tools work?
The AI tools in question will be able to create an entire ad, including imagery, video, and text. They will also target it to users according to a client's budget.
For instance, geolocation targeting could tailor an advertisement for a holiday company, with deals specifically related to users' likely destinations of interest.
This could open up opportunities for advertisers with small budgets who can't afford marketing services companies.
Market impact
AI tools could disrupt traditional advertising roles
The new AI tools from Meta could disrupt the traditional roles of advertising planning, creation, and buying played by agencies.
This has already sent shock waves through the marketing industry.
Investors have reacted to this news by selling off shares in some of the world's largest marketing services.
British company WPP's stocks dropped 3%, while French firms Publicis Groupe and Havas saw their shares fall by 3.9% and 3%, respectively.
AI focus
Zuckerberg calls new tools a 'redefinition of advertising'
Mark Zuckerberg, Meta's CEO, has been vocal about his focus on AI-powered advertising. He has called the development of these new tools "a redefinition of the category of advertising."
In April, Meta revised its spending outlook for next year, planning to invest between $64 billion and $72 billion in capital expenditure including building out AI infrastructure.
This was an increase from the original estimate of $65 billion expected to be spent in 2025.