New Delhi: 

It marks a major change in the advertising industry. Meta’s proposal would remove the need for traditional agencies by managing every step of setting up and running ads. Shares in WPP and Publicis Groupe fell as much as 3.9% after investors reacted quickly.

Meta Platforms intends to allow brands to use its AI to make and target ads on its services by the end of this year, according to the Wall Street Journal. It wants advertisers to be able to upload a product picture and set their spending limit. The AI that Meta uses will design the ad’s image, video and text and set the target audience for it to appear on Instagram and Facebook.

Impact on marketing agencies

The new developments endanger the traditional ad agencies. Meta’s new AI may allow smaller businesses to create and target ads more cheaply. As AI becomes smarter, agencies are finding it tough to compete with the giant tech corporation.

AI to handle everything from copy to targeting

Meta uses AI to improve advertising campaigns before they reach the public. This new approach wants to achieve more than the previous approach did. Ads can now be personalised by brands to users in real time using things like their location. Mark Zuckerberg, CEO of Meta, mentioned that advertisers want AI tools that can be measured and applied on a large scale.

Zuckerberg’s idea is to give businesses a place where they can outline their own goals and budgets and let Meta’s AI handle everything else. Most of the $72 billion the company wants to spend on capital expenditure is aimed at strengthening its AI capabilities.

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