Meta’s “set it and forget it” AI ad tools are misfiring and blowing through cash
Meta’s “set it and forget it” AI ad tools are misfiring and blowing through cash
Is it me, or is it Meta? marketers ask.
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They cut thousands of jobs in the name of efficiency, then roll out an AI customer service bot to replace people in managing problems with their flashy new AI tool that is glitching out, more expensive and delivering worse results.
Surely nobody saw this coming right?
How is them making more money selling bogus ads "worse results" for them, though?
The worse results likely refers to results for advertisers but this will impact Meta's ad revenue in the long run.
The article cited an example with almost zero sales with CPMs of $250, which is crazy high. I'd also bet the biggest chunk of advertisers using these tools don't have sophisticated advertising strategies or resources. Many of them will probably pause these poor performing campaigns and be very restrictive with future budgets until performance improves.
In short, Meta took a lot of money in a short time but didn't earn much money back for advertisers, so they will spend less in the future and less money make Meta sad.
Next quarter doesn't exist right now, so Meta truly doesn't give a shit.