Meta Wins in Digital Ad Space as Other Companies Falter
By Movieguide® Contributor
As many companies struggle to see success in the digital ad space, Meta is rising above the competition — here’s why.
“With the economy going south, the ad business tends to go with it, and in the past couple of weeks, we’ve gotten a bunch of red flags here,” MAD MONEY host Jim Cramer explained. “Lots of weaknesses. However, there is one big exception, and that’s Meta platforms, which is one of the few mega-cap tech stocks to actually rally in response to its earnings report.”
He asked, “So what’s going wrong in this industry? And how the heck has Meta managed to transcend it?”
Cramer first touched on Netflix’s troubles, explaining, “Basically, Netflix has a ton of demand from advertisers, but they don’t yet have a large enough ad-supported subscriber base for that to truly move the needle.”
YouTube and Amazon also fell short of expectations in the digital ad category. However, Meta is going strong, and Cramer has a theory about why.
“Meta’s winning in digital advertising because they don’t just help companies place ads and target the right audience, they also help those companies measure the performance of their ads after the fact,” he explained, adding that the company’s AI tech is helping them with this.
Basically, Meta offers the companies who place ads with them the opportunity to see just how well their ads are doing with consumers. Advertisers are more likely to place ads with Meta because they have the data to justify campaigns.
MarTech reported that Meta’s ad revenue jumped 22% last quarter, adding, “The company’s overall revenue increased by the same percentage to $39.07 billion, its fourth straight quarter with +20% growth.”
Movieguide® previously reported on the other ways Meta is using their AI tech to gather user information:
Meta recently revealed it is using public data on its platforms to train its AI, something that is making some users uncomfortable. Thankfully, there are ways to stop the tech giant from using your data.
Meta’s use of its platform’s data was revealed due to laws in the EU that require companies to disclose where they parse data and allow users to opt out of data collection. While these same protections don’t exist for U.S. users, Meta has signaled that it only takes data from public accounts. Thus, users can protect their data by making their accounts private.
While this change will protect your data, it isn’t a perfect fix, as changing an account to private only allows approved accounts to see your posts. While American users want an easier way to opt out of data collection, Meta likely won’t introduce this feature unless federally mandated.
“Across the internet, public information is being used to train AI. This is not unique to our services. We’re committed to building AI responsibly and believe it’s important that people understand how we train the models that power our generative AI product,” a Meta spokesperson told Fox News.
