Meta Platforms, the company that owns Facebook, Instagram and WhatsApp, will bet on efficiency in 2023 with its artificial intelligence solutions to increase the performance of advertiser advertising campaignsall this in a complicated environment for the technology sector full of thousands of layoffs and search for profitability.
“Although we have the opportunity to make resources more efficient in an unfavorable macroeconomic environment, the best way to face a crisis season is to grow, seeking relevance and permanence in the market, reaching users in the most effective and efficient way,” said Marco Casarín, general director of Meta México, at the Meta Summit.
The company, whose income comes from brand advertising spend, introduced Meta Advantage, an AI-powered solution for marketers that helps develop campaigns with up to 150 different combinations of ads and that promises increases of up to 32% in investment returns.
“We have greatly simplified the process of steps (in advertising campaigns) from eleven to two, but with 150 variables to optimize how we reach audiences (…) The AI they see on our platforms is already creative and builds things for our approval or not of this”, assured Marcos Casarin at the event that brought together more than 300 brands and advertising agencies to learn about Meta’s business strategy for 2023.
Short videos and messaging, the other pillars of Meta
Mark Zuckerberg’s company also showed the increase in views of Reels, its short video format with which it competes with TikTok. According to the company, in 2022 there were 140 billion views of Reels on Facebook and Instagram per day , Mexico being one of the countries that generates the most content in this format.
“This year we have focused 81% of our resources on making each of our platforms more powerful and we have done very well. More than 3.7 billion users connect to our platforms per month and 2 billion users do so daily”, indicated Casarin.
Meta ensures that 40% of advertisers already use advertising in Reels.
On the other hand, Nikila Srinivasan, Vice President of Business Messaging Product at Meta, stated that about a billion people a week communicate with a business on WhatsApp, Messenger and Instagram. and in Mexico 66% of Internet users communicate with a commercial or service account through messaging at least once a week.
Meta Platforms will publish its results for the first quarter of 2023 on Wednesday, April 26, after having made two rounds of layoffs at the end of 2022 and the beginning of this year, in which it has dispensed with more than 20,000 collaborators.
Critical moment for the company
In 2022, Meta saw its profits plummet by 41% in the 2022 financial yearup to 23.200 million dollars, with a small decrease in its billing and a significant increase in costs.
Like other technology companies, it was affected by inflation, the weakness of the advertising market, the increase in competitors and the normalization of the demand for digital entertainment, which increased extraordinarily after the outbreak of the pandemic.
Companies in the technology sector have laid off more than 290,000 workers since the start of 2022, according to the Layoffs.fyi site.
In the last 5 days, Meta’s shares have had a reduction of 3.8%, although in the course of 2023 they have gained 67%.