Jakarta, CNBC Indonesia – Google, Meta, and Snap ad revenues are starting to recover. Artificial intelligence technology makes digital advertising attractive again for brands.
Google, Meta, and Snap’s revenue from digital advertising managed to exceed investor estimates.
“AI helps advertisers reach the most people and most ideal targets, at the lowest price,” said Phiipp Schindler, Chief Business Office at Alphabet, Google’s parent company, as quoted Reuters.
Giant technology companies are competing to develop new features using AI. One of them is Performance Max, which uses AI to help decide how to use budget on Google’s advertising network.
Schindler said that advertising spending from the retail segment was very strong throughout July-September. The power of AI technology helps brands promote discounts to the right people, at a time when consumers are focused on price and convenience.
“The company has started to help retailers prepare for the long holiday period”
Alphabet’s advertising revenue rose 9.5 percent during July-September compared to the same period the previous year. In fact, YouTube recorded a 12 percent jump in revenue.
Meta stated that advertisements on their platforms, Instagram and Facebook, were viewed 31 percent more than the previous year. The company founded by Mark Zuckerberg has plans to pour capital into AI development.
Facebook and Instagram in recent years have used AI to support performance measurement features and marketing technology. AI Meta technology was so successful that Apple changed its privacy policy so that targeted advertising on Facebook and Instagram was no longer effective.
Now, Meta is building generative AI tools to create various variations of digital advertising.
“Facebook-Instagram tools for creating marketing campaigns can be used faster and easier,” the analyst was quoted as saying Reuters.
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Originally posted 2023-10-26 10:30:00.