[marketingtech]

If AI can help an advertiser get the outcome they want in 1000 ad impressions instead of 5000 ad impressions (with more precise targeting or more appealing creative), Meta can 5x the price of those 1000 ad impressions, keep the advertiser happy with the same ROI they had before, and sell 4000 additional impressions to someone else as incremental profit.

Or they could 4.9x the price to show the current advertiser a better ROI and encourage higher spend from them, while still having the 4000 extra impressions to sell.

[dkrich]

This is precisely why I’m skeptical. It assumes that that first advertiser can sell more of the same products just with better copy or more targeted placement and that more advertisers can backfill the previously used inventory that the first advertiser no longer needs and enjoy better sales too.

But doesn’t that then mean that many more product sales are taking place as opposed to the same number of sales spread across more impressions? I don’t see how many more sales can take place without users spending more money or the number of users going up and my original point was that meta is surely tapping into that addressable market as it is. There are only so many consumer dollars to go around.