UNITED STATES: Mark Zuckerberg, CEO of Meta Platforms, formerly known as Facebook, has highlighted the role of artificial intelligence (AI) in driving the success of the company’s short-video app Reels. According to him, AI recommendations have led to a more than 24% increase in the time spent by users on Instagram, where Reels is available.
In a Facebook post announcing Meta’s quarterly results, Zuckerberg mentioned that the company’s AI research has been “driving good results across our apps and business.”
He explained that Meta’s investment in recommendations and ranking systems has resulted in over 20% of content in users’ feeds being recommended by AI from accounts they don’t follow. That represents around 40% of the content that people see on Instagram as a whole.
Zuckerberg also highlighted the monetary benefits of AI use, stating that Reels monetization efficiency is up over 30% on Instagram and over 40% on Facebook quarter over quarter. Moreover, the daily revenue from Advantage+ shopping campaigns has increased by 7x in the last six months.
In addition to Reels, Zuckerberg mentioned the progress made in Meta’s business messaging services. According to him, there are now 40% more companies utilising WhatsApp’s paid messaging service than there were three months prior.
Meta Platforms has merged its advertising product, business messaging, and commerce departments into one division as part of its effort to reduce the ranks of middle management across the company.
With plans to remove 21,000 positions and flatten its middle-management structure, Meta has begun an aggressive cost-cutting effort with the goal of making 2023 the “year of efficiency.”
In conclusion, Zuckerberg’s comments demonstrate the significant impact of AI-powered recommendations in driving user engagement and monetization on Meta’s platforms.
As the company continues to streamline its operations, it will be interesting to see how it leverages AI to create more value for its users and advertisers.
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