Meta Platforms is seeing significant growth in the adoption of its generative AI tools, with more than 4 million advertisers now using at least one of its offerings. As the company pushes forward into what CEO Mark Zuckerberg has called a “defining” year for AI, Meta’s advertising revenue and investment in AI infrastructure are poised to make a major impact.
Strong Earnings and AI’s Growing Role
Meta’s advertising business saw a 21% year-over-year revenue growth in Q4, reaching $48.39 billion, driven in part by increased ad impressions across platforms like Facebook and Instagram. The average price per ad also rose by 14%. As Meta continues to refine its advertising precision, the company predicts further growth in cost per thousand impressions (CPMs), which will drive more conversions.
The big story, however, lies in the integration of generative AI into its advertising strategies. Meta’s growing focus on AI has led to substantial adoption, with over 4 million advertisers now utilizing tools like image, video, and text generators — a sharp increase from 1 million just six months ago.
Generative AI and Advertising Innovation
Meta’s AI efforts are focused on open-source technology, giving developers flexibility to create their own models. The company’s AI-powered advertising products, such as its video generation tool Image Animation, saw huge engagement, with hundreds of thousands of advertisers using it monthly. Additionally, Advantage+ shopping campaigns — Meta’s AI-driven ad product — grew by 70% year-over-year in Q4, surpassing $20 billion in annual revenue.
Meta plans to continue ramping up its investment in AI, with an estimated $60 billion to $65 billion earmarked for AI infrastructure and talent this year. The growth of Meta AI, the company’s personal assistant tool, is also noteworthy, reaching 700 million monthly active users and projected to hit 1 billion this year.
Balancing Innovation and Brand Safety
Despite recent challenges around issues like brand safety and competition from generative AI platforms like China’s DeepSeek, Meta’s advertising business remains robust. While some concerns linger about changes in Meta’s fact-checking policies, analysts believe that the company’s reach and advertising effectiveness will keep advertisers on board, even amid uncertainty.
Forrester VP Mike Proulx noted, “Meta dominated Q4 by pulling in considerably more revenue than any other quarter in the last two years,” adding that advertisers will likely continue to spend on Meta platforms due to their broad reach and strong return on investment.
The Future of Meta’s AI and Ad Strategy
As Meta continues to innovate with its AI tools and expand its reach, 2025 could prove to be a game-changing year for the company and its advertisers. With generative AI playing a central role in advertising efficiency, Meta is setting the stage for a more AI-driven future — one that could redefine how brands interact with consumers and measure success in digital advertising.