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Customers say Meta’s ad-buying AI blows through budgets in a matter of hours
news.movim.eu / ArsTechnica · Yesterday - 18:23 · 1 minute
Give the AI access to your credit card, they said. It'll be fine , they said. Users of Meta's ad platform who followed that advice have been getting burned by an AI-powered ad purchasing system, according to The Verge . The idea was to use a Meta-developed AI to automatically set up ads and spend your ad budget, saving you the hassle of making decisions about your ad campaign. Apparently, the AI funnels money to Meta a little too well: Customers say it burns, though, what should be daily ad budgets in a matter of hours, and costs are inflated as much as 10-fold.
The AI-powered software in question is the " Advantage+ Shopping Campaign ." The system is supposed to automate a lot of ad setup for you, mixing and matching various creative elements and audience targets. The power of AI-powered advertising (Google has a similar product ) is that the ad platform can get instant feedback on its generated ads via click-through rates. You give it a few guard rails, and it can try hundreds or thousands of combinations to find the most clickable ad at a speed and efficiency no human could match. That's the theory, anyway.
The Verge spoke to "several marketers and businesses" with similar stories of being hit by an AI-powered spending spree once they let Meta's system take over a campaign. The description of one account says the AI "had blown through roughly 75 percent of the daily ad budgets for both clients in under a couple of hours" and that "the ads’ CPMs, or cost per impressions, were roughly 10 times higher than normal." Meanwhile, the revenue earned from those AI-powered ads was "nearly zero." The report says, "Small businesses have seen their ad dollars get wiped out and wasted as a result, and some have said the bouts of overspending are driving them from Meta’s platforms."