Meta's Q4 ad revenue jumps 21% to $46.8 billion, driven by AI...
Meta Platforms Inc recorded significant growth in profit and revenue during the fourth quarter of 2024, largely propelled by a surge in advertisement revenue across its social media platforms. The company's Q4 financial report revealed an impressive ad revenue of $46.8 billion, marking a substantial 21% increase from its Family of Apps. Within the realm of ad revenue, the e-commerce sector emerged as the primary driver of year-over-year expansion, as highlighted by Chief Financial Officer Susan Li.
Regional Ad Revenue Performance
When analyzing the geographical distribution of ad revenue growth, Meta's CFO Susan Li pointed out that the Rest of the World witnessed the highest surge at 27%, closely followed by Asia-Pacific and Europe at 23% and 22% respectively. North America also experienced a notable 18% growth in ad revenue during the same period.
For further insights, you can check Meta’s AI ambitions soar; Mark Zuckerberg frames 2025 as a pivotal year for AI
Enhancements in Ad Delivery and Performance
In Q4, Meta observed a 6% increase in the total number of ad impressions served across its services, accompanied by a 14% rise in the average price per ad. Susan Li attributed this upward trend in pricing to heightened demand from advertisers, partly fueled by enhanced ad performance metrics.
According to Li, the company's strategic focus on personalized ad placement, including optimal positioning within user feeds, has significantly improved ad supply efficiency and revenue generation.
Advancements in Machine Learning
During the latter half of 2024, Meta unveiled a new machine learning system named Andromeda, developed in collaboration with Nvidia. This innovative system facilitated a remarkable 10,000x enhancement in the complexity of models utilized for ad retrieval purposes.
The increased sophistication in model complexity has empowered Meta to deploy 'sophisticated' prediction models, enhancing the personalization of ad displays for users. As a result, the quality of ads shown to individuals on tested objectives saw an impressive 8% boost, as stated by Susan Li.
For more information, you can refer to X-rival Threads to start testing ads as Meta eyes new revenue stream
Automation and Revenue Growth
Furthermore, Meta intensified the automation of ad campaigns through Advantage+, achieving a revenue milestone surpassing a $20 billion annual run-rate, with a remarkable 70% year-over-year growth in Q4.
The integration of MITA into the ranking and recommendation inference processes for ads and organic content further underscored Meta's commitment to enhancing advertiser tools and meeting evolving market demands, Susan Li emphasized.
