Meta has reported a strong rise in advertising revenue supporting the case that consumers and advertisers are still spending despite a tougher economic climate.
The parent company of Facebook and Instagram did warn that the expenses would rise this year and next, partly due to increased spending on infrastructure, which will back up future AI developments.
“We continue to see strong engagement across our apps and we have the most exciting roadmap I’ve seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall,” Meta Chief Executive Mark Zuckerberg said.
Ad revenue rose 12 per cent in the second quarter of 2023, as companies spent on digital ads on the traditional platforms like Meta and Google. At smaller players like Snap, things are not as positive.
Meta’s revenue forecast did not specify whether the figure includes any sales that might come from the recently launched Threads app, a direct rival to Twitter which has rebranded to X.
Currently Threads will not accept adverts while it is building up followers.
Zuckerberg said he has identified three product categories for AI. These include features for advertisers, agents on chat and internal company productivity tools.
Meta owns a number of apps like Messenger, Instagram and WhatsApp, and is moving beyond 2D screens toward immersive experiences like augmented and virtual reality.
