Meta said it will continue to invest billions of dollars on AI infrastructure, which will help propel its advertising revenue.
Meta, parent company of social media platforms Facebook and Instagram, reported a 22% increase in revenue for 2024, generating $164.50 billion. For Q4, revenue increased 21% year over year to $48.36 billion.
Advertising generated roughly 96% of Meta’s total Q4 revenue. Within the ad revenue bucket, the ecommerce vertical was the largest contributor to year-over-year growth, and the total number of ad impressions served across Meta’s services increased 6%. The average price per ad was up 14%, driven by an uptick in demand and improved ad performance.
One of the main ways Meta is boosting monetization is by growing its ad supply across lower-monetizing surfaces, such as video, as well as newer surfaces, like Threads, said chief financial officer Susan Li. It’s also making improvements to ad optimization and personalization.
For example, Meta considers where in the depth of someone’s feed to introduce an ad so that “it’s most optimal for the user and revenue,” Li said.
Don’t hold your breath, though, if you’re waiting for Threads to make a meaningful contribution to either total ad impressions or revenue in 2025.
Read the full article on Multichannel Marketer’s sister publication AdExchanger.
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