Meta AI ads

Meta is doubling down on AI, rolling out tools by the end of next year that will allow advertisers to create and target entire ad campaigns, text, video, imagery, and all, using just a product image and a budget.

The move has sent ripples through the traditional marketing industry, as it threatens to bypass the creative, planning, and media-buying roles traditionally filled by ad agencies. While Meta says it's not trying to kill off agencies, investors clearly got the message; shares in WPP, Publicis Groupe, and Havas all took a knock.

The new AI tools aim to "level the playing field" for small businesses that can't afford agency support, allowing them to produce and distribute tailored campaigns at scale, that are location-specific.

The company, which already generates $160 billion in ad revenue annually, is looking to swell that figure as it ramps up AI infrastructure spending to as much as $72 billion next year. Ad agencies probably still have a future, particularly in cross-platform strategy and measurement, but automation is clearly coming for the bulk of the heavy lifting.