Meta Platforms Inc. (NASDAQ:META) is facing a significant setback as its AI-powered ad tools are malfunctioning, leading to a waste of ad budgets and a decline in sales. This has prompted businesses to reconsider their advertising strategies on Meta’s platforms.
What Happened: Meta’s automated ad tools, particularly the Advantage Plus shopping campaigns, have been misfiring since Valentine’s Day, reported The Verge. The glitch has resulted in a significant increase in cost per impressions or CPMs and a failure to generate sales, causing small businesses to lose their ad budgets.
However, the recurring issues, the Mark Zuckerberg-led company has reportedly not been forthcoming about the performance glitches, leading to widespread uncertainty among advertisers. The company’s customer support has also been affected by recent layoffs, with many inquiries now being directed to AI chatbots.
Marketers say that as opposed to Meta’s enthusiastic promotion of Advantage Plus shopping campaigns as an effortless, “set it and forget it” ...