With Meta continuing to focus on machine learning, the company reported some pretty solid results yesterday regarding the effectiveness of its automated ad targeting tools. 

The tech giant says that during the fourth quarter of 2022, advertisers saw over 20% more conversions than the year before. While recent tests have found that advertisers who use Advantage+ shopping campaigns are seeing a 30% increase in return on ad spend.

Meta also said that some of its products such as Reels ads and Shops ads are performing better due to Advantage+ shopping campaigns.

These automated campaigns let advertisers set their business objective, target country, advertising creative, and budget. Then Meta's AI systems do the rest. 

🎛️ Control > Performance 

But even with Advantage+ campaigns reportedly improving performance, marketers are still resisting automation. Insider Intelligence reported today that many advertisers have expressed concern that they are losing too much control over their campaigns to Meta's algorithms, and as a result have opted out of Advantage+.

One UK-based retailer said that despite significantly lower CPM prices, the company had to give up too much control. Meanwhile, a UK-based games company withdrew from Advantage+ because it recommended an ad that attracted hateful comments. The company said that the tool lacked human emotion and common sense.

According to an industry analyst, advertisers should keep in mind that Meta has a history of inflating metrics for its benefit, and advertisers and agencies should be approaching this with “extreme vigilance”. 

The report noted that while agencies view Advantage+ shopping campaigns as a helpful addition to their existing tactics, the platform's highly automated and opaque nature could significantly alter the role of agencies in Meta's advertising business. As advertisers rely more on automated campaigns, agencies may become less necessary.

Quoting Insider Intelligence: 

Meta relies on an extensive agency network to convince brands that the social giant is a shrewd place to invest ad dollars. Leaning into AI and automation could upset the applecart and lose the allyship from agencies it has long relied on.