• Home
  • Technology
  • Gaming
  • Entertainment
  • World & Business
  • Science
  • Sports
  • AI
HomeTechnologyGamingEntertainmentWorld & BusinessScienceSportsAI
    • HomeTechnologyGamingEntertainmentWorld & BusinessScienceSportsAI
    • Home
    • Technology
    • Gaming
    • Entertainment
    • World & Business
    • Science
    • Sports
    • AI
    AI
    Reaction

    The potential payoff of AI-improved ads for Google and Meta

    Ben Thompson argues that Google and Meta may make more from AI-driven ad gains than AI labs do from selling their models.

    PM
    PO
    3 Sources, ,

    TLDR

    Ben Thompson argues that Google and Meta may be making more money by using AI to improve ads than labs such as Anthropic and OpenAI make from selling AI. He says their ad marketplaces let them test AI-created images and text, and that even a few percentage points of improvement could bring billions of dollars in returns.

    Combined views

    49.4K

    3 Sources, first seen 5h ago

    Combined views

    49.4K

    3 Sources, first seen 5h ago

    319 likes
    5h ago
    first seen 5h ago
    319 likes
    29 comments
    156 saves
    28 reposts

    Sentiment

    Positive——Negative

    Summary

    Not enough discussion yet.

    No sentiment analysis available yet.

    Featured Source
    29 comments
    156 saves
    28 reposts

    Sentiment

    Positive——Negative

    Summary

    Not enough discussion yet.

    No sentiment analysis available yet.

    Today's Rank

    —

    Not ranked yet

    Today's Rank

    —

    Not ranked yet

    3 Sources

    @patrick_oshagBen Thompson says Meta and Google are making more money using AI to improve their ads than the labs are from selling it: "The biggest monetization right now is probably not in Anthropic or OpenAI. It's the incremental gain that is happening for Google and Meta." "They can actually validate their image creation and their text creation in a way no one else can. Their validation is the ad marketplace, running a gazillion A/B tests to see what works. Most ads don't convert." "What do LLMs do? LLMs predict. We're going to move to this world where Meta is going to look at people and say, this person probably wants to see this next. And they're going to go find that thing and show it to them." "The potential upside in terms of just showing people better ads that are more relevant to them, they only need to increase a few percentage points for the returns to be billions and billions of dollars. This alone is worth them investing in being on the leading edge."5h
    @patio11@patrick_oshag … I buy that possibility prospectively but if true currently then should be trivially visible in quarterly reports. We should see YOY growth which is high and accelerating. We do not see this, I do not think. (I have not checked the LLM’s work in pulling these numbers.)5h

    3 Sources

    @patrick_oshagBen Thompson says Meta and Google are making more money using AI to improve their ads than the labs are from selling it: "The biggest monetization right now is probably not in Anthropic or OpenAI. It's the incremental gain that is happening for Google and Meta." "They can actually validate their image creation and their text creation in a way no one else can. Their validation is the ad marketplace, running a gazillion A/B tests to see what works. Most ads don't convert." "What do LLMs do? LLMs predict. We're going to move to this world where Meta is going to look at people and say, this person probably wants to see this next. And they're going to go find that thing and show it to them." "The potential upside in terms of just showing people better ads that are more relevant to them, they only need to increase a few percentage points for the returns to be billions and billions of dollars. This alone is worth them investing in being on the leading edge."5h
    @patio11@patrick_oshag … I buy that possibility prospectively but if true currently then should be trivially visible in quarterly reports. We should see YOY growth which is high and accelerating. We do not see this, I do not think. (I have not checked the LLM’s work in pulling these numbers.)5h