Meta Ad Revenue Soars by 27% in Q1 2024

Meta’s ad revenue has surged by 27% in the first quarter of 2024, marking a significant improvement from the 4% growth observed in the same period last year. This impressive performance has been driven by the company’s innovative AI-powered tools and a growing user base across its family of apps.

Key Takeaways

• Meta’s ad revenue increased from $28.1 billion in Q1 2023 to $35.6 billion in Q1 2024.
• Total revenue for Meta grew from $28.6 billion in Q1 2023 to $46.4 billion in Q1 2024.
• The average price per ad rose by 6%, while ad impressions increased by 20%.
• Daily active users across Meta’s apps grew by 7% to 3.24 billion.

AI-Powered Tools Drive Growth

Meta’s CEO, Mark Zuckerberg, highlighted the role of AI-powered tools such as Advantage+ Shopping and Advantage+ App Campaigns in driving revenue growth. These tools have seen their revenue more than double since last year, contributing significantly to the company’s overall performance.

Future of Meta AI and Advertising

While Meta is not currently working on search ads, Zuckerberg hinted at the potential for ads and paid content in Meta AI interactions in the future. This could include premium features and larger models, although these plans are still in the early stages of development.

Accelerated AI Investments

Meta is accelerating its investments in AI, with plans to spend between $35 million and $40 billion this year. The company has already seen tens of millions of users engage with its Meta AI assistant across Facebook, Instagram, WhatsApp, and Messenger.

Threads Outpaces X

Meta’s Threads platform has reached 150 million monthly active users, surpassing X. This growth has prompted Meta to consider launching ads on Threads later this year, further expanding its advertising reach.

Industry Implications

Meta’s strong advertising growth is a positive sign for the industry, with other tech giants like Google and Microsoft set to report their earnings soon. The performance of these companies will provide further insights into the health of the advertising market.

Sources

• Meta ad revenue jumps 27% in Q1 2024, Search Engine Land.