Meta CEO Mark Zuckerberg has credited advancements in artificial intelligence for driving audience engagement and retention on the company’s social networks. According to Meta’s financial report for Q3 2024, user time on Facebook increased by 8%, while Instagram saw a 6% rise. Enhanced AI-based recommendation algorithms, particularly in video content and personalized news feeds, have played a crucial role in this improvement.
Beyond audience metrics, AI is transforming user interactions on Meta’s platforms. Over 500 million people per month now use Meta’s AI-driven features, and in the past month alone, more than a million advertisers leveraged generative AI tools. These tools helped create over 15 million ads, leading to a 7% increase in ad conversion rates.
Steady Growth in User Base and Engagement
Meta’s user base continues to grow, with daily active users across its applications (DAP) up by 5% to 3.29 billion. Additionally, the monthly active audience (MAP) rose by 6% to 3.96 billion, indicating consistent user engagement across Meta’s suite of platforms.
The company’s strong Q3 financial results exceeded analysts’ forecasts. Meta reported earnings of $6.03 per share, surpassing the expected $5.25. Revenue reached $40.59 billion, outpacing the forecasted $40.29 billion. Total expenses for the quarter amounted to $23.2 billion, with capital investments at $9.2 billion. In response to these figures, Meta has adjusted its full-year expense outlook to between $96 billion and $98 billion. However, it’s anticipated that infrastructure costs may continue to rise as Meta expands its data processing and storage capacities, notes NIXsolutions.
We’ll keep you updated on how these developments unfold in future quarters, especially as AI continues to drive growth across Meta’s platforms.