Meta raises the average price of its ads by 14% as advertising on Facebook and Instagram drives its revenue – Revista Merca2.0

Subscribe to Merca2.0 and access more than 3,500 exclusive articles for subscribers. Click HereSubscribe to Merca2.0. Click HereMeta Platforms, the company led by Mark Zuckerberg and owner of Facebook, Instagram, and WhatsApp, recorded a 14% increase in the average price per ad during the third quarter of 2026, while its advertising revenue rose 26% year over year. According to the financial report released on October 21, 2026, Meta generated total revenue of $64.601 billion between July and September, compared with $51.242 billion in the same period of 2025.READ ALSO. Mark Zuckerberg’s Meta increases revenue by 26%, but legal disputes drive expenses up 68% and reduce operating income by 37%Of that amount, $63.061 billion came from advertising, representing approximately 97.6% of the company’s total revenue.The growth of Meta’s advertising business was driven by two factors: a 10% year-over-year increase in ad impressions and a 14% rise in the average price per ad.READ ALSO. Netflix increases profits by nearly 44% in 2026 but faces new pressure to prove advertising can sustain its growthSusan Li, Meta’s Chief Financial Officer, explained during the earnings call with investors that the increase in the average price per ad was related to improvements in advertising performance and more favorable macroeconomic conditions compared with the third quarter of 2025.The company also highlighted that user growth, increased content consumption, and optimizations in the number of ads displayed contributed to the rise in impressions.However, performance varied across regions. In the United States and Canada, the average price per ad increased 23% year over year, while in Europe it rose 10%. Meanwhile, in Asia-Pacific, the increase was just 1%, compared with the rest of the world, where advertising prices climbed 24%.One of Meta’s main growth drivers continues to be the integration of artificial intelligence into its advertising systems.The company reported that improvements to its GEM model generated a 9.6% increase in ad conversions for apps and a 1.7% increase in off-platform conversion campaigns within the evaluated rollouts.Additionally, updates to Andromeda, its ad retrieval system, boosted conversions on Facebook by 1.4%.Another tool, Meta Generative Recommender, helped increase conversions by approximately 2% in specific segments of Facebook Feed.The report also reveals that nearly 10 million advertisers used at least one of Meta’s generative artificial intelligence tools during the third quarter.Adoption of its video generation features increased 25% compared with the previous quarter.Meta also reported that advertisers who followed recommendations from its AI business assistant achieved nearly 5% more conversions while maintaining the same cost per conversion, compared with similar advertisers who did not adopt these recommendations.The creator advertising business also recorded significant growth. Partnership Ads increased more than 97% year over year and surpassed an annualized revenue run rate of $15 billion.Despite its advertising growth, Meta faces financial pressures stemming from higher technology and legal expenses.During the third quarter, its expenses increased 68% to $51.613 billion, while operating income declined 37%.Nevertheless, the company maintains a positive outlook for the end of 2026 and projects total revenue of between $73 billion and $76 billion during the fourth quarter.The results show that advertising remains Meta’s primary financial engine, while Zuckerberg continues investing in artificial intelligence to improve the monetization of Facebook and Instagram and develop new revenue streams.  Cancela en cualquier momento Acceso exclusivo a rankings y radiografías. Análisis profundos y casos de estudio de éxito. Historial de la revista impresa en formato digital. ¡Disfruta de lo mejor del marketing sin costo alguno por un mes! 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No spam.Check your email to confirm.© 2024 MERCA2.0 MEDIA GROUPOne of the main growth drivers for Meta continues to be the integration of artificial intelligence into its advertising systemsDunkin’s new holiday menu will be available this November, bringing back two fan-favorite flavors along with a new festive designThe data suggests that artificial intelligence applied to marketing is beginning to move beyond its purely experimental phaseDuring Best Buy’s DoorBOOsters event, shoppers can take advantage of a variety of deals throughout the holiday season© Copyright 2017 MERCADOTECNIA PUBLICIDAD MARKETING NOTICIAS | Revista Merca2.0 – All Rights Reserved – The total or partial reproduction of the contents of this site is prohibited without the written authorization of Grupo de Comunicación Katedra S.A. de C.V. Privacy Policy (Spanish)Usamos cookies para ofrecerte la mejor experiencia en nuestra web.You can find out more about which cookies we are using or switch them off in settings.Esta web utiliza cookies para que podamos ofrecerte la mejor experiencia de usuario posible. 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