Mark Zuckerberg was extremely excited about the metaverse‘s potential around this time last year. He even changed the name of his business to reflect it But it looks like things are changing now. His organization, Meta, is attempting to rejuvenate virtual universes and is losing billions of dollars all the while. Their enthusiasm for the metaverse has diminished as a result.
A new report states that Meta is no longer attempting to market the metaverse to advertisers. They are instead concentrating on highlighting their AI tools and promoting their short-form video product, Reels. If advertisers spend a certain amount on Reels, Meta is even providing discounts of up to 25% According to one advertising executive, this is a substantial discount.
Notwithstanding Reels, Meta is pushing its artificial intelligence instruments for sponsors. Using machine learning, they use a program called Advantage+ to deliver specialized advertisements across Meta’s social platforms. Additionally, they are making investments in generative AI tools for marketing campaigns.
According to The Information, Meta is also investing in generative AI tools that can help with marketing campaigns. According to an employee of Meta, these kinds of investments could result in short-term gains for the business which has been under pressure due to cost reductions.
As part of its “Year of Efficiency” initiative, Meta has turned their attention away from the metaverse. Over the past six months, they have fired more than 20,000 workers. Zuckerberg was committed to the metaverse in October of last year, but his company is now under pressure to become more economically efficient.
In October of last year, Zuckerberg refused to relinquish his commitment to the metaverse, claiming that spending on Reality Labs, Meta’s division devoted to transforming the metaverse into a set of products, would only rise. However, presently Reality Labs, which has lost billions of dollars, is being constrained to execute all the more financially.
In over 2,000 words, Zuckerberg only mentioned the metaverse twice in a recent note to employees. He concentrated more on AI development, which is the “single largest investment” of the company. Executives mentioned AI six times on a February call about Meta’s full-year earnings in 2022, but they didn’t mention the metaverse at all.
Meta declined to discuss their advertising strategy or metaverse goals.