Meta Tests New Automated Tools For Shops Ads, Implements Required In-App Checkouts

Shortly after CEO Mark Zuckerberg mentioned the term “AI” 27 times in Meta’s first-quarter earnings call, the company announced a further investment in AI ad targeting through Shops and its Meta Advantage suite.

Next year, it will require Shops to integrate checkouts directly on Facebook and Instagram, not a third-party site.

Meta says that according to its tests, Shops using Advantage+ with checkout enabled in-app outperform website-only campaigns with a cost per action and return on ad-spend improvement of 20% on average.

Meta plans to remove the option for brands to host Shops with external checkouts starting April 24 of next year. Brands advertising on Facebook and Instagram will have to decide between running fully enabled Shops or no Shops ads at all.

Businesses that choose not to add in-app checkout for Shops ads can continue to connect with customers through personalized ads, Reels and business messaging, but will no longer be able to host a Shop on their Facebook or Instagram page, or use product tagging in posts beginning on August 10, 2023.

Meta will be upgrading its in-stream shopping tools including ratings and reviews, buyer email opt-in and dynamic product pages.

The company will also move Shops ads to its automated ads Advantage portfolio, attempting to introduce Shops ads to “thousands of new US businesses” to make it easier for “people to purchase directly from ads."

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