Meta has paused Advertisers Pitching on Metaverse

By Srikanth
4 Min Read
Meta has paused Advertisers Pitching on Metaverse 1

Meta has not stopped its plans towards the Metaverse vision , Just a few months ago, Meta CEO Mark Zuckerberg was still so convinced that The Metaverse would be the next step for the internet that the idea alone justified the countless billions of dollars the company had already spent on it and promised to spend even more in the future.

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Meta is no longer pitching the metaverse in conversations with its advertisers and is instead trying to get them to back its Tik Tok-a-like short-form videos and its AI tools. That’s in stark contrast to last year, where every second word out of Zuckerberg’s mouth was ‘metaverse,’ in what he was expecting to be the future of the internet.
The company is reportedly offering discounts in the event that a certain amount of money is spent on Reels, per The Information. One ad executive whose firm spends hundreds of millions with Meta told The Information that this discount was unusually large.

Aside from pushing the adoption of Reels, Meta is touting its host of AI tools for advertisers, such as Advantage+, a program introduced last year that uses machine learning to deliver targeted ads across Meta’s social platforms.

Meta has been turning away from the metaverse as part of the company’s “Year of Efficiency,” which has seen the firm lay off more than 20,000 employees over the last six months. Therefore it is also investing in generative AI tools that can assist in creating marketing campaigns, per The Information. One Meta employee told the publication these types of investments could mean short-term gains for the company, which has been facing pressure amid cost cutting.

Meta has been pushing Reels and AI tools in meetings with advertisers.

Reports indicate that Meta has stopped pitching advertisers on the metaverse. More than a dozen open source industry bodies have published an open letter asking the European Commission to reconsider aspects of its proposed Cyber Resilience Act.

The organizations believe that the Act will have a “chilling effect” on open source software development if implemented in its current form.

The organizations include the Eclipse Foundation and Linux Foundation ..

 Mark Zuckerberg’s final statement on Metaverse :

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.

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