Meta’s AI bets supercharge marketing efficiency — and costs

Core Insights - Meta's revenue grew 26% year over year to $51.24 billion in Q3, surpassing analyst expectations, driven by advancements in AI that enhance user engagement and ad performance [2][3] - The annual revenue run rate for Meta's AI-powered ad solutions has exceeded $60 billion, indicating strong adoption from brands [3][5] - The number of advertisers utilizing Meta's video-generation tools increased by 20% from Q2 2025, reflecting the effectiveness of its advertising innovations [3][5] Financial Performance - Meta's Q3 revenue reached $51.24 billion, marking a 26% increase year over year [2] - The average price-per-ad across Meta's portfolio rose by 10% year over year in Q3, driven by increased demand [5] - Meta's revised capital expenditure outlook for the full year is between $70 billion and $72 billion [5] Advertising Innovations - Meta's AI advancements have improved ad tools, targeting, and the performance of its short-form video business, contributing to its revenue growth [3] - The company envisions a future where AI automates most advertising processes, allowing marketers to focus on campaign objectives and financial details [4] - Instagram Reels has become a significant revenue driver with an annual revenue run rate exceeding $50 billion [5]