The company’s Advantage+ platform, which uses artificial intelligence to optimize ad placements and factor into return on ad spend (ROAS), has been providing strong results.
According to Deutsche Bank analysts, they saw approximately sequential growth in ad revenue in Q2 23 and expected stronger results in Q3 23. This rebound follows earlier headwinds, including temporary declines in Chinese e-commerce ad spending caused by trade tensions. However, were beginning to thaw by mid-May, and ad revenues began to recover.
Analysts are also looking at the new monetization model introduced this quarter. According to Evercore, WhatsApp could have more than $10 billion in annual ad revenue in 2028, which would be a meaningful contribution to Meta’s portfolio.
