With over 3 billion people using Facebook and Instagram, Meta Platforms has built a powerhouse advertising business. It is widening its competitive moat by using AI-powered ad tools to deliver better recommendations and more effective ad targeting for advertisers. This is increasing return on ad spending and, in turn, driving higher ad pricing, which helped drive a 26% year-over-year increase in the company's revenue last quarter.
OpenAI is set to wade into the advertising business this year, but its move to finally monetize ChatGPT with ad dollars may have come a touch too late. ChatGPT's 2022 launch inaugurated the current generative era and made the app a touchstone for the entire sector. But OpenAI's head start has since been eroded by rivals, the greatest of which has both momentum and experience building ad businesses.
TV makers need to get more lifetime value from a customer after selling a unit. With more competition in the market, companies often need to sell TVs at a discounted price with lower margins. The best way for them to recover the money is by striking partnerships with channels, streaming services, and advertisers. This is the core thesis around Barcelona-based Titan OS, which provides a smart TV operating system to TV makers with a promise to get better lifetime value out of the customer.
Big hero images highlighting select TV shows and movies, a row of app icons, a bunch of additional content recommendations: At first glance, Meta's new Horizon TV app looks a lot like the homescreen of your typical smart TV. Something Samsung, Google, or Amazon would ship on their devices. Except Horizon TV isn't running on a TV or streaming stick, but on the company's Meta Quest headsets. Unveiled at Meta Connect last month, the app is a big part of Meta's push to attract older, less gaming-focused audiences to VR - a push that also includes a partnership with James Cameron, and investments into sports, and other types of leanback entertainment content.
MrBeast previously paid retail prices for many products, including beverages, gym equipment, and dozens of Teslas. Under its new CEO, Jeffrey Housenbold, Beast Industries is seeking to get the products featured in videos for free or better, figuring lots of brands will gladly do so to appear alongside the world's most famous YouTuber. The effort is being aided by an eight-person brand partnership team.
