Measure Of A Meta Man
Connor Hayes, Meta’s VP of product for generative AI, recently spoke with the Financial Times about its long-term goal to create AI-generated “characters” – as in fake account personas – on Facebook and Instagram.
Until recently, such a thing would have been an infraction of Meta’s terms of service.
The goal is to spur authentic-seeming engagement that stimulates organic posts and comments – but it’s a turn-off to advertisers and users alike.
Case in point: Bluesky users recently latched onto an AI-generated Instagram account from September 2023 named “Liv.” Before it was deleted by Meta, “Liv,” which purported to be a queer Black mother of two (two what?), spit out contradictory backstories and posted images of AI-generated charity work.
Apparently, Liv’s existence was an early experiment, Meta spokesperson Liz Sweeney tells 404 Media, and unrelated to the Financial Times piece. Some readers mistakenly believed FT was announcing a new AI product from Meta.
But although some people are clearly icked out by AI-generated account interactions, it’s not really a problem for Facebook and Instagram if the ire generates engagement. Users are posting about their angst and scouring the platform for comments from AI-generated bot profiles.
Advertisers, meanwhile, will have some icks of their own to deal with once Meta inevitably begins attributing ad impressions to these AI accounts.
Apple’s Hot Mic
Apple has agreed to pay a $95 million settlement to avoid a class action lawsuit over alleged privacy violations stemming from unauthorized access to “Hey, Siri” voice recordings. These recordings were used to trigger targeted ads.
Two plaintiffs maintain that ads were served for Air Jordan sneakers and Olive Garden based on audio picked up by the “Hey, Siri” feature, the Associated Press reports. Another plaintiff said they saw ads for a surgical procedure based on information pulled from a private conversation with their health provider.
In agreeing to settle, Apple maintains its innocence.
The root of the problem is that iPhone owners often mistakenly activate Siri, either by saying something that sounds like “Siri” or tapping a button in error. From there, Apple begins recording and storing keywords, such as when someone mentions a brand by name.
This is particularly ironic considering that Facebook – always the evil foil to Apple’s privacy messaging – has for years been the subject of a widespread conspiracy theory that it eavesdrops on smartphone mics to serve ads.
Shop Big
The biggest three retailers in the US – Walmart, Amazon and Costco (sorry, Target) – accounted for 57% of all retail sales growth over the past decade and are poised to pull even further ahead of their competitors, The Wall Street Journal reports.
Antitrust plays a role here. Notably, Kroger and Albertsons were recently forced to abandon their proposed merger and, the fact is, retailers need scale to compete.
For example, pure-play grocery stores are struggling. Walmart, Target and Costco have successfully poached shoppers from grocers to their larger superstores. Walmart has also successfully poached dollar store franchise shoppers. Meanwhile, national chains, including The Container Store, Party City and Big Lots, folded in Q4. Macy’s, once the gem of US department stores, has a market cap of only $4.6 billion, making it a takeover target.
Another factor is memberships. Amazon Prime, Walmart+ and Costco have high retention and large subscriber bases.
Members are strongly incentivized to consolidate their shopping through loyalty programs rather than visiting a standalone grocer, department store and specialty store.
But Wait! There’s More!
Advertising’s dealmakers are gearing up for a 2025 surge. [Digiday]
Facebook and Instagram ads are selling gun silencers disguised as car parts. [WIRED]
Online content creators are suing Honey over the browser extension’s allegedly fraudulent affiliate marketing practices. [Business Insider]
Speaking of lawsuits, AI company Anthropic has reached an agreement with music publishers on one of its (many) copyright disputes. [The Verge]
TikTok’s head of ad sales in North America, Sameer Singh, is leaving. [Ad Age]
You’re Hired
The parent company of indie agency Horizon Media appoints IBM vet Bob Lord as its first-ever president. [Ad Age]
Canela Media hires Philippe Guelton as global president. [Variety]
