Meta’s Robotic Advertising

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Happy Tuesday, TFP. Just how YouTube-obsessed is MrBeast, the most-followed creator on Earth? He’s borrowing money from his mom to help pay for his wedding. If you’re thinking, “Isn’t this dude really, really rich?” then A) you’re normal, and B) the answer is yes. His explanation is that he reinvests almost all of his money — a forecasted revenue of $899 million this year — back into making more videos. In other words, he spends an exorbitant amount to stay on top.

Meta will reportedly allow brands to create and target ads to users on the company’s platforms solely using AI by the end of next year.

The Big Picture: Advertising represents a whopping 97% of revenue for Meta, so any changes to it is a massive deal for the entire digital-advertising ecosystem. Coupled with Meta’s aggressive push into AI, the combination of both represents a major paradigm shift for the tech giant, where its biggest investment fuels its biggest revenue stream.

Behind the Code: Will Meta’s fully-AI advertising represent the zenith of targeted marketing or the beginning of social media’s AI-slop era?

The Future: Unsurprisingly, the news sent Meta’s stock up and those of ad agencies down — Meta was up 3%, while WPP, Omnicom, and Interpublic were down between 2% and 4%. But there’s a lot of big-picture questions lingering from the news — will big brands want Meta to have so much control over marketing creative just to save money? And will Meta be building unique AI models for each brand that signs up for the feature to protect brands’ IP? Like AI at large, there will be a lot of kinks to work out.

Prediction: While small- and medium-sized businesses may opt for fully-AI advertising, big brands may double down on the use of human creativity to show off that they’re a premium company. Who knew using people was a luxury?

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When Gen Z goes out for a night on the town, they generally no longer keep open a bar tab. Instead, they close out after every transaction, no matter how many times they go up to buy a drink. That’s having a ripple effect across the nightlife economy.

Why It Hits: Gen Z is drinking less than previous generations, while also being more money-conscious than their older cohorts (although that doesn’t always translate into them actually spending less). Those characteristics are fueling some changes at the till that impact not just a bar’s bottom line, but the entire culture of going out with friends.

Between the Drinks: Gone are the days of your buddy proclaiming, “Next round’s on me!”

Closing Out: While closing out after each transaction only takes an extra minute for customers, that’s precious time bartenders need to serve others and keep drinks flowing, especially on a Friday or Saturday night. So, going through the whole payment process after each drink is slowing the whole operation down. That affects how many tips they receive that night.

Additionally, each transaction multiplies the number of credit-card transaction fees that bars have to pay — a typical $100 transaction done as one payment could lead to a $4 fee, while a $100 transaction done over the course of ten payments leads to a $7 fee. That’s money left on the table.

Prediction: To combat the operation slowdown and higher fees, some bars may start enforcing house payment rules that push Gen Z to learn some old-school bar etiquette.

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54.9% of you voted No in yesterday’s poll: Do you listen to Taylor Swift’s music?

“I think she’s very talented and has a great attitude. But I listen to older artists and music from the 60’s-70’s-80’s.”

“Could only recognize a couple of songs from the radio as hers. But I respect what she’s done — it’s impressive.”

“I just started listening in the last couple of years. I’m glad she won back her music.”

Let’s keep the conversation going. Join our Poll Of The Day newsletter, so your opinions can shine. Discover how your views line up with your peers’, check out cool insights, and have some fun. It’s data with personality.

🏈 3 Arts Entertainment is expanding into sports with the acquisition of A&A Management.

🎤 Rihanna has her first No. 1 single in nearly a decade with “Friend of Mine” from the upcoming Smurfs.

🎙️ Marc Maron is ending his iconic WTF With Marc Maron podcast after almost 16 years.

👕 Famed LOEWE designer Jonathan Anderson will be the first creative director of both Dior’s men and women’s lines since Christian Dior himself.

🧥 Norwegian outdoor label Helly Hansen has been purchased by Lee and Wrangle parent company Kontoor Brands for $900 million.

👖 Former Givenchy designer Matthew M. Williams is launching his own namesake menswear label.

📱 Twitch announced that it will soon roll out vertical-video livestreams to compete with TikTok.

💸 TikTok Shop is evolving into a platform where you need to pay for ads to drive engagement.

🫠 A creator’s “museum of the millennial” is trending on TikTok, which should make many of our readers feel old.