Meta Platforms

Ring 1 Core AI revenue estimate for Q3 2024. Total revenue: $40,589M (FoA: $40,319M, RL: $270M). Ad impressions +7% YoY, avg price per ad +11% YoY. Price/ad growth now exceeding impression growth, indicating AI-driven ad quality improvements are the primary revenue driver. Zuckerberg stated on Q3 2024 earnings call that AI-recommended content accounted for about 20% of content in Facebook feed and over 30% of Instagram feed content. Advantage+ suite reached ~3M advertisers. Generative AI creative tools used by over 1M advertisers generating 15M+ ads per month. Meta AI assistant reached ~500M monthly active users but with minimal direct monetization. Estimate: ~7% of total revenue ($2.84B) from Ring 1 AI, reflecting growing Advantage+ penetration, Reels AI recommendation monetization improvements, and AI creative tools. Still conservative because the bulk of ad targeting improvements are evolutionary (Ring 2) rather than revolutionary (Ring 1).