Tech Giants See Ad Rebound as AI Boosts Targeting and Retailers Ramp Up for Holidays

Google, Meta, and Snap exceeded revenue expectations this quarter, signaling a rebound in digital advertising spending. Their ad businesses saw positive growth metrics.

AI tools are helping advertisers find their target audiences efficiently and at lower costs. Companies like Google and Meta are investing heavily in AI for ad targeting and measurement.

Retail was a strong ad spending category this quarter as retailers prepare for the holidays. Larger platforms like Google and Meta are seen as biggest beneficiaries.

Meta is rolling out new AI-powered ad campaign creation tools and pointed to softness in ad spend in Q4 related to geopolitical conflicts.

Research firms have raised their forecasts for U.S. ad spending growth next year, projecting over 5% growth overall and close to 10% for digital ads.