Advertisers just won’t quit Meta.
The company’s ad revenue increased 24% year over year to $58.1 billion in the company’s most recent quarter, Meta CFO Susan Li told investors Wednesday during the company’s earnings call.
That includes an 18% increase YoY in ad impressions delivered across Meta’s family of apps in Q4, and 12% in 2025, according to the company’s earnings report. Average price per ad also increased slightly— 6% YoY in the quarter, and 9% for FY25, a change Li attributed to increased advertiser demand.
Meta’s overall revenue grew 24% in the quarter to $59.9 billion and $201 billion for the full year 2025, up 22% YoY. That was likely helped by the growth in daily active people across its family of apps, which averaged nearly 3.6 billion in December, a 7% YoY increase.
“For the next couple of years ads are going to be, by far, the most important driver of growth in our business,” Mark Zuckerberg, founder, chairman, and CEO of Meta, said on the s earnings call.
AI, oh my: Meta executives unsurprisingly dedicated time to discussing Meta’s AI investments as the company has poured billions into the tech as it looks to keep up with competitors like Google, OpenAI, and Anthropic. AI is getting infused into Meta’s apps, too: Reels made in Meta’s AI-enhanced Edits app now account for nearly 10% of the Reels that users view each day, an almost tripling of the figure from the previous quarter, the company said, and Meta AI also saw its number of daily active people creating media triple YoY in the quarter.
The company is rolling out its AI business assistant to more advertisers over the next several months after first testing the tool with advertisers in Q4, Li said. Click-to-message-ads, which includes the widely adopted website-to-message apps that send users to brand sites for information, grew US revenue 50% YoY in Q4. Paid business messaging in WhatsApp crossed a $2 billion annual run rate in the quarter. The company plans to expand its business AI offerings to more markets soon, Li said.
“We expect the set of investments we’re making in 2026 will enable us to drive further gains as we continue to integrate AI across all layers of the marketing and customer engagement funnel,” she said.
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On the ad-tech side, providing more compute to Meta’s AI models to power ads and ranking recommendations is a focus, Li said, as is connecting recommendation systems and large language models to improve ad quality. Meta is also fine-tuning ad load, either increasing ad loads or finding ways to grow incremental conversions within the same ad-load level by predicting ad interest from users. That focus led Meta to “redistribute ads across users and sessions” on Facebook in the second half of 2025, growing revenue impact almost four times more than Facebook ad-load increases, Li said.
Unspool the thread: Another area of focus is growing some of Meta’s newer ad offerings in Threads and WhatsApp. Meta is continuing to expand Threads ads into more countries, including the UK, and on the WhatsApp side, Meta plans to complete Status ads through 2026, Li said.
Despite the growth in Meta’s ads business, it’s seeing some headwinds for its ads business in Europe, Li said. Meta recently began offering users the ability to share less data—and thus see less-personalized ads—after EU regulators fined the company in April for violating the Digital Markets Act.
Reel ’em in: Watch time on Instagram Reels in the US increased more than 30% YoY in the quarter, which Li said was due to ranking and product improvements designed to boost engagement. Similar optimizations on Facebook grew views of organic feed and video posts 7% in Q4, while AI model consolidation on Facebook “drove a 12% increase in ad quality” in the quarter; the company said.
Fashion, darling: Meta’s also investing heavily in its wearable gear, which has been a point of focus for several years. In February, it’s planning to run a Super Bowl ad for its Oakley AI glasses to promote them to athletes. Zuckerberg said that sales of the company’s glasses “more than tripled” in 2025.
“I think that we’re in a moment similar to when smartphones arrived, and it was clearly only a matter of time until all those flip phones became smartphones,” he said. “It’s hard to imagine a world in several years where most glasses that people wear aren’t AI glasses.”
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