ROAS < 100%? Meta’s AI Strategy and the Future of Advertising
When Mark Zuckerberg announced that agency services will be fully replaced by AI, the industry reacted with a mix of surprise and denial. But the truth is: this was not a sudden attack on agencies. It is simply the next logical step in a platform strategy that Meta has been pursuing for years.
It’s Not War - It’s Platform Economics
Meta doesn’t compete with agencies out of ideology. It’s about capturing more of the value chain. By automating campaign management, optimization, and creative delivery with AI, the platform steadily moves margins from advertisers and agencies into its own pocket.
Especially in commerce and app marketing, this shift is already visible:
AI-based campaign formats reduce transparency for agencies and advertisers.
Black-box optimization makes independent strategy difficult.
Margins that once fueled agency services now stay with the platform.
The ROAS Dilemma
Return on Ad Spend (ROAS) is under pressure. For many advertisers, performance inside Meta’s ecosystem has fallen below sustainable levels and the lack of transparency makes it hard to understand why.
It’s a vicious cycle:
The more advertisers rely on Meta’s automated systems, the less control they retain.
The longer they stay inside the black box, the harder it becomes to step outside.
A European Wake-Up Call
From a European perspective, this development is more than a tactical challenge, it’s a strategic necessity to rethink the ecosystem.
If advertising-funded media, advertisers, and agencies want to maintain independence, they need strong, local alternatives:
Built in Europe, for Europe.
With transparent technology stacks.
Supporting diversity and competition in digital advertising.
Otherwise, the balance of power will shift even further towards a handful of global platforms.
Why Supporting Alternatives Is Strategic, Not Optional
It is tempting to see support for alternative platforms as “nice to have.” But in reality, it’s a matter of strategic survival. Without independent AdTech and media ecosystems, advertisers and agencies will lose leverage, data, and negotiating power.
Investors, regulators, and industry leaders must align: supporting alternatives is not optional – it is the foundation for a balanced and innovative advertising market.
Key Takeaway
Meta’s AI-driven strategy isn’t just about efficiency. It’s about consolidating margins and deepening dependency.
For advertisers, agencies, and European media players, the response must be clear:
Invest in diversity, strengthen independent AdTech, and reduce overreliance on black-box ecosystems.
