Meta Unveils AI Ad Features Built For Holiday Rush

Plus: IAB: 9 In 10 advertisers now use AI for video

Author

Avinash Duggempudi
August 27, 2025 • Estimated Reading Time: 6 minutes

ClickZ Digital Ad Platform News

Here's what's happening this week in the world of digital advertising platforms:
- Meta turns Reels and partnerships into shoppable, AI-driven ads.
- Macy’s plugs into Amazon’s ad stack for Q4 scale.
- Teikametrics automates Amazon and Walmart listings using ad data.
- IAB: AI already powers most video ad workflows.
- Meta taps Midjourney to boost visual generation quality.

⏱️How Nécessaire Outpaced Competitors With 47% More Revenue



Nécessaire went into Prime Day with proof that Meta and TikTok were quietly fueling Amazon sales, even when they showed up as “organic.”

Armed with that evidence, they increased spend and beat their peer group with 47% higher revenue. Most teams would’ve cut back and left millions on the table.

👉 Follow Fospha on LinkedIn for data-backed playbooks and real-world learnings from leading retail brands, so you can see exactly how the best are scaling profitably.

📌WEEKLY MUST-KNOWS

Meta rolled out holiday-focused AI ad tools, including creator marketplace filters, automatic “Show Products” merchandising in Reels and partnership ads, Flexible media placement expansion, and omnichannel ads. Early tests show 4% higher CTR and 3% higher conversions on auto‑merchandised partnership ads, 7% higher conversion rates for Reels in catalog carousels, and 23% lift from Flexible media. This raises the bar for video‑led commerce on Instagram and Facebook, impacting brands, creators, and retailers planning Q4.

Macy’s Media Network will pilot Amazon Retail Ads Service, letting advertisers buy and manage Macy’s sponsored products via the Amazon Ads console and APIs. The move simplifies cross‑retailer investments with Amazon’s targeting and measurement, while Macy’s cites dedicated systems and access controls to address data governance. Expect consolidation pressure in retail media ad tech ahead of Q4 as brands and agencies seek scale and unified workflows.

The IAB’s 2025 Digital Video Ad Spend & Strategy Report finds nearly 90% of advertisers use AI in video ads, with AI‑assisted creative expected to reach 40% of ads by 2026. AI is most used for audience tailoring, style iteration, and contextual relevance, accelerating versioning and testing cycles. Creative teams, media buyers, and analysts should expect faster feedback loops and new benchmarks for authenticity‑driven performance.

Instagram launched a Reels linking feature that prompts viewers to tap into a connected “next” Reel, enabling seamless, serialized stories. This should lift watch time and retention while simplifying sequential education, UGC series, and multi-part product demos. Creators and brand content teams can edit or remove links at any time.

🗣️ LEADING VOICES

The link below is an interactive guide on how to nail TikTok based on Jay Hunter & Catalina at Mary Ruth's, fantastic session at eTail™ Boston, where they discussed going from $1 to $40M in one year!

⚡QUICK READS

MRKT360 Rolls Out AI Fraud Protection For Ads: MRKT360 introduced AI‑driven fake lead detection across Google and Meta campaigns to protect budgets and improve signal quality feeding bidding algorithms.(More)

LinkedIn Leans Into B2B Creator Monetization: LinkedIn is expanding the B2B creator economy as a revenue stream, pointing to new sponsored content formats and performance inventory for high‑intent professional audiences.(More)

CVS Media Exchange Scales Health Shopper Targeting: CMX highlights omnichannel activation built on 90+ million ExtraCare members, underscoring loyalty data and measurable outcomes as retail media’s competitive edge.(More)

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