Meta Platforms Inc. META is reportedly seeing its ad business thrive due to older users, despite its attempts to draw in Gen Z. These older users have a higher likelihood of making purchases or signing up for services.
What Happened: Internal documents from Meta’s recent antitrust trial with the Federal Trade Commission showed that older users see more ads because of their higher purchasing power. The documents were part of a Barclays analysis shared with Business Insider.
The report indicates that Facebook users aged 45–54 encountered the highest ad volume at 22%, followed by those aged 55+ and 35–44. Younger users, particularly those aged 18–24, saw notably fewer ads, experiencing roughly half the ad exposure of older users.
Barclays analysts indicated that the shift to Stories and Reels, where ad formats are still developing, or a strategic reaction to heightened competition from TikTok, could explain the trend. Additionally, the report highlighted that Meta has reduced ad exposure for younger users since 2021.
The Mark Zuckerberg-led company employs dynamic ad load technology to tailor ad frequency based on user behavior and demographics. Its machine learning models assess each user’s value to advertisers, enabling revenue growth without increasing total ad volume. While targeting Gen Z, Meta’s business strategy focuses on the demographic currently generating its revenue, which is Gen X.
Why It Matters: Meta’s ad business has been a topic of interest recently. The company’s first-quarter results in 2025 were better than expected, with advertising driving revenue. Ad impressions increased by 5%, and the average price per ad rose by 10% year-over-year.
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Furthermore, Meta is set to revolutionize the advertising industry by introducing a fully automated ad creation system powered by artificial intelligence. The company plans to roll out this system, which will enable brands to design and target ads using AI, by the end of 2026.
These recent developments, along with the latest revelation about the age skew in Meta’s ad business, shed light on the company’s evolving advertising strategy and its focus on older, high-spending users.
Benzinga's Edge Rankings place Meta in the 86th percentile for quality and the 93rd percentile for growth, reflecting its strong performance in both areas. Check the detailed report here.
On a year-to-date basis, Meta stock climbed 15.82%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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