Why Meta Muse could become the world's most valuable ad business
The author argues consumer agents carry stronger intent than search boxes, so Muse can insert highly relevant sponsored slots and close transactions, yielding the highest-conversion ads without a fixed take rate.
I think $META Muse has a shot at becoming the most valuable advertising business in the world. Advertising is ultimately driven by conversion rates. A billboard has low conversion because it's irrelevant for most people passing by. TV a bit higher because you've got some demographic info. Facebook and Instagram are valuable because they know a lot about you. Amazon ads and Google ads are highly coupled with intent. Consumer agents have high intent because you tell them more than you'd tell a Google search box or an Amazon search box. It should allow Muse to add labelled sponsored slots that are highly relevant, and with Muse being able to complete the transaction for you seamlessly, that should be the highest conversion ad around. I don't think they'll charge a fixed % of transactions. It's been tried before (OpenAI's 4% on Instant Checkout, Meta's own 5% on Shops) and hasn't worked, and it makes it seem more expensive. It'll start with ad slots and low bids that will make agent advertising massively high ROI until more merchants come on board to bid that up. One advantage Meta has over others is they already have the infrastructure and merchants to support that.