TL;DR

Advertisers have reported that Meta's AI-driven ad features sometimes swapped high-performing ads for AI-generated imagery, producing odd or misleading outputs. Brands say some AI toggles appear to auto-enable, forcing extra manual checks and prompting refunds and new third-party tools.

What happened

Multiple marketers told Business Insider that Meta's suite of AI ad tools—branded as Advantage+ and accessible through settings like "test new creative features" and "automatic adjustments"—has been replacing existing campaign creatives with AI-generated images. Examples include a clothing brand, True Classic, whose top-performing creative of a millennial man was reportedly replaced with a synthetic image of an elderly woman; that ad ran for three days before customers alerted the brand. Other reported cases include a footwear ad with a model's leg distorted and an e-bike ad with a car trunk appearing to fly through clouds. Several advertisers say those AI-related toggles sometimes revert to "on" even after being switched off, causing unintended spend on generated ads. Agencies managing large ad budgets said they now schedule frequent manual audits, and at least one marketing consultant reported issuing customer refunds after AI-generated imagery misrepresented products.

Why it matters

  • AI-generated creatives can alter brand messaging and customer perception if they replace vetted ads without oversight.
  • Hidden or auto-enabled settings risk ad spend going to unapproved assets and require additional manual labor to monitor.
  • Misleading or visually flawed AI images can lead to customer complaints and returned sales, affecting retailer relationships.
  • The situation highlights tensions between automation promises and advertisers' desire for predictable control over creative assets.

Key facts

  • Advertisers identified Advantage+ creative tools and account toggles labeled "test new creative features" and "automatic adjustments" as sources of the automatic swaps.
  • True Classic's head of marketing, Bryan Cano, said an AI-generated image replaced the brand's top-performing ad and ran for three days before customers reported it.
  • Kirruna, a European shoe brand, reported an AI-generated ad with a distorted model leg and issued two customer refunds related to AI-created imagery.
  • Lectric caught an AI-generated e-bike ad showing a car trunk flying through clouds and chose not to run it; the company said it disables AI enhancements.
  • Some advertisers reported that AI-related toggles sometimes switched themselves back on after being turned off.
  • Flat Circle, an agency managing about $100 million a year in Meta ad spend, schedules two to three mornings weekly to manually verify AI features are off, taking up to an hour per account.
  • Jonas Vonk, frustrated by hidden settings, launched a startup called AdsFlow to surface and manage Meta's ad toggles more clearly for advertisers.
  • A Meta spokesperson said many advertisers see value and improved performance using Advantage+ and noted that advertisers using full image generation can review images before running ads.

What to watch next

  • Whether Meta updates its UI or settings to prevent AI toggles from auto-enabling and to make controls more discoverable (not confirmed in the source).
  • If Meta changes its preview workflow so generated images are more clearly flagged or require explicit advertiser approval before serving (not confirmed in the source).
  • Demand for third-party tools and auditing services like AdsFlow to surface hidden toggles and prevent unintended AI creative use.

Quick glossary

  • Advantage+: Meta's brand name for a suite of AI-powered advertising products designed to automate creative and campaign optimizations.
  • Generative AI: A class of artificial intelligence systems that can produce new content—such as images or text—based on learned patterns from training data.
  • Ad creative: The visual and textual elements of an advertisement used to communicate a brand message and drive engagement.
  • Campaign preview: A feature that lets advertisers view how ad variants will appear before they go live.
  • Automatic adjustments: Account-level settings that allow a platform to change campaign elements automatically, often intended to improve performance.

Reader FAQ

Did Meta comment on these incidents?
A Meta spokesperson said many advertisers find value in Advantage+ and that advertisers using full image generation can review generated images before running ads.

Can advertisers opt out of AI-generated creatives?
Advertisers can toggle settings such as "test new creative features" and "automatic adjustments," and there are Advantage+ creative controls, but several advertisers reported those toggles sometimes re-enabled themselves.

Have brands reported real harm from these AI-generated ads?
Yes. Brands reported customer complaints, at least two refunds issued by a footwear brand, and concerns about damaging retailer relationships.

Is this a widespread problem among all Meta advertisers?
Multiple advertisers reported incidents, and Meta said millions of advertisers are using Advantage+ and seeing improved performance; the article does not quantify how widespread problematic swaps are.

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