THE DEATH OF MAD MEN

(META), (NFLX), (NKE), (SBUX), (GOOGL), (AMZN)

Last month, while visiting my daughter at UC Berkeley, I watched her roommate launch a digital blitzkrieg for her grandma’s cookie business using nothing but an iPhone, a $50 budget, and AI tools that would’ve made Don Draper weep into his Old Fashioned.

Within hours, AI had cranked out three slick video ads, sniffed out 2,847 sugar-craving locals within a 15-mile radius, and was delivering a 4.2x return on ad spend. Madison Avenue? That would’ve taken six weeks and a $50,000 tab (not counting the catered lunches).

That’s when the penny dropped: Meta Platforms (META) isn’t a social media company anymore. They’re building the world’s first fully automated advertising agency, and they’re doing it with ruthless efficiency. 

As for the traditional ad agencies? They’re now the candle makers after Edison got to work.

Here’s how this machine actually works. Meta’s AI is like a digital sommelier, except instead of wine pairings, it matches ads with eyeballs. And it never forgets a taste. It remembers every click, pause, scroll, and “meh” face from 3.43 billion users, refining its pitch like a stand-up comic working toward a Netflix (NFLX) special.

Compare that to traditional advertising, which resembles a shotgun blast: noisy, expensive, and mostly guesswork. Meta’s AI, on the other hand, is a laser-guided missile that adjusts in real-time for user mood, weather, and probably what you had for breakfast. 

But here’s the kicker: it’s not just targeting anymore. The AI is now crafting the ads itself.

Which brings me to Meta’s master plan. By 2026, they’re planning to fully automate ad creation and targeting — a natural evolution following their 2022 launch of Advantage+ campaigns, which already handle most media buying and creative optimization. 

Picture your local cupcake shop uploading a photo and a budget, and Meta’s AI spits out a full campaign, including videos, captions, and audience segments, faster than you can say “crème brûlée.”

Now scale that up. Every bakery, yoga studio, and Etsy knitter on Earth suddenly gets Madison Avenue-quality campaigns. 

Small businesses using Meta’s AI automation can expect to save 10–17% on core ad costs, with added gains in efficiency and return on ad spend. 

Translation? Advanced digital advertising is no longer just a Fortune 500 playground. The florist down the street just got superpowers.

This is where Wall Street completely misses the boat. Meta earns 97% of its $160 billion annual revenue from advertising, yet analysts are calling for a measly 7% EPS growth — the same crowd who probably thought the iPhone was a fad. Meanwhile, Meta just delivered 37% EPS growth in Q1 after a blockbuster 60% year in 2023.

Here’s what these spreadsheet warriors don’t grasp: Meta’s AI revolution creates twin profit engines. 

First, it democratizes slick advertising for millions of small businesses previously priced out of the game. 

Second, it forces big brands to bid more aggressively just to stay visible as competition explodes. When Nike (NKE) and Starbucks (SBUX) suddenly have to outbid every mom-and-pop shop for eyeball time, ad prices go through the roof.

The numbers tell the real story. Meta’s got an 18.4% annual revenue growth rate with EPS chugging along at nearly 30%. 

They’re dropping $64 to $72 billion this year alone, most of it into AI infrastructure that will power this advertising revolution. 

And here’s the beautiful part: Meta isn’t just participating in the attention economy anymore. They’re building the tollbooth, the road, and the map app.

Sure, Google (GOOGL) and Amazon (AMZN) are throwing money at AI like sailors on shore leave, but Meta has the holy trinity: the eyeballs, the engagement, and the tools to turn a grainy cupcake photo into an irresistible buying impulse. 

They don’t just know what you want. They know exactly how you want to be sold to.

So while Wall Street sleeps and traditional agencies polish their awards, the revolution is quietly happening in college dorm rooms with AI ad generators and plates of homemade cookies. Don Draper once said, “If you don’t like what’s being said, change the conversation.” 

Meta’s AI isn’t just changing the conversation. It’s firing the creative director, automating the pitch meeting, and locking down every prime-time slot while the old Mad Men are still arguing about font choices.

Who knew the death of Madison Avenue would taste so sweet?