Morning!

Today’s issue dives into how social media teams can finally prove ROI, why Meta is pouring $600B into AI infrastructure, and how Reddit’s new interactive ads are reshaping engagement. Plus, quick hits on retail media’s rise, Google’s video push, and shifting consumer trust.

Meta has unveiled its Generative Ads Recommendation Model (GEM), an AI-driven system trained on massive data and GPU capacity that’s now 4x more efficient and 2x better at knowledge transfer than its previous models. GEM works alongside Meta’s “Lattice” ad-ranking engine and “Andromeda” personalization model to deliver more accurate, intent-driven targeting across the funnel — from awareness to conversion. Early results show advertisers using AI-powered ad options are already seeing notably stronger ROI and engagement Why it matters: Meta’s ad engine has evolved from data-driven to AI-supercharged, making its ecosystem harder to beat. As GEM automates more of the creative and targeting process, marketers will soon rely less on manual setup.

Google Merchant Center has rolled out “Creative Content”, a new feature that lets brands attach videos to their product listings across paid and organic placements. Videos can be pulled from TikTok, websites, or Product Studio, and are automatically synced with Google Ads asset libraries. The update also introduces AI-powered product mapping from YouTube, linking videos to the right products and boosting visibility. Why it matters: Video has officially entered Google’s product ecosystem. By merging SEO, ads, and video under one workflow, Google is turning Merchant Center into a full-funnel brand engine, helping marketers improve discovery and engagement directly from search.

New research from Info-Tech shows marketers still struggle to link social media activity to real business outcomes due to weak strategy, scattered KPIs, and resource gaps. Their “Level Up Your Social Media Game” blueprint proposes a two-phase approach: audit channels and performance, then rebuild a focused, KPI-driven plan that aligns social with clear business goals. Why it matters: Social can’t just be “vibes” anymore. Treating it as a performance channel, with audits, defined roles per platform, and ROI-focused tactics, is how teams secure budget, prove impact, and stop posting blindly into the void.

Reddit is rolling out Interactive Ads, a new format that lets brands create playable, participatory experiences directly in the feed. The feature debuts with Paramount’s The Running Man campaign, where users dodge drones to unlock an exclusive clip from star Glen Powell. Other testers include EA, Red Bull, and the Ad Council, using templates like quizzes and countdowns or full custom builds via Reddit’s creative studio KarmaLab. Why it matters: Reddit’s moving beyond static ads toward gamified, story-driven formats that boost engagement and top-of-funnel awareness. As brand visibility battles shift toward interactivity, platforms that blend participation with personalization will own the attention game.

Retail media is projected to overtake linear and streaming TV ad spend in 2026, reaching $196.7B, globally. The channel now accounts for 16% of all ad spend, driven by Amazon’s continued 15% annual growth. While expansion remains strong, growth rates are expected to slow to single digits by 2027. Why it matters: Retail media is becoming advertisers’ go-to performance channel, blending shopper data, closed-loop attribution, and commerce intent, something TV can’t match.

Meta plans to invest $600 billion in U.S. AI infrastructure by 2028, expanding data centers, connectivity projects, and workforce initiatives. The goal: accelerate its push toward “personal super-intelligence” and maintain America’s technological edge. The scale is massive, roughly $200B per year, surpassing the GDP of 136 countries. Beyond AI, Meta is positioning this investment as proof of its economic value to U.S. regulators amid ongoing antitrust scrutiny. Why it matters: Meta’s AI bet isn’t just about innovation, it’s political leverage. By framing its AI expansion as a boost to U.S. jobs and industry, the company is shoring up goodwill while cementing its role at the center of the next AI arms race.

New research from Wavemaker reveals a 12% trust gap between under-35s and older consumers, but the difference lies in what “trust” means. Over-35s trust ethically responsible brands like charities and pharmacies, while younger shoppers trust brands that deliver reliably - think Tesco or Prime. For Gen Z and millennials, trust is functional, not moral. Why it matters: Marketers can’t sell “virtue” to everyone. Older audiences respond to ethics and social impact, while younger ones reward convenience and consistency. Tailoring messaging to each definition of trust is now key to effective cross-generational branding.

Grnns turned a boring wellness habit into a $300M brand by flipping psychology: it made taking vitamins feel like eating candy. The formula? Turn what people should do but hate (or feel guilty about) into something they enjoy. In enterprise AI, that means making dull tasks feel creative, like managing agents instead of doing grunt work. In consumer products, it means transforming guilt (snacking, shopping, binge-watching) into permission through smart, gamified, or participatory design. Why it matters: This “flip pain → pleasure/guilt → permission” mindset could define the next wave of product innovation, especially in AI, where the winners will make hard or guilty experiences feel effortless and fun.

Feel free to reply to this email anytime with feedback or suggestions.

— Sam C.