AM PM Advertiser (0:00)

What do you think makes the perfect snack?

AM PM Advertiser (0:02)

Hmm. It's gotta be when I'm really craving it and it's convenient.

AM PM Advertiser (0:05)

Could you be more specific?

AM PM Advertiser (0:06)

When it's cravinient.

AM PM Advertiser (0:08)

Okay.

AM PM Advertiser (0:08)

Like a freshly baked cookie made with real butter, available right down the street at am pm. Or a savory breakfast sandwich I can grab in just a second at a.m. pM.

AM PM Advertiser (0:16)

I'm seeing a pattern here.

AM PM Advertiser (0:17)

Well, yeah, we're talking about what I.

AM PM Advertiser (0:19)

Crave, which is anything from am, pm.

AM PM Advertiser (0:21)

What more could you want? Stop by AM PM where the snacks and drinks are perfectly craveable and convenient. That's cravenience. Am, pm Too much. Good stuff.

Grainger Narrator (0:30)

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AM PM Advertiser (1:00)

So we've made progress on pretty much every front and I think it's worth, it's worth hearing about that progress from the team and they will also ask answer questions and I'll look at my X feed as well, see if there's any zingers in there that I can answer. But the. I guess the main message we wanted to convey is that the advertising technology for X, formerly Twitter, has improved dramatically so that the targeting is actually appropriate. So previously there really wasn't any targeting. So people would basically see spam ads, meaning a spam ad is an ad that doesn't meet the user's needs, whereas an ad that meets a user's needs, if it's a product or service that they want, especially when they want it, that is actually content. So our goal is to move as quickly as possible to having ads for products and services that directly meet the needs of users. And we're looking for actually very specific product ads. So we certainly welcome brand advertising, we welcome sort of general message advertising. But the thing we're actually asking advertisers to do is to now consider doing ads for very specific products and services so we can actually connect users with products and services that would make their lives better. And that's. We finally have the technology to do that by using AI matching. Essentially we look at what users do publicly, what do they interact with, what do they like what posts they view and, and then that creates essentially the set of interests of the user. And then the same thing with the ad. We see what users pay attention to what ads and that essentially creates a profile for that ad and we correlate the user interests with that particular product or service and that results in radically better matching. But the sheer number of times I've talked to people and I've said for how many years have you used X or Twitter? And they might say as long as 10 years and I'll say how much have you bought on X, even going back to when it was Twitter? And they'd say almost nothing, if not nothing. And we want to change that completely to where you can even go on X and you look forward to, to the ads, where you're actually interested to see what ads show up because they're going to be for products and services that you want. And that's the sort of nirvana goal that we have here. And we're using Grok AI to help achieve that goal. That's really fundamental. And then we've also been asked about as related to Grok, if somebody has a query on Grok, should we perhaps have some advertising there? We haven't done that yet, but we are working on that. But yeah, our number one request for advertisers is very simple, which is to put product and service, very specific products, very specific services on the system so that Groq can match your products and Services to the 600 million monthly users that we have on the system. And when you consider total number of users on the X system, it's closer to a billion. Some only will come in every three months or something like that. But total live people with accounts is about a billion on the X platform. And it's also very much worth emphasizing that the users on the X platform have the highest buying power of any audience anywhere. So you know, certainly have a lot of respect for the advertising platforms on, you know, TikTok or even Snapchat and others. But very often the user base is very young and does not have the money to buy things. Our, our user base consists of the smartest and wealthiest people in the world. So it's a no brainer to show them stuff, anything they see they can buy. So it is a, it's the wealthiest advertising demographic, I think, of any platform, social media or real media on earth. And I really want that message to resonate. Something that I think is actually very important is to actually let the Grok AI actually figure out the right targeting. Sometimes advertisers want to say, okay, we want to target men or women of a particular age or something like that. But actually if you're, I mean, frogman's sake, let's say you're selling gardening tools, you just care that somebody likes gardening. You don't care if they're an 80 year old woman or a 20 year old man. You just care that they're interested in gardening. And that's what Grok can figure out. So historically you have to do these guesses based on demographic breakdown, but you don't have to do that anymore. You can literally just let the AI do everything and it actually ends up with a better outcome. So that's, I'd encourage, you know, just, just let the AI do its thing and it'll, it'll find your product, it'll match the product and service to the user's needs and that'll actually be the best outcome. If you advertise a product or service that the user needs when they want it, that's the ideal moment. So like, let's say in speaking of reply ads, that there's a reply thread discussing auto insurance and someone's maybe unhappy with their auto, existing auto insurance provider and they're discussing, you know, what, what, what the other options are that would be the perfect location to put, you know, car insurance. It's like, what about us? Because that's, that's, that's both what somebody's interested in and when they're interested in it. So reply ads can be very powerful. Targeting really just means reducing the probability that an ad is spam for a user, that an ad is not applicable. We do actually care about the aesthetics of ads. That a beautiful ad is actually quite important to us because if an ad is ugly or strident, that damages our product. If somebody's scrolling through and they see an ad and that that ad is jarring and just really upsetting or ugly, then that actually damages our user experience and that damages our product. So we actually want to favor ads that are beautiful. So just to be clear, that ads will receive a slight boost if they are aesthetically. I mean, we're not talking about they need to win some contest or something, just not jarring and ugly. So I have a personal aversion to jarring ugly ads and I'd actually rather make less money than have strident and ugly ads in the system. And then we are changing the cost of an ad proportionate to how much vertical space it takes. Just as a full page ad in a newspaper costs a lot more than a quarter page ad. The smaller the ad is, the more ad impressions we'll get for a given dollar. Even in that case though, I think there's clearly a lot of blank space around the ad itself. It should really be, the image should be shortened to be relevant. There's no point in having a bunch of blank space around that. General brand advertising is certainly fine, but that doesn't require much targeting if it's a big brand but for specific products. So your product helps people sleep better and that obviously would be the ideal time to show users an ad for your product. It would be if there's any discussion about sleep or if they've made some comment about like not getting enough good sleep and maybe the eight sleep, you know, mattress would, would solve their, their issues. That's, that's obviously would be perfect. And then, you know, I'm, I'm particularly looking for unregretted user purchases. So a user sees a product or service, buys a product or service and it's, and it solves their need, then I think we've done something fundamentally good. Yeah, yeah. If people have received a product or service that has made their lives better, so even they have no post purchase regret, in fact they're happy, then we've done a good thing for the world. So that's our goal. I'd really advise to be as specific as possible. So even if you've got say a large number of products, my recommendation would be to put what you think are the most likely products that people would buy. Because if you give, sometimes if you give people too much choice, they're like, I don't know what to do here. You know, maybe just give them what is probably the best choice and then they can always, you know, maybe go to the website and change that or something. But try, if you try to give people as specific a solution to the problem as possible, I think that's the right way to go. Yeah. And you can, you can upload several, several products. But, but it's, you know, and it's, I think it's like sometimes there's the product carousel, that's okay, but you really just, you really want to just, you only have the user intention for maybe a second or two and you want to just have that. It's like, okay, it's this one, go for it. And you can put in different products and see which ones are more resonant. But we're trying to be as precise as possible. So we have the highest, that Grok has the highest probability of matching a Product or service with product. Product or service with the user's actual needs. Yeah, in fact, you can do, you can do that right now. If you, if you, if you use Groq and you can actually ask Grok, just go, go. You know, maybe use Grok Expert mode. I'd recommend this to everyone because you can do it right now is, you know, maybe you can post a. Probably the best way to do this, certainly for copy, for text copy, you could say, what is the best way to represent this? And ask Grok to give you some recommendations. You can literally just do that on Grok and the X app or the grok app or grok.com and I think you'll see some interesting suggestions. Because Groq, actually one of the big advantages of the GROK AI is that it's connected to the X system. So it actually understands the X system. It's ingested the entire, it's done training on the entire X, all of the public user posts it's done training on. So it actually has a good sense of what people respond to already. You just literally ask Grok right now. Yeah, we have what I call Grok imagine it's version 0.1 beta. And so you can take any image and turn that into a six second video with Grok right now and in like 16 seconds. And you can, you can, you can Grok will, it's somewhat randomize it so you can actually do many different videos and generally the video is going to be a little bit more compelling than a static image. And you can also give Grok Imagine custom instructions. This is just kind of, I would literally call it version 0.1 of our product. We've got a much more sophisticated version coming out in two or three weeks where you can add voiceover. You can add. In fact, technically right now we just added a feature where you can do some voiceover. It's worth trying out. Basically update your Grok app and your Axe app almost every day because we're rolling out upgrades and features and bug fixes almost every day. You'll just be able to say, Grok, just make me a video ad or an image ad or whatever or text ad that is that accurately describes my product and is likely to appeal to the audience. Based on what Grok knows about X and pretty much knows everything about X. Then, yeah, it should be super easy to create a text image or video ad with Grok. You can upload any image right now, including an image of your product to Grok. So you can do it from your phone in like five seconds. So any or from your browser you can take, you can take an image of your product and turn that into a video and then you can actually say now add something new to the video. But things are evolving very quickly. So like you said, update your app almost every day and there'll be new features and functionality. The rate of evolution is very fast. And we are implementing like we are seeing a little bit of where the same ad is shown to too many people. The over frequency issue, in fact that was just raising that with, with Roman right before this meeting and we should see significant improvement to that by Friday. We're actually pushing a change that reduces the over frequency problem literally in two days. There's clearly times when a single user is shown the same ad far too many times. Like it's so, you know, 100 times type of thing. That's silly. So we're going to iterate until we see like what, what actually results in an effective and purchase experience. You know, past a certain point you're really just, you know, beating a dead horse. It's kind of pointless, I guess generally when any product breaks with especially AI, but really almost any product or any kind of new thing if it's, it's going to trend on X almost immediately. So you can kind of tell if a product's going to be successful actually because it's going to trend organically on X in a big way. And I guess we would also see it with grok, you know, when people ask rock questions, you can see that frequency spike when there's something new and interesting. We do think that immersive video advertising is important and that will be a significant focus in the future. So if you're an immersive video, you should see immersive, compelling video ads. And then the same thing is true when people do search with LMS or at least with grok, which we should show people products that they would find interesting. If there are false claims made on our system, we will, that that ad will be struck from the system. Well, I don't know about nuances, but if, if, if misleading claims are made, then the, then that ad will be struck from the system and that advertiser will be banned from X. We actually have GROK assess the scamminess of an ad. So there are far fewer scammy ads that actually come through because Grok's pretty smart and GROK gets smarter over time. So if an ad is misleading, Grok, I think is going to figure that out. Compelling ads without being misleading. There have been a lot of improvements behind the scenes. So admittedly the interface is suboptimal, but in terms of matching, there have been significant improvements behind the scenes, and we have seen advertisers see double or triple the conversion rates that they were seeing even a few months ago. It may not, on the surface, appear like there's a lot happening, but there's certainly a lot happening beneath the surface. I don't believe in disruption for the sake of disruption. And I mean, frankly, for the X system, we're just trying to get to where we're at a level of capability that is kind of industry standard. The old Twitter advertising system basically had no targeting, so it was just kind of random spam. And we're trying to get. And we're making progress rapidly to the point where we're showing users products and services that they actually want to buy. So we're coming from a kind of a tough position, but making rapid progress to showing users products and services that they actually want to buy. The asset test being that you're on the system, if you're on the X system for several hours a week, you should have probably bought something or certainly seen ads for lots of things that you'd want to buy. We're trying not to inject editorial into advertising. Apart from the fact that we want ads to be aesthetically pleasing, to be beautiful and, and not to be shrill in any way, and we want them to be accurate. That's. That's. And match to a user's needs. That's it. So, yeah, to be clear, like, we're not saying that an ad needs to be winning most Beautiful Ad of the Year award, but, but that it just can't be extremely ugly and strident. That's all. So if, if GROK determines that an ad is, you know, just is shrill, strident, ugly and discordant, it will receive a penalty. But it really, an okay ad will. Will not receive a penalty. It doesn't need to be winning any, you know, major aesthetic contest. It just needs to not be aggravating. Yeah, absolutely. GROK will do this dynamically. So this should just happen automatically. Just put the ad in and it should react automatically to any. Anything that's happening in real time. So. And with that, yeah, thank you for tuning in. We're working hard to make X a great platform for advertising, ultimately the best advertising. The best platform for advertising. And appreciate your support. Thank you.