The news: Meta’s Q2 2025 earnings confirmed the company is not just weathering digital ad headwinds—it’s outperforming them. Even with softening engagement in mature markets, Meta is increasing ad revenues through stronger pricing, better AI tools, and new ad offerings on WhatsApp. But as Meta aggressively builds for an AI future, several questions remain.

1. How much more can Meta grow without more user engagement?

Meta’s Family Daily Active People rose just 6% YoY to $3.48 billion, but revenues surged 22% YoY to $47.52 billion, and ad revenues hit $46.56 billion, up 21%. This disconnect between usage growth and monetization shows Meta’s ability to extract more value per user session. In the US and Canada, for example, ad revenues rose to $20.05 billion—up nearly $1.8 billion YoY—despite flat engagement and limited impression growth.

2. Is Meta’s pricing power sustainable?

The short answer: So far, yes. Average price per ad grew 9% globally, while impressions increased 11%. That pricing power was even stronger in key markets—Europe saw a 17% increase in average ad price, and North America rose 11%, despite only modest impression gains. This suggests that advertisers continue to see better returns and are willing to pay for them—a likely result of Meta’s AI optimization tools like Advantage+, now used by over 4 million advertisers.

3. Can Asia-Pacific drive the next leg of ad revenue growth?

All signs point to yes. Asia-Pacific was Meta’s fastest-growing region in Q2:

• Ad revenues: $11.37 billion
• Impression growth: 16% YoY
• Ad price growth: 2% YoY

That mix of rising volume with low pricing shows untapped upside. As AI tools and automation spread further into the region, Meta could see margin expansion without needing more users.