• CNBC's Jim Cramer on Tuesday discussed why Meta is seeing more success with digital advertising than many of its peers, suggesting a significant investment in artificial intelligence is giving the Facebook parent an edge as advertisers grow more selective.
• "It's precisely because the digital ad market's gotten worse that Meta's holding up great while the rest are struggling," he said. "If you're being careful with your ad budget, Meta's how you get the best bang for the buck."

CNBC's Jim Cramer on Tuesday discussed why Meta is seeing more success with digital advertising than many of its peers, suggesting a significant investment in artificial intelligence is giving the Facebook parent an edge as advertisers grow more selective.

"It's precisely because the digital ad market's gotten worse that Meta's holding up great while the rest are struggling," he said. "If you're being careful with your ad budget, Meta's how you get the best bang for the buck."

Meta posted a better-than-expected quarter last week, reporting solid growth in digital advertising revenue, up 22% from one year ago. Ad sales, primarily from Facebook and Instagram, make up the majority of the company's business.

Meanwhile, Alphabet's YouTube ad revenue missed expectations and Amazon reported a slight miss in the same category. Pinterest and Snapchat parent Snap discussed softness in demand from certain advertisers. The latter posted poor guidance and management said sales were affected by "a weaker brand advertising environment for certain consumer discretionary verticals."

To Cramer, Meta's services are desirable in part because it is able to show advertisers how well their ads were received by consumers. It became harder for platforms such as Facebook to collect this kind of data after Apple enacted new privacy features a few years ago. But Cramer said Meta seems to have moved past this obstacle in part due to new AI technology. Advertisers facing headwinds are more likely to spend on ads if they have data to justify the success of campaigns, he added, and suggested that Meta is ahead of its peers when it comes to providing this kind of information.

"Meta's winning in digital advertising because they don't just help companies place ads and target the right audience, they also help those companies measure the performance of their ads after the fact," Cramer said.

Meta did not immediately respond to CNBC's request for comment.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Meta, Apple and Alphabet.

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