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New Meta Andromeda Update Is Killing Facebook Ads ROAS (Do This ASAP)

By Sam Piliero

Summary

## Key takeaways - **Andromeda's Shift: From Audience to Creative Matching**: Meta's Andromeda update fundamentally changes ad delivery from audience-based matching to a system that matches specific ad creatives to individuals at the right time. This means the focus is no longer on who you're targeting broadly, but on the creative itself and its individual resonance. [02:48] - **New Paradigm: One-to-One Matching and Creative Volume**: Andromeda utilizes a highly customized deep neural network for one-to-one matching, enabling ads to be served to the right person at the right place and time. This necessitates a significant increase in creative volume, as more active ads are needed to serve this personalized system. [03:30], [02:20] - **Advantage Plus is Andromeda's Engine**: The Advantage Plus algorithm is essentially the Andromeda algorithm in action. If you were using Advantage Plus campaigns or had it enabled, you were likely already running on Andromeda, even before its full rollout across all accounts. [04:20] - **Solution: Embrace Broad CBO and Creative Diversity**: To adapt, shift to a Campaign Budget Optimization (CBO) structure with broad prospecting campaigns and diverse creatives. Avoid heavy restrictions, individual campaign budgets, or forcing spend on specific ads, allowing Andromeda's algorithm to optimize delivery. [05:44], [07:45] - **Structure: Prospecting is Key, Retargeting is Stable**: While retargeting and retention campaigns remain stable as they target a known, tight group, the core focus for adapting to Andromeda should be on prospecting campaigns. This is where the algorithm's new matching capabilities for acquiring net new customers will have the most value. [07:04] - **Creative Graduation: Scale and Interest Ad Sets**: The top-performing ads from prospecting should be duplicated into a 'scale campaign' and also into 'interest ad sets.' This strategy leverages Andromeda's ability to find new pockets of success by targeting lightly with interest groups that expand the broad audience. [10:05]

Topics Covered

  • Andromeda shifts Meta ads to individual, not audience, matching.
  • How to fix ROAS: give every ad a shot with volume.
  • Use CBO prospecting campaigns for new customer acquisition.
  • Creative diversity is crucial for Andromeda's optimization.
  • Expand broad audience reach using successful interest groups.

Full Transcript

Everybody is talking about Facebook's

new Andromeda update because it is

killing return on ad spends across the

board. So, if your ads have been

struggling recently, today I'm going to

show you exactly what this update means

for you, why it's been so bad for

certain advertisers, and most

importantly, I'm going to break down how

you can actually fix it. So, first

things first, this update has changed a

lot of how the algorithm functions, how

ads are delivered to the right people at

the right time, at the right place, and

ultimately is one of the biggest

algorithmic changes that we've seen

since 2021. What I want to start with is

an actual look at the white paper. Now,

I'm not going to read this word for

word. I'm just going to highlight the

two to three things in here that

everybody needs to know. Now, right off

the bat, the first thing you need to

understand is that this post came out on

December 2nd of 2024. And even though

this officially hit all accounts just

about 30 days ago, it was actually

rolled out incrementally to different

accounts. And on top of just different

accounts, it was rolled out to Advantage

Plus campaigns versus non-advantage plus

campaigns and audiences. So this white

paper is completely public. I'll make

sure we pin it down in the description.

You could also just search Meta

Andromeda and it's the first thing

that's going to come up. So the first

part that's really important for us to

understand is why did they even build

Andromeda? Because you need to know how

they built it before you could actually

find the solution to what you need to

do. So in this case, they're addressing

their challenges and opportunities in

this new era of advertising automation

with generative AI. Now, big tip here,

this is something that's not released

publicly. I was just at a Meta

conference and they are pushing this

generative AI approach very hard. I

believe it's the thing they're going to

stand on the most in 2026 and beyond. So

in the white paper they're evaluating

two main problems. The volume of ad

candidates being a problem and then the

tight latency of constraints. Now what

does this even mean? The really short

version of this is that the volume of ad

candidates is what ads apply to a

specific person? So of the thousands of

advertisers out there, who deserves to

get my impression? Who deserves to get

my view? The next piece is the tight

latency of constraints. This means that

there's a very short time window for

when my ad can be delivered to the right

person at the right time. So with these

two bullet points, what they're alluding

to is that more creative volume is

necessary. We need to have more active

ads than ever before. Now, as we dig

further into this white paper, you can

see that there's a huge investment that

Meta is taking and they're actually

using very clear words like high return

on investment. They really want to show

that they are putting a lot into this to

get the best ROI for advertisers and

that while even though Facebook's

getting more competitive, updates like

this should make the platform even

better. Now, the key thing you need to

understand about Andromeda and why it is

so different is in short, it is matching

the ad creative at the right time to an

individual. We are no longer in the

audience sector of matching. This has

completely completely shifted. Now,

there are some caveats here which I'm

going to break down, but what you should

read here is very important. Meta's new

personalized ads retrieval paradigm.

Before Andromeda, Meta's retrieval

systems were only able to apply limited

personalization. They relied on isolated

model stages and numerous rule-based

heruristics to manage a vast number of

ads. And the big difference with

Andromeda is it is able to efficiently

scale retrieval models by designing a

highly customized deep neural network.

Let me just say that in very simple

terms. It can do what old meta cannot

do. It can match onetoone right time,

right place. That is a massive update.

And now we need to make sure our

structure and strategy is adapting to

exactly what Andromeda is allowing us to

do. So now that we've gone through the

white paper, some of the key issues that

they're tackling with Andromeda, you

need to understand something that's

actually been going on in the background

in many, many ad accounts, if not all ad

accounts over the last four to 5 months.

I mentioned at the beginning that the

white paper I just went through released

in December of 2024. So they have been

working on this obviously for a long

time. They've been rolling it out for

the course of the entire year. And now

in this case, how has Andromeda already

applied into ad accounts? From my

understanding, from the whispers of

Facebook and from basically everyone in

our community, I've grown to understand

that the advantage plus algorithm is the

Andromeda algorithm. And prior to the

full sweep of Andromeda, where it is

everywhere now, any audience that had

advantage plus on was using the

Andromeda algorithm. In previous setups

of days, even 6 months ago, this was

known as ASC, right? Classic ASC

uncontrollable campaigns. Now I have

generally pushed to use manual campaigns

in many cases which are now using the

Andromeda algorithm. But if you had or

were using anything with advantage plus

on that would indicate you are actually

using that Andromeda algorithm. There's

a good chance you've been running this

already. And if you've been using manual

everything then you're swapped over to

it. Now just so I'm super super clear.

If your audience looks like this where

we have advantage plus on and in many

cases we are not clicking further limit

the reach of your ads then you were

already running on the Andromeda

algorithm. If you were selecting further

limit the reach of my ads and you had

advantage plus up here off then you were

not on the Andromeda algorithm. This is

a very key distinction so you could see

if you were forcefully swapped over or

if you were manually swapped over. Let's

talk about solutions here. How on earth

do we fix this? How do we approach ads

now with this new update where basically

everything was ripped from under us?

Okay, it is actually really simple.

There is one core concept and two

mechanisms that we need to apply. The

core concept is we need to give

everything a shot and we need to have

volume of giving everything a shot. So

when I say give everything a shot, I

mean every single ad that gets uploaded

needs to have an equal opportunity to

actually spend. Now, what that means is

we can't have any heavy restrictions in

our ad account that we may have had

previously. That means is completely

completely dead because as we just read

in that white paper, it has never been a

better time to allow all of your ads to

have a shot at serving to an individual.

We are in an individual matching system.

So, if you are grouping things together

and restricting those things together

with specific budgets or even worse,

forcing budgets on ads that don't

deserve spend, then Meta is going to

have a harder time matching the right

person to your ad. And in many cases,

you will get lower ad rank, higher CPCs,

higher CPMs, and of course, a worse ROI.

What do we do? First, let's talk

structure. I have shared this exact

structure for the last year and it's

almost like I had a feeling this was

coming. It's almost like I've done some

of my research. This exact structure

where we are focused on a scale

campaign, a prospecting campaign, which

is the most important part of this, a

retargeting, and a retention campaign.

Those are all still critical. Now, let

me just get the easy ones out of the

way. Your retargeting campaign and your

retention campaign. This is where you're

hitting your engaged and existing

customers. Andromeda does not apply as

hard here. And the reason is very

simple. That is a very tight group of

customers that you are specifically

targeting and you are okay with forcing

spend on that group. Where Andromeda is

going to have the most value is for

acquiring net new customers for your

business so you can actually scale. So

what we want to focus on specifically is

the prospecting campaign. Now the

prospecting campaign is the campaign

that we are launching individual broad

packs every single time we upload new

creatives. So the workflow here is very

straightforward. We run a single

prospecting campaign on a CBO structure.

The reason the CBO structure works here

more than ever is because Andromeda is

built in a way where it needs to have

the flexibility to spend the cash on

whatever is working the best or wherever

it can match the most relevant ad to the

right person. The next piece and the

rest of this is essentially

organizational pieces. It's still very

important to have organization in the ad

account because it's no longer about

breaking things out and setting budgets.

It's way more about making sure you're

understanding what packs apply where,

when packs need to be paused or

restarted, and even making sure you're

limiting the learning phase of many,

many, many packs that you may launch.

Each of these packs that we've been

running for over a year now with this

exact setup host anywhere from one

creative to as many creatives as you

need, but you only launch those on a

specific day. So, if I have ads ready

today, they get launched in a pack. If I

have ads ready by the end of this week,

then they get launched in a new pack,

right? And you can see here, I like to

date my packs. So, if this was the first

day of the year, I'd say broadpack one.

If this was the 15th day of the year,

I'd say broadpack number two. Okay? So,

when we build this core system, which we

have right here, this exact core system

that I have on my screen right here,

we're going to have a lot of ads, which

is very, very important. We want to have

creative diversity. We need to have

creative diversity so that Andromeda

could show the best ads to the best

people at the right time. That time

factor only comes into play if you go

wide. Meaning you run CBO, campaign

budget optimization, and you don't have

a dozen different campaigns in your ad

account. So, if your ad account has 20

different campaigns in it, all active,

all with little individual budgets, you

are going to get crushed because you are

essentially force-feeding this massive

algorithm that is meant to do the exact

opposite thing. That is meant to work

slowly and allow the best ads to get

served to the best people at the best

time. That is the key. Now, for loyal

listeners out there, I know you want to

talk about the graduation process. The

graduation process remains the same. You

do two things in graduation. Graduation

is just a place to host your best of

your best of your best ads. You should

really only do this when you're at least

spending $10,000 per month. Otherwise,

just ignore this step completely and

just continue to run broad in interest

packs. When you graduate, you do two

things. First, you take your best of

your best ads and you graduate them into

a scale campaign. So, you take that ad.

I'll show you in ads manager right here.

You take your ads from prospecting that

are the best of the best. You duplicate

them and you push them into the scale

campaign. The second thing that you do

is you take that same top performing ad.

So let's say it was creative number five

was our top performing ad and we

graduate that into an interest adet. Now

the reason we push this into an interest

ad set is because we want that hyperco

competitive environment that allows

Andromeda to spend money where it's most

likely to make money back. And we want

to target lightly with interest groups.

The key of interest groups is that they

expand the broad audience. So, if you

look at your broad audiences, you'll

notice that you might only reach 10,000,

20,000 people, 100,000 people, 200,000

people, but you're not anywhere near the

150 million people that you could be

targeting. And what often happens is you

get stuck. My broad audience can only

reach this many people. And maybe you

could push it really hard, but it gets

higher and higher in cost. So, when you

run interests that are successful with

your best ads, your broad audience

actually finds new pockets of potential

success and therefore expands over time.

This is a very important concept that

basically everyone needs to understand.

By the way, if an update like this is

absolutely blowing your mind, then go to

the moonlighters.com/apply

to actually see if you're fit to work

with us so that you can be months and

months ahead of this, right? We want to

be at the cutting edge of any update

that's happening because days and days

of waiting to apply the right structure,

strategy, system, and actually have

hands-on help could cost thousands of

dollars. That said, this Andromeda

update is a huge one. And if you want to

go into way more detail about the

structure that I just detailed out, then

click this video right here where I

break down my exact structure in extreme

detail, probably five times as long as

you just heard, so you can understand

exactly what campaigns, adets, and even

ads to set up. Don't forget to triple

down on your creative volume right now.

It has never been more important,

especially as we head into the fourth

quarter. And lastly, if you got value

out of this video, let me know in the

comments below.

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