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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