Previously, marketers told Meta who to target. With the new AI algorithm, marketers provide diverse creative, and the AI uses that creative to find the right audience. Targeting control has shifted from human to machine, fundamentally changing how ads are built and optimized.
GenAI transforms advertising's core pillars. It enables hyper-personalized creatives at scale, democratizes ad production for smaller businesses, and fundamentally enhances the two most critical functions of any ad platform: predicting user behavior and measuring campaign outcomes.
The next evolution, the Generative Ads Recommendation Model (GEM), aims to fully automate ad creation. Marketers will simply provide an image and a budget, and the AI will generate the entire ad library. This shifts the marketer's primary value from ad creation to optimizing the post-click customer journey and offer.
Social media has evolved into 'interest media.' The algorithm is so effective that the content itself—the words you use, your background, your appearance—is the primary targeting mechanism. Instead of chasing broad appeal, create content specifically for your ideal avatar, and the platform will find them for you.
The largest advertisers on platforms like Meta launch over 10,000 new creatives a year, equating to more than 40 per workday. This massive scale of experimentation is manually impossible for most companies, creating a clear market need for AI platforms that automate and scale video production.
Marketers should use AI-driven insights at the beginning of the creative process to inform campaign strategy, rather than solely at the end for performance analysis. This approach combines human creativity with data to create more resonant campaigns and avoid generic AI-generated content.
Instead of testing individual ad variations, advertisers can use the "Dynamic Creative" (for leads) or "Flexible Creative" (for sales) toggles. This allows combining multiple top-performing images, videos, headlines, and text into a single ad unit, which Meta’s algorithm then mixes and matches to find the optimal combination for different users.
Simply swapping headlines or colors on the same image is now penalized with higher CPMs. The Andromeda algorithm demands a wide variety of creative formats (static images, UGC, carousels, memes) and angles (pain points, testimonials, curiosity), viewing minor iterations as a single, less valuable creative piece.
With Meta's Andromeda algorithm automating audience targeting, the primary reason for poor ad performance is no longer incorrect targeting settings. Wasted money is now almost exclusively a result of insufficient or non-diverse creative, making creative strategy the most critical component of a successful campaign.
A new Marketing API feature allows Meta's AI to allocate up to 5% of ad spend to placements explicitly excluded by an advertiser. This signifies a major shift towards autonomous campaigns, reflecting Meta's confidence that its system can identify performance opportunities even in channels that human advertisers have ruled out.
While Meta's new AI algorithm excels for broad-reach businesses like e-commerce, it performs poorly for location-specific models like brick-and-mortar stores. The AI struggles with geographic constraints, often serving ads far outside the desired radius, making manual targeting the superior option for these businesses.