When allocating ad budget, understand that video ads have higher performance volatility than images. Your biggest winning ads will likely be videos, but so will your biggest losers. Images tend to provide more consistent, average results, making them a safer bet if video creative is poor.

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Contrary to the prevailing "video-first" narrative, Meta's own data shows that 60-70% of ad conversions still come from static images. Furthermore, carousel ads are experiencing a significant resurgence, making them a top-performing format that advertisers should prioritize for the new algorithm.

A low Customer Acquisition Cost (CAC) might seem successful, but it could be hiding inefficient creative. Optimizing creative strategy could dramatically lower CAC further (e.g., from $39 to $16), unlocking greater profitability and scale, especially as you increase ad spend.

To de-risk ad spend, use your organic social media as a testing environment. Post content regularly, identify the videos or images with the highest engagement, and then repurpose those proven winners as paid ads by simply adding a call-to-action at the end.

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.

Don't waste money testing ad creative from scratch. First, post content organically across platforms. When a piece performs exceptionally well, use that as a clear signal to put paid advertising spend behind it. The algorithm and audience have already validated its appeal, de-risking your ad budget.

Don't guess which ads will work. Post content organically and let the platform's algorithm validate it. When a post gets unusually high engagement, you've found a winner. Turn that specific post into a targeted paid ad to de-risk your ad spend.

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.

In mature ad markets, creative quality is the biggest variable for success, not media spend. High-performing companies now shift budget away from platforms like Meta and Google and reinvest it into producing more content. This superior creative makes the remaining, smaller media spend far more effective.

Standard top-of-funnel campaigns like "video views" often target low-quality audiences that Facebook's algorithm has already identified as non-buyers. True top-of-funnel marketing requires a unique method for capturing attention, like viral TikTok content or major creator partnerships.

Counterintuitively, static ads can drive more app downloads or website clicks because they are less disruptive to a user's entertainment flow. Clicking away from an engaging video is a bigger interruption than clicking a static image, leading to lower conversion rates for complex actions.