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.

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Instead of brainstorming subjectively and then seeking data to support a favorite idea, start with audience insights. Analyzing what content people already engage with defines the creative sandbox, leading to more effective campaigns from the outset and avoiding resource-draining failures.

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.

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.

Acknowledging that "relevance" is subjective shouldn't lead to creating generic, one-size-fits-all campaigns. Instead, it demands a high-volume creative strategy that produces dozens of distinct assets, each tailored to be hyper-relevant to a specific consumer segment or "demand state."

Stop planning creative and media buys simultaneously. Instead, post creative organically first. Then, exclusively allocate media spend to amplify the content that has already demonstrated strong consumer engagement, forcing creative to be effective on its own merit before receiving paid support.

If your creative assets aren't culturally relevant, you're forced to overspend on media to achieve impact. Truly resonant content generates organic reach and makes paid amplification more efficient, a key argument for CFOs on the value of creative investment.

Agencies are optimized for efficiency, stifling the creative experimentation needed for platforms like Meta. Top-performing brands employ an in-house strategist whose sole job is generating a high volume of diverse, "wacky" ad concepts—a function that can't be effectively outsourced.

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.

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.