why your ads are performing like sh*t (urgent andromeda update)

Summary

In this video, Mark explains the impact of Facebook's Andromeda update on ad performance, focusing on the changes in how Facebook's algorithm sorts and serves ads. He details the four-step ad retrieval process, highlighting the importance of creative diversity in this new system. Mark advises advertisers to prioritize unique creative concepts over variations and emphasizes that creative is now the primary form of targeting. The video provides valuable insights on adapting to these changes to optimize ad performance and stay competitive in the evolving landscape of AI-driven advertising.

Takeaways

• 😀 Facebook's Andromeda update is a new AI-powered algorithm focused on improving ad retrieval and sorting processes for better ad targeting and efficiency.
• 😀 The update aims to deal with the massive influx of AI-generated ads, improving the speed and accuracy of ad sorting from millions of creatives to thousands within milliseconds.
• 😀 Facebook's ad sorting process involves four main steps: retrieval, light ranking, final scoring, and auction, with the Andromeda update focusing on the retrieval phase.
• 😀 Understanding how Facebook's algorithm works is crucial for adapting to the Andromeda update and optimizing ad performance.
• 😀 The new Andromeda system relies on Nvidia's Gracehopper superchips, enabling significantly faster and more scalable ad retrieval and sorting.
• 😀 Creative diversity is critical for success in the Andromeda era, as Facebook now groups similar ads together for efficiency, making it essential to use varied and unique creative assets.
• 😀 Targeting has become less important compared to creative, with AI now using the creative itself as the primary method for ad targeting and personalization.
• 😀 Testing variations is less effective post-Andromeda; advertisers should focus on creating new ad concepts rather than slight variations of the same creative.
• 😀 Quality over quantity is key—advertisers should focus on a few standout creatives rather than testing hundreds of similar ads.
• 😀 The Andromeda update favors ads that are personalized to specific customer avatars or demographics, making more targeted ads perform better than mass-market ads.
• 😀 Moving forward, advertisers should prioritize developing new ad concepts and exploring different formats and angles, rather than relying solely on variations of existing creatives.

Q & A

What is the Andromeda update on Facebook, and why is it important?

The Andromeda update is a new AI-powered algorithm that Facebook implemented to better handle the massive volume of ads being shown. It significantly impacts how Facebook sorts and decides which ads to show to users by focusing on improving the ad retrieval phase, making the process faster, more efficient, and more scalable.

Why are advertisers struggling after the Andromeda update?

Advertisers are struggling because they don't fully understand how Facebook's new ad system works. The Andromeda update is complex and alters the ad sorting mechanism, making it difficult for advertisers who rely on older strategies of manual targeting and small ad variations.

How does Facebook decide which ads to show to users?

Facebook uses a four-step process: retrieval (filtering millions of ads), light ranking (narrowing to thousands), final scoring (ranking based on predicted value), and auction (competing ads based on value). Each ad's performance depends on these factors to determine which creatives resonate with specific audiences.

What is creative diversity, and why is it important after the Andromeda update?

Creative diversity refers to having a wide range of different ad formats, angles, and content rather than just minor variations of the same ad. It's important because Andromeda organizes ads into groups based on similarity, so having diverse creatives ensures better performance in the ad retrieval phase, where Facebook filters ads.

How does the Andromeda update handle the increasing volume of AI-generated ads?

The Andromeda update uses AI and Nvidia’s supercomputing technology to process the vast volume of AI-generated ads more efficiently. This AI-powered system helps Facebook keep up with the influx of ads while maintaining accuracy in sorting and targeting.

How has the Andromeda update changed the way ads are tested on Facebook?

The Andromeda update shifts the focus from testing small variations of the same creative to testing completely new concepts. Advertisers are now encouraged to create unique, diverse creatives that are more likely to succeed in Facebook’s AI-driven ad ecosystem, as opposed to just testing different hooks or slight changes.

What is the impact of the Andromeda update on targeting strategies?

Targeting has become less manual, and Facebook now places more emphasis on the creative itself. The AI analyzes elements like imagery, text, and sentiment to determine who should see the ad. This means the creative content is now the primary tool for targeting, reducing the effectiveness of traditional targeting options.

Why is it more important than ever to prioritize creative quality over quantity?

With the Andromeda update, Facebook’s AI system values creativity and engagement over sheer volume. High-quality, unique creatives will perform better than running a large number of similar ads. The algorithm favors ads that offer diversity and engage the target audience effectively.

What is the difference between a new concept and a variation in ad testing?

A new concept involves completely changing the approach to an ad, such as using a new format, angle, or message. A variation, on the other hand, is a minor tweak, like changing an image or adjusting copy. After the Andromeda update, new concepts are more important for success than small variations.

How can advertisers adapt to the changes brought by the Andromeda update?

Advertisers can adapt by focusing on creating more unique, diverse, and high-quality ads rather than tweaking the same creatives. They should prioritize new concepts, use fewer but stronger creatives, and embrace AI-driven ad targeting, understanding that creative content now drives audience targeting more than traditional methods.