Why ROAS Collapses After Andromeda (And How to Reverse It) transcript

Look at this iPad. On it is the Andromeda white paper directly from Meta themselves. It explains why your rorowaz is tanking and why your CPAs are higher than ever before. And by the end of this video, you'll have a full step-by-step understanding of why this is happening, exactly how to fix it, and how you can scale to 1K, 10K, and even 100K a day profitably after the Meta Andromeda update. Now, look, I personally advise on over $200 million in ad spend, and my agency manages over 600 million, and I have thousands of clients across all corners of the globe, and after this update, no one is more surprised than me.

I've watched all the videos on YouTube, the same ones that you probably have, and I hear it from new incoming clients every single day across all of my businesses. And I'm surprised because nobody is giving a databacked solution to why your rorowaz is tanking, and to why your CPA is rising. and most importantly why you can't scale your business profitably with Facebook ads like you used to before this Adromeda update because the game has changed which brings me to step number one in fixing this.

Adromeda is not a bad update. You just don't know how to use it to your advantage. The difference between the old way and the new way is very simple. The way your creatives are delivered has completely changed. The old way you used to have multiple variations of the same ad creative. you would just swap out different hooks and you could spend a lot of money on the creative that ended up performing. But now with the latest update, Adromeda wants you to have 100% unique creatives and creatives at scale because the system can now process lots of creative volume and be able to know exactly where to show the creative at what point to get somebody to convert.

This allows you to cover multiple formats and be able to appeal in multiple different ways. And let me show you how you can start implementing this in your ad account right now. So here we are inside of a meta ads manager ad account. And one of the things that you'll notice is we're using flexible creatives because in the past you could test multiple different ads with different variations and Meta would select the winner.

But now with the latest update you can batch in up to 10 videos in a single ad creative format. Meaning you can have those 10 videos inside of this one ad and Meta is going to test which video will perform best. And the ways that you can do this is you can take 10 of your best review images and put them inside of a flexible and Meta is going to serve all of those different reviews and find out which one works best. So now you can do not only variation testing this way, but you could also even test multiple different formats like having all 10 UGC videos inside of one flexible or you could have all 10 features and benefits inside of one flexible or even images inside of one and videos inside of another.

And what this allows you to do is rather than having hundreds of ads inside of one ad set, you can have a few ads with lots of different creative variations in each, allowing Andromeda to not only pick the best winner, but also serve it based off of which format that somebody needs to see at the right time to be able to convert. So now we're using flexible ad creatives, not just standalone ads. So let me be the first to draw a line in the sand.

Adrama is not a bad update. You as a marketer just need to understand how to use it to your advantage whenever you're doing creative testing. Which brings me to step number two. What you were previously taught was to take your winning ad and create slight variations around that ad and then run those ads as you scale. But under Adromeda, the system isn't just choosing one ad, but instead it's matching different ad concepts with different micro audiences.

This system is now actively looking for fundamentally different concepts. And if you don't provide that diversity to Meta's AI, it'll have nothing to work with. This is by far one of the biggest reasons why you previously got a 3 to four or 5x return in ad spin, and now you can barely get Meta to spend $1 to get $2 back. So, when I'm looking at ad creatives in this new Metadromeda era, this is what I'm looking for inside of an ad account.

So, here we are inside of an ad account. And what I'm going to show you is now you can have multiple ad creative formats. We're quite literally running 14 ads inside of an ad set. You no longer need just a few variations and can get away with two to three, even five creatives. Adama can now process lots of creative volume. But what's very important here and what to notice is is that each of these creatives are 100% unique.

We have an us versus them comparing one product against another. And then we have a problem solution video which is we are tired of XYZ. And then we have another one which is the three hairstyles of this which is three reasons why which helps more discovery. And then we have an unboxing video which is showing the process of what it's like to unbox this product. And the reason this works is is because Andromeda is able to recognize each of these formats and know when to show these at the right time.

It will quite literally identify what point the buyer is in the journey. meaning if they've never heard of this product, they're going to show your discovery and educationbased ads on how the product works first. And then they're going to show the ad creative that actually highlights the problem. And then they're going to show what it's like to experience the product through a review and then what it's like to unbox it.

And by that point, Andromeda's identified that they've moved the buyer through that stage and now they're warmed up to be able to purchase. And this is what is allowing people to get that high return on ad spend with the latest Andromeda update. So what you want to focus on is is not only high creative volume but 100% unique creative formats through each of these adsets. My third point is controversial and needs to be addressed.

The one campaign method. I've seen this all over YouTube and let me be the first to tell you one campaign does not work. From someone who personally advises on over $200 million in ad spend, let me explain why this doesn't work. When you use a one campaign structure, you give Facebook the freedom to spend your budget however they choose. So, a ton of your budget can be going towards your existing customers. And this is what Meta does to drive down your CPAs and make it look like you're converting.

But here's the problem with this. If you only convert the same customers over and over, you're going to exhaust your audience and your CPAs will start to climb dramatically. And to give you a real live example of what this looks like, most people whenever you look at your audience segments and have this turned on, you'll be able to see the existing customers that are coming from your ads and then the new audience. And when you leave Meta to be able to decide based off of this one campaign, one audience, it will start to spin your budget however it believes it should.

And in a lot of cases, Meta will start to push all of that towards existing customers because they know lowhanging fruit is there. And as you can see, we have a majority of our sales coming from people that have already bought from us in the past, which isn't driving much new customers for us. And although this gives us a really great return on ad spend in the short term, where we're doing a near 4x rorowaz and on existing customers a 7x, what you'll see is very quickly this story changes.

When I go from last 14 down to last 7, we've dropped dramatically all the way down to a 1.8. And this is because Meta's front-loading those results and you're raising your budgets expecting that to carry on and then all of a sudden everything drops. And this is because Meta has been forcefully overexhausting our audience leaving us with a high budget and now no longer any purchases. And so what we need to do to in order to be able to solve this is not just rely on one campaign.

We need to segment and have both creative testing going towards new customers and a separate campaign that is also focused on existing. That way we ensure we have stable performance always bringing in new people. So that way we can continue to scale rather than only relying on the same customer base until we fully exhaust it. So, the right way of being able to do this is having both a creative testing campaign where we can go after new people and also test which new creatives are going to convert most with people that have never heard of us as well as our other campaign which could act as our retargeting for existing customers.

That way, we're not only excluding people who have engaged with our website and have purchased with us in the past in creative testing, but we're also still covering a basis of that by retargeting those individuals. This ensures we're always bringing in new people while we're also converting the people that came in. That allows us to stably scale. Whereas the other way meta can get lost into only going after one audience segment where we're in this constant period of being volatile with our ad performance.

So this is what allows us to stabilize our results. Now, this last step is actually very simple. When you restrict data from Meta's new AI, you are essentially restricting your results. A drama thrives on volume, not restrictions. When you strip away the interest and micro segments, the algorithm taps into micro audiences that you wouldn't be able to normally target. So now what we want to do is go more broad with Advantage Plus and just broad campaigns in general and allow our creatives to do the targeting for us.

So, we'll have high volume of creatives and a few different campaigns, but these are really just broad audiences and advantage plus in meta. We'll know which creatives to serve to which person now based off the latest update. This ensures a simple campaign structure that Adromeda loves. Now, at this stage, you have all the tools to succeed in this postadromeda era with Facebook ads but one. All of this is for nothing if you don't understand how to craft an offer that people simply can't say no to.

And if you want to learn how to craft an offer that is beyond impossible to say no to, then I made this whole video for you right here that walks you through that whole process step by Dab.