What 53,000 Ads Reveal About Meta’s Andromeda Algorithm

In this episode of the Ecommerce Playbook podcast, Richard Gaffin and Tony Chop analyze data from BFCM (Black Friday, Cyber Monday) to understand how the Andromeda algorithm impacts ad strategies. They discuss the increased volume of ad production, the effectiveness of different bidding strategies (lowest cost, min ROAS, cost cap, highest value), and the performance of static versus video ads. The conversation highlights that while lowest cost bidding drives volume, min ROAS and cost cap strategies acquire higher-value customers. They also find that video ads absorb scale more efficiently due to richer data signals and that UGC (user-generated content) ads have a higher probability of becoming high-spending winners. The hosts emphasize the importance of adapting to the Andromeda era by increasing ad volume, diversifying creative content, and leveraging video and UGC to maximize ad performance.