Facebook Ads Have Changed Forever (And Nobody Even Knows It)

**SUMMARY**

Chase Chappell discusses the three major shifts in Facebook Ads due to Meta's updates: hierarchical indexing requiring diverse creatives, the prioritization of Advantage+ campaigns, and a faster ads retrieval mechanism for quicker optimization, emphasizing the need for marketers to adapt.

**STATEMENTS**

• Meta now uses a new model for hierarchical indexing, which requires a larger, more diverse creative pool with different concepts.
• The creative testing philosophy of testing one small change at a time is outdated; Meta prefers truly different ad concepts with specific messaging that references audiences.
• Meta's new model can handle high volumes of unique creative and rapidly test them to identify the best performers.
• Advantage Plus campaigns are now prioritized, encouraging users to consolidate campaigns and rely more on Meta's algorithm for decision-making.
• Setting up audience segments to differentiate between new and existing customers helps optimize ad performance and scale new customer acquisition.
• The new ads retrieval mechanism allows for faster optimization, enabling quicker decisions on cutting and launching ads based on performance shifts.
• Leveraging advanced matching in the conversion API and maintaining high matchback ratios (8-10+) on pixel optimization events are crucial for effective optimization.
• Ensuring advanced matching is turned on and the conversion API is activated allows Meta to adapt almost in real time.

**IDEAS**

• The need for 100% unique ads means creating totally different formats, such as before-and-after, features-and-benefits, or review-based creatives.
• Broadening messaging to appeal to different audience cohorts within a target market expands market opportunity and increases the chances of scaling.
• Meta's system now knows which ad format to show first, second, and third based on the lowest resistance path to purchase.
• Consolidating campaigns into fewer, more diverse ones allows the system to pick winners across a broad range of creative assets.
• Testing diverse creative assets helps identify top performers, which can then be migrated to broader audience campaigns.
• Using audience segments to differentiate between new and existing customers helps optimize ad performance and allocate budgets effectively.

**INSIGHTS**

• The shift towards hierarchical indexing and diverse creative approaches necessitates a departure from traditional A/B testing methodologies.
• Understanding and leveraging Meta's prioritization of Advantage+ campaigns is essential for efficient ad spend and optimal results.
• The ability to quickly adapt and optimize ad strategies based on the new retrieval mechanism provides a competitive advantage.
• Advanced matching and conversion API integration are critical for maximizing data and improving ad performance.
• Prioritizing new customer acquisition and tailoring messaging to different audience segments can drive sustainable growth.
• The new updates require a more holistic and data-driven approach to Facebook advertising, emphasizing the importance of continuous testing and optimization.

**QUOTES**

• "The creative testing philosophy of test one small change at a time is dead."
• "The broader your messaging and the more people you can apply and hit in these different cohorts, the faster you'll be able to scale up."
• "Meta no longer needs a week of guessing. It can adapt in almost real time based off these new updates."

**HABITS**

• Launching at least 20 to 30 ads every month to provide the system with a variety of creative options.
• Pumping new creative iterations into creative testing campaigns every week and migrating winners to other campaigns.

**FACTS**

• The speaker advises on over $200 million in ad spend, providing a basis for their insights.
• Meta recently released a feature to set up audience segments.

**REFERENCES**

• Shopify
• YouTube

**HOW TO APPLY**

• Create 100% unique ads with formats like before-and-after, features-and-benefits, and review-based creatives to appeal to different audience cohorts.
• Consolidate campaigns into fewer, more diverse Advantage Plus campaigns, allowing Meta's algorithm to optimize budget and placements.
• Set up audience segments within Meta to differentiate between new and existing customers, tailoring ad strategies accordingly.
• Leverage advanced matching in the conversion API and ensure matchback ratios of at least 8-10% on pixel optimization events.
• Continuously test and optimize ad creatives, making decisions based on performance shifts within 3-4 days.

**ONE-SENTENCE TAKEAWAY**

To thrive in the new Facebook Ads era, embrace diverse creatives, consolidate campaigns, and optimize for new customer acquisition.

**RECOMMENDATIONS**

• Focus on creating a diverse range of ad creatives each month to maximize algorithm optimization.
• Set up and utilize audience segments to differentiate between new and existing customers for targeted messaging.
• Leverage advanced matching and the Conversion API to improve data tracking and ad performance.

**MEMO**

**The New Facebook Ad Landscape**

Meta's recent updates have fundamentally reshaped Facebook advertising, demanding a paradigm shift for marketers. Chase Chappell highlights the critical changes, including the need for diverse creatives, the prioritization of Advantage+ campaigns, and a faster optimization process. To succeed in this new environment, marketers must adapt their strategies to leverage these changes fully.

**Embracing Creative Diversity and Audience Segmentation**

The traditional approach of making minor tweaks to existing ads is no longer effective. Meta's algorithm now favors entirely unique ad formats, such as before-and-after comparisons and review-based testimonials. Furthermore, tailoring messaging to different audience segments within a broad target market is essential for expanding reach and driving conversions. By creating distinct creatives and segmenting audiences, marketers can significantly improve their ad performance.

**Streamlining Campaigns and Leveraging Meta's Algorithm**

With Advantage+ campaigns now prioritized, consolidating multiple campaigns into fewer, more diverse ones is crucial. This approach allows Meta's algorithm to take the reins, optimizing budget allocation and ad placements based on real-time data. Instead of micromanaging every aspect of the campaign, marketers should focus on providing the system with a wide range of creative assets and allowing it to identify the top performers.

**Optimizing Data Tracking for Enhanced Performance**

The new ads retrieval mechanism enables faster optimization, but it requires robust data tracking. Marketers must leverage advanced matching in the Conversion