ICYMI: What You Need to Know From the Meta Performance Summit

The Meta Performance Summit last week was a great validation of the priorities we are already focused on at Code3. Over the past few years, many brands have noticed shifts in performance on Meta as a consequence of both data privacy, new campaign types such as ASC, and the evolution of their algorithms and machine learning. During the event, Meta addressed these shifts and provided some solutions to winning in the “new normal” we experience today.

We’re breaking those solutions down into three key categories: Creative, AI, and Measurement. Too long, don't want to read? Check out our quick recap here.

Creative: The New Targeting

In the evolving landscape of Meta, Creative has become the differentiating factor for brands. Advancements in Meta’s automation capabilities have leveled the playing field, making “creative the new targeting,” according to Meta.

Embracing Generative AI

Generative AI is set to revolutionize design and development. By 2026, 70% of the design and development effort for new apps will be significantly altered by Generative AI. This technology is not only changing how brands and marketers create, but also what they can achieve with their creative efforts.

• Video Dominance: Currently, 60% of the time spent on both Facebook and Instagram is dedicated to video content. This trend underscores the importance of video in engaging audiences.
• Creative Testing: Testing new creative at scale is essential. At Code3, we implemented a proprietary approach called SEQUENC3. This allows us to dynamically test creative in a dedicated test campaign with a set budget, only rotating winners into main campaigns. Not only will the winners have a stronger start in BAU since the algorithms rely so heavily on historical information, but we also have confidence they will perform. Meta refers to this as “preheating”. Adding just one new ad to an ad set can reduce CPA by 15%.

Designing for All Placements

Designing ads with maximum auction liquidity in mind is crucial. Reels, for instance, continue to grow in viewership. However, it’s important to design ads not just for Reels but for all placements to maximize reach and effectiveness.

• Impact of Creators: 53% of Instagram users surveyed agree they are more likely to purchase an item if it’s promoted by a creator on Reels.

AI: Simplifying and Enhancing Campaigns

Artificial Intelligence, coupled with Generative AI, is transforming the way we approach content creation and campaign management on Meta. One of the most important messages we heard from Meta at the event was that currently they’ve only announced ~1% of AI advancements they’re planning to research and roll out.

Leveraging AI for Content Creation

AI’s capabilities in generating text, images, audio, and conversations offer endless possibilities for creative automation. By 2026, Generative AI will significantly alter 70% of the design and development effort for new apps.

• Embedded Conversation AI: By 2026, 40% of enterprise apps will have embedded conversation AI, enhancing customer interaction and engagement.

Simplifying Account Structures

Simplifying account structures is key to achieving faster and more efficient results from AI systems.

• Consolidation: Limiting the number of ad sets and consolidating account structures can lead to a 19% lower CPA for ad sets that successfully exit the learning phase.
• Optimizing for Events: Grouping significant edits together and optimizing for events with sufficient volume helps in avoiding the constant restarting of the learning phase.

Measurement: A Cornerstone of Strategy

Consistent and accurate measurement is essential for any successful Meta strategy. Brand lift tests should be a regular part of your program, not a one-time activity.

Advanced Measurement Techniques

Meta has introduced several advanced measurement techniques to help brands understand and optimize their performance.

• Conversion Lift Tests: These now support app, web, and offline conversions, providing a comprehensive view of campaign performance.
• Self-Serve MMM: Meta’s self-serve Marketing Mix Modeling (MMM) is now available to all advertisers, enabling more accurate measurement of marketing effectiveness.

Navigating the “new normal” on Meta requires a strategic focus on creative, AI, and measurement. By embracing the advancements in these areas, brands can set themselves apart and achieve greater success.

At Code3, we are committed to leveraging these insights to help our clients thrive in the evolving digital landscape. Stay ahead by continually testing, simplifying, and measuring your campaigns to unlock new levels of performance and efficiency.