The META Algorithm Decoded 2025

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Before we dive in, I just want to mention that what I'm sharing is based on my own observations and what I've gathered from others' thoughts on the algorithm.

Hopefully, this will give you a clearer picture of how it operates.

Anyway, let's dive into the mechanics of what drives Meta Ads.

To run profitable and scalable campaigns, understanding the system is crucial.

Many advertisers mistakenly view Meta’s algorithm as an enigmatic entity, relying on luck by launching ads and hoping for success.

However, by comprehending the algorithm's objectives, you can provide it with precisely what it needs, leading to significantly improved outcomes.

Keep in mind, the algorithm does evolve periodically.

Meta’s Goal (Spoiler: It’s Not Just About You)

Meta’s ad algorithm has one primary job:

👉 To keep users happy and engaged so they spend more time on the platform.

More time on platform = more ad space = more money for Meta.

So when you run ads, the algorithm isn't just thinking:

“How can I get this advertiser the most sales?”

It’s actually thinking:

“How can I show this ad to the right person without annoying them, while still hitting the advertiser’s goal?”

That’s a huge mindset shift.

If your ads feel spammy, irrelevant, or repetitive, Meta will throttle your reach, jack up your costs, or just straight-up stop showing your stuff.

So your job isn’t to outsmart the algorithm, it’s to align with it.

Give it what it wants, and it will reward you.

The Feedback Loop: How Meta Learns in Real Time

The algorithm learns fast.

Here’s how it works:

1. You launch a campaign.

2. Meta starts testing your ads with different users.

3. It watches how people react, clicks, scroll time, comments, saves, shares, even how fast someone hits “back.”

4. It uses that data to decide who else to show your ads to.

This is called the feedback loop, and it’s always running.

The more positive signals Meta gets, the more it expands your reach to similar users. The more negative signals it gets, the tighter your reach becomes and your CPM (cost per thousand impressions) starts rising.

In other words: the algorithm feeds on engagement.

Even if you’re optimising for purchases, it’s still watching everything else that happens on the way there. That means your creative and targeting need to earn attention, not just deliver a pitch.

The Invisible Scorecard (a.k.a. Why Your “Best” Ad Might Flop)

Meta gives every ad an invisible grade based on performance.

It’s not public, but it looks at stuff like:

• Estimated Action Rate – How likely is someone to take the action you're optimizing for?

• User Value – Will this ad make people enjoy their feed more… or less?

• Ad Quality – Does it look spammy or legit?

If your ad gets good grades, you’ll win more auctions, even if you’re bidding less than your competitors. This is key.

👉 Better ads = cheaper results.

That’s why two brands can run similar ads to the same audience and one pays $25 per lead, while the other pays $5.

It’s not just the audience. It’s how Meta feels about your ad.

The Learning Phase: Why the First 50 Conversions Matter

When you launch a new ad set, Meta enters what’s called the Learning Phase.

This is where it’s figuring out who actually responds to your ad.

Until it gets about 50 conversions, the algorithm is basically flying blind. It’s testing different pockets of people to see what sticks.

During this phase:

• Results are volatile.

• Don’t judge too quickly.

• Don’t make too many edits.

If you keep tweaking your ads, you reset the learning and Meta has to start over.

That’s why I always say: launch clean, wait smart.

Give it space to learn, then analyse once you're out of the phase.

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Your Job: Feed the Machine (the Right Way)

So if the algorithm is a machine, what’s your job?

Simple:

Feed it the right ingredients.

Here’s what that means in practice:

• ✅ Write scroll-stopping creative that earns attention fast.

• ✅ Use clear offers that match your objective (and avoid “bait-and-switch” tactics).

• ✅ Pick an optimisation event (like Purchase or Lead) and stick to it.

• ✅ Use audiences that are broad enough to let the algorithm do its thing.

• ✅ Avoid micro-managing. Meta’s smarter than you at finding buyers.

And here’s what not to do:

• ❌ Don’t switch stuff daily. You’ll kill the learning phase.

• ❌ Don’t panic if results are rough for 1-2 days. Let it stabilize.

• ❌ Don’t over-optimize too early. You need real data, not guesses.

TL;DR: Work with the Algorithm, Not Against It

The more you understand the algorithm’s goals, the more you can align your campaigns to win.

Remember:

• Meta wants engaged users.

• You want profitable results.

• The algorithm wants both.

If you create ads that delight users and drive action, you win the game.

Simple. Not always easy. But 100% doable when you play smart.

If you found this useful, I’ve got a 🗃️Meta Ads Guide that breaks this down even further.

If you have any questions about any of this, feel free to reply to this email! I respond to all emails. 🙂

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