Meta's Andromeda Update: Why Your E-commerce Facebook Ads Stopped Working

If you're running an e-commerce store in New Zealand and your Facebook ad costs went through the roof in July 2025, you're not alone. I've had dozens of online retailers reach out asking why their previously profitable campaigns suddenly stopped working.

The answer is Meta's Andromeda algorithm update - and most Kiwi e-commerce businesses have no idea what hit them.

As someone who's been managing Facebook ads for New Zealand businesses since 2021, I can tell you this isn't just another small tweak. Andromeda fundamentally changed how Meta's creative recommendation system works, and it's causing major problems for businesses that haven't adapted their strategy.

Let me explain exactly what happened, why your costs skyrocketed, and most importantly - what you need to do to get your profitable campaigns back on track.

What Is Meta's Andromeda Algorithm Update?

Meta announced the Andromeda algorithm update on April 22nd, 2025, but most New Zealand businesses felt the full impact in July when it rolled out to all accounts.

Andromeda is now the first step in Meta's creative recommendation process. It was created to handle the massive increase in ad creatives caused by AI tools - Meta reported seeing 10,000 times more ad creatives than ever before once generative AI became popular.

Here's what this means for your e-commerce business: the old way of creating Facebook ads no longer works.

Before Andromeda (What Used to Work)

• Upload 3-5 product images or videos
• Write one main ad copy
• Let Meta find the best performing combination
• Refresh with new creative when ads got tired

After Andromeda (What Works Now)

• Need 15+ diverse ad creatives per month
• Each ad must have unique messaging throughout
• Focus on different reasons customers buy your products
• Creative diversity is more important than creative quality

Why E-commerce Stores Got Hit So Hard

E-commerce businesses were particularly affected by Andromeda because many were using the same lazy approach: taking product photos, writing generic copy about features, and expecting Meta to do the heavy lifting.

This approach stopped working overnight.

The Numbers Don't Lie

One e-commerce client we work with in Auckland saw their cost per purchase jump from $12 to $47 in July. Their return on ad spend (ROAS) dropped from 4.2x to 1.8x - completely unprofitable.

Another online store in Wellington had to pause all their campaigns because their cost per click doubled while their conversion rate halved.

The businesses that understood Andromeda's requirements and adapted quickly? They're now seeing better results than before the update.

The Two Paths Forward for E-commerce

Based on what we learned helping our e-commerce clients adapt, there are two approaches that work:

Path 1: High-Volume Creative Production (50+ ads per week)

This is what Meta's own case study recommends. They featured an e-commerce company that went from launching 3-4 creatives per week to 50+ per week to maintain their results.

The math: 50 creatives × 4 weeks = 200 new ads per month

Pros:

• Can still use your existing product photos
• AI tools can help create variations quickly
• Less strategic thinking required

Cons:

• Massive time commitment
• Higher creative production costs
• Ads fatigue faster (like "ad fatigue on steroids")
• Constant campaign relaunches needed

Path 2: Strategic Creative Diversity (15+ unique ads per month)

This is the approach we recommend for most New Zealand e-commerce businesses.

Instead of just showing your products, create ads around different reasons people buy from your store.

Example: Online Pet Store

• Ad 1: "Keep Your Dog Healthier" (focus on ingredient quality)
• Ad 2: "Your Dog Will Love the Taste" (focus on palatability)
• Ad 3: "Longer, Happier Life" (focus on longevity benefits)
• Ad 4: "Shinier Coat in 30 Days" (focus on visible results)
• Ad 5: "Fewer Vet Bills" (focus on cost savings)

Each ad is completely unique - different hook, different body copy, different call-to-action - all focused on that specific benefit.

How to Implement Creative Diversity for E-commerce

Step 1: List All Reasons Customers Buy Your Products

Don't just think about features. Think about the emotional and practical reasons people choose your store over competitors:

• Quality/durability
• Price/value
• Convenience/speed
• Status/prestige
• Problem-solving
• Lifestyle fit
• Trust/security

Step 2: Create Unique Ads for Each Reason

Each ad should focus on ONE primary reason throughout the entire creative:

Example: Fitness Equipment Store

_Reason: Convenience_

• Hook: "No more crowded gyms"
• Body: "Work out at home, on your schedule..."
• CTA: "Start your home gym today"

_Reason: Results_

• Hook: "Get ripped in 90 days"
• Body: "This equipment helped Sarah lose 15kg..."
• CTA: "Get your transformation started"

Step 3: Test Different Creative Formats

Don't just use static product photos. Mix in:

• Customer testimonial videos
• Before/after transformations
• Behind-the-scenes content
• User-generated content
• Problem/solution narratives

Step 4: Monitor Performance Differently

With Andromeda, you'll see smaller audience segments responding to specific messages rather than one dominant ad winning everything.

This is actually better - it means you're reaching customers at different stages of the buying journey with relevant messaging.

E-commerce Specific Advantages

The good news for e-commerce businesses is that Meta's AI tools work reasonably well with product-focused ads:

Meta's Advantage+ Creative Tools

• Automatic image variations
• AI-generated backgrounds
• Multiple format creation
• Dynamic product showcasing

Catalog Integration Benefits

• Automated product matching
• Dynamic pricing displays
• Stock availability updates
• Retargeting capabilities

Common Mistakes New Zealand E-commerce Stores Make

Mistake 1: Only Focusing on Product Features

Just listing what your product does isn't enough anymore. You need to explain why that matters to the customer's life.

Instead of: "Waterproof hiking boots" Try: "Keep your feet dry and comfortable on New Zealand's toughest trails"

Mistake 2: Using Generic Stock Photos

Every e-commerce store uses the same type of clean, white-background product photos. Stand out with lifestyle shots showing your products in use.

Mistake 3: Ignoring Social Proof

Customer reviews, testimonials, and user-generated content perform incredibly well with Andromeda's algorithm.