What Meta's Q2 Results Mean For Your Business

Hey Founder,

Did you see that Meta just posted their quarterly earnings? - They had another huge quarter. The headlines will talk about the billions in ad revenue or the rising ad costs, but I wanted to dig into what really matters for us as advertisers, and how we can capitalise on what is changing.

Let me break it down: What I Learned From Meta’s Q2 Results

• Ad revenue hit $47.5B (up 22% YoY). eCommerce was one of the biggest growth engines.

• Conversions improved by 5% on Instagram and 3% on Facebook thanks to Meta’s AI updates. That’s huge, improving conversions amidst a worldwide recession and increased competition shows how much the algorithm is STILL improving results for us.

• CPMs climbed 9%  😱, but impressions grew 11% meaning we are paying more for ads, even while Meta is creating more supply.

• 2M advertisers are already using AI creative tools to generate and adapt assets, from background swaps to instant translations.

• Early tests of omnichannel ads (online + in-store) are showing ~15% cheaper purchases. If you’re in retail, this could be a game-changer later this year.

What This Means for You

In Q2, Meta introduced new personalization enhancements to Andromeda, its AI-powered recommendation model for ads. Andromeda underpins the ad retrieval stage of Meta’s ad system by selecting several thousand relevant ads to serve at any given moment from a pool of tens of millions of potential candidates.

In short the algo is much much smarter than individual media buyers - so the era of micromanaging targeting is already almost over.

We are already starting to see Meta wanting to take more control of copy and creative elements.

Meta’s algorithm is evolving so quickly that resisting automation could lower your performance, so brands that care about visual look or tone could have a fight on their hands.

The brands leaning in and producing more creative assets, feeding Advantage+ with options, experimenting with AI tools are stacking up gains in performance.

The brands clinging to “manual control” are effectively choosing higher CPMs and worse results.

How to Stay Ahead

1. Accept that AI audiences is the baseline now. Whether you like it or not, Meta is using it to decide who sees your ads.

2. Focus on creative velocity. The algo needs fresh inputs to work with. If you aren’t building a pipeline of new content every week, you’re behind.

3. Test AI tools strategically. Don’t hand over your whole brand voice, but do explore background edits, translations, and creative variations to see where they help.

4. Watch omnichannel closely. If you sell DTC and wholesale/retail, this could be one of the biggest unlocks of 2025.

Meta is launching AI features at breakneck speed, and the gains are already flowing to the advertisers who figure out how to capitalise on it, while also carefully watching what actually drives results for their brand.

If you want help making sure you’re set up to benefit from these changes rather than fight against them, [book a free strategy call with me here]. 

x Jessie