Meta has kicked off 2025 with a raft of advertising updates, sharpening its AI-powered Advantage+ suite and adding new tools to support full-funnel performance, both online and in-store.

Underpinning these updates is Andromeda, Meta’s advanced AI system, which now plays a central role in how campaigns are optimised across Facebook, Instagram and Threads. With consumer behaviour increasingly fragmented, Meta is positioning AI as the key to improved relevance, personalisation and cost efficiency.

Here’s what marketers need to know.

Meta’s AI Targeting Gets Smarter with Andromeda

Andromeda powers Meta’s media delivery engine by analysing tens of millions of ads to serve the right message to the right user at the right time. In practice, that means sharper targeting, more efficient spend and better performance across the Advantage+ campaign suite.

While machine learning has been part of Meta’s ad ecosystem for some time, Andromeda marks a step forward in real-time decisioning, fuelled by broader platform-wide insights.

Advantage+ Campaigns: More Flexibility, Better Results

Advantage+ campaigns continue to evolve, with a focus on automation and performance.

Meta has added new functionality to Advantage+ Catalog Ads, allowing advertisers to promote a preferred product set while also letting Meta’s system suggest other relevant products from the catalogue. Early tests show a 14% average uplift in ROAS, with brands in EMEA and LATAM seeing up to a 25% drop in cost per purchase.

Advertisers can now also combine Partnership Ads with Advantage+ Catalog Ads, bringing creator content into conversion-led activity. This enables brands to capitalise on influencer creative without sacrificing optimisation.

Shops Ads: Checkout Journey Simplified

Meta is refining its Shops Ads experience with a new checkout flow. Rather than finalising purchases within the Facebook or Instagram shop, users will be directed to the brand’s website after building a cart.

This shift gives advertisers greater control over the final stages of the customer journey and allows for a more tailored checkout experience. Testing has begun in Australia and Taiwan, with broader availability to follow.

Omnichannel Ads Roll Out Globally

Omnichannel ads, first tested in late 2024, will be available globally by mid-2025. These placements show local store availability alongside digital ads and include map links and discount codes to encourage in-store visits.

For retail marketers, omnichannel formats provide a practical way to connect digital activity with physical store performance. Meta reports a 15% reduction in cost per acquisition and a 12% lift in ROAS for brands using the format. American Eagle saw a 48% improvement in ROAS among 18–24-year-olds using omnichannel ads.

Creative Enhancements: Generative AI and Virtual Try-On

Meta is investing in generative AI to support creative production at scale. Advertisers can now:

• Automatically generate text copy for catalog ads

• Add AI-generated background images to product creatives

• Use virtual try-on to show how clothing looks on different body types via AI-generated models

The goal is to make ads more personalised and relevant, particularly for fashion and lifestyle categories. These tools are still evolving, but they point towards a more dynamic, data-informed creative process.

New Placements: Ads in Notifications

For the first time, Meta will begin testing ads in Facebook notifications. These placements will be limited to users who have previously engaged with a brand or shown interest in similar content.

While not without potential friction, the format provides a new route to re-engagement. Brands should tread carefully and monitor user sentiment, particularly as Meta rolls out the feature in the coming months.

Promotional Tools and CRM Opportunities

Meta is also introducing new tools to support CRM growth:

• Promo code gating: Advertisers can now request email addresses before delivering a promotion or discount. This mirrors in-store lead gen tactics and allows brands to build first-party data directly within Meta’s platforms.

• Site links in Instagram Ads: Already available on Facebook, site links are now being rolled out across Instagram globally. These allow advertisers to highlight multiple landing pages in a single image or video ad. Meta reports a 4.5% reduction in CPA and a 3% increase in click-through rates. Nissan saw a 39% jump in landing page views during European tests.

What It Means for Marketers

Meta’s latest updates are focused on improving full-funnel performance through better targeting, more engaging creative and simplified commerce flows. The expansion of AI-driven capabilities marks a continued shift toward automation, with increased flexibility for advertisers to layer in their own inputs.

Retail and ecommerce marketers in particular stand to benefit from these changes. The combination of in-store integration, AI-powered catalogue optimisation and CRM tools offers greater control and transparency across the purchase journey.

As always, execution will be key. While Meta’s tools continue to improve, advertisers will need to test, iterate and monitor performance closely to fully realise the benefits.

With several updates rolling out globally over the next quarter, there is clear value in getting ahead now to prepare for the mid-year retail push.