The NEW BEST Way to Analyze Facebook Ads in 2026 (4Pi after Andromeda) — Transcript
Full transcript
- 0:00Tired of pouring money into Meta ads and
- 0:01feeling like you're getting nowhere?
- 0:02You're not alone, and you're not stuck.
- 0:05I get it. It's frustrating, but here's
- 0:07the thing. Meta's algorithm isn't
- 0:10actually a black box trying to take your
- 0:11money, and once you know what to look
- 0:13for, [music]
- 0:14everything changes. In this video, I'm
- 0:16going to show you the four simple
- 0:18metrics that will let you understand
- 0:20exactly what it's doing, so you can quit
- 0:22worrying about why things aren't working
- 0:24and start seeing real, steady growth.
- 0:31Spend isn't just a budget setting. It's
- 0:34the clearest way to see what decisions
- 0:36Meta is making about your ad. Meta sells
- 0:39attention, and attention is precious and
- 0:42fragile. Before your ad earns real
- 0:43spend, it has to pass through two gates.
- 0:45Lattice balances these are experience
- 0:47with advertiser objectives. Basically,
- 0:50should this person see an ad at all? And
- 0:52Andromeda is the filter, choosing which
- 0:54of the millions of ads competing for
- 0:56that impression deserve a real chance to
- 0:59earn distribution. So, when your ad
- 1:01starts earning spend, it's usually
- 1:03because those systems are seeing signals
- 1:05like people stopping their scroll. They
- 1:07watch. They click. They convert. Meta is
- 1:10saying, "Users like this experience.
- 1:13We're going to show it to more people."
- 1:15And that is why ads getting the most
- 1:17spend can sometimes have a slightly
- 1:20worse CPA. Because when Meta is spending
- 1:22higher, it's pushing your ad past the
- 1:23easy conversions and into new, colder
- 1:25people that fill the funnel. Spend is a
- 1:28measure of preference, ranking ads by
- 1:30how well they meet both your business
- 1:32objectives and Meta's, which brings us
- 1:34to the most misunderstood metric in Meta
- 1:37ads.
- 1:42It's easy to see frequency rising and
- 1:43panic and call it fatigue, but frequency
- 1:46doesn't really show fatigue. Frequency
- 1:48is telling you how Meta is using an ad
- 1:50in the funnel. Here's a simple way I
- 1:52want you to think about it. When you're
- 1:54looking at daily frequency, when it's at
- 1:56a 1.05, that means 5% of people saw that
- 2:00ad twice. When your daily frequency is a
- 2:021.95,
- 2:04that means about 95% of people have seen
- 2:07that ad twice. Lower frequency usually
- 2:10means the ad is being used to find new
- 2:13people. Higher frequency usually means
- 2:15Meta is using that to retarget
- 2:17individuals. There are three common
- 2:19reasons your frequency will climb.
- 2:22Number one is that cold audiences don't
- 2:24like the ad. The engagement and
- 2:26conversion signals aren't strong enough.
- 2:28So, Facebook just stops expanding to new
- 2:30people. Number two, you keep resetting
- 2:33the machine. If you're launching too
- 2:35many ads, changing budgets, bids, or
- 2:37audiences, so nothing gets enough stable
- 2:39data. Meta can't confidently find new
- 2:42people, so it leans on the people it
- 2:44already understands. Those two usually
- 2:46show up as high frequency and low spend
- 2:48because the system is protecting the
- 2:50user experience. A third option is an ad
- 2:53that converts really well on warm
- 2:54audiences. In that case, it can still
- 2:57earn spend even with the high frequency
- 2:59because it's doing a great job later in
- 3:02the journey. Remember that creative does
- 3:04the targeting. Frequency is how you can
- 3:07see who's being targeted. So, now that
- 3:09we know what the algorithm wants to do
- 3:11with every impression we buy, we have to
- 3:13know how much those impressions cost and
- 3:15how good they are. Now, brings us to
- 3:18CPM. [music]
- 3:22Your ads aren't only competing against
- 3:24other ads, they're competing against
- 3:26organic content, too. Your friends,
- 3:28creators, memes, whatever. In Meta's
- 3:30business model, where attention is the
- 3:32product, it's in their best interest to
- 3:35show people content they'll engage with
- 3:37and ads for products they want from
- 3:39brands they can actually trust. There's
- 3:41a second factor, too, supply and demand.
- 3:44The audiences closer to buying are often
- 3:46the same audiences your competitors
- 3:47want. So, there's less supply and more
- 3:49demand, that equals higher CPM. But,
- 3:52Meta doesn't just sell impressions to
- 3:54the highest bidder. It's optimizing for
- 3:56the outcome and the experience. Ads with
- 3:59higher quality experiences can earn
- 4:02lower CPMs. And as users get closer to
- 4:05buying, Meta gets more selective about
- 4:07what ads it will show them. It cares
- 4:10about what it can predict will happen
- 4:13after the impression. If your ads create
- 4:16a great user experience, you can often
- 4:18be charged less to reach people more
- 4:21likely to convert, even in competitive
- 4:23audiences. And if your ads create a bad
- 4:25experience, you often have to pay more
- 4:28just to get delivery. Yes, CPM is the
- 4:31cost of attention, but more importantly,
- 4:33it's a read on the quality and
- 4:35competitiveness
- 4:37of that attention.
- 4:42That brings us to the other really
- 4:44important cost metric, cost per result.
- 4:46A lot of people use it to decide whether
- 4:48an ad is good or bad, and honestly,
- 4:49whether they're actually good or bad at
- 4:52the job of running ads. Lower funnel ads
- 4:54can look incredible. Meanwhile, upper
- 4:56funnel ads almost always look worse on a
- 4:58CPA basis because they're doing heavier
- 5:01work earlier. They grab attention, they
- 5:03build intent, and earn trust, and prove
- 5:05authority. A lot of teams optimize by
- 5:08chasing a better CPA and a higher ROAS.
- 5:10What they're really doing is trying to
- 5:11spend as much of the budget as possible
- 5:13at the bottom of the funnel, not by
- 5:15audience, but by how Meta is using their
- 5:18ads, which is a very important
- 5:21distinction. They effectively cut
- 5:23prospecting because it looks expensive.
- 5:25They keep only the ads that close. And
- 5:27so, your CPA drops, and your ROAS goes
- 5:29up, and everybody celebrates.
- 5:31But, then the funnel starts shrinking.
- 5:33Your frequency climbs, your CPMs climb,
- 5:36your CAC climbs, and eventually revenue
- 5:38stalls because you've optimized for
- 5:40efficiency instead of growth. Cost per
- 5:42result is not a measure of how good an
- 5:44ad is. It's a measure of how much that
- 5:46ad contributes to the conversion
- 5:48actually happening. The lower the cost,
- 5:50the less work it probably did because it
- 5:52showed up at the end. And the higher the
- 5:55cost, the more work it might be doing
- 5:57because it's creating demand earlier in
- 6:00the journey. So now that we've covered
- 6:02all the metrics, let's talk about how to
- 6:04put them to work.
- 6:09When you use these four metrics, spend,
- 6:11frequency, CPM, and cost per result to
- 6:13understand how the machine is using your
- 6:15ads, you are conducting a 4PI analysis.
- 6:18Let me give you three of the most common
- 6:20patterns that I look for. Two examples
- 6:23of an ad that is doing its job well, and
- 6:25one huge red flag that tells you what to
- 6:27pause or replace with creative testing.
- 6:31Example number one, a great upper funnel
- 6:34ad prospecting. The spend is above
- 6:36average. It's spending more than the
- 6:37other ads. The frequency is below
- 6:39average. Your CPM is below average
- 6:41compared to your other ads. It's a good
- 6:43attention experience. And the cost per
- 6:45result, it's probably above average, and
- 6:47that's normal. Cost per result can be
- 6:49higher as long as it's not so high that
- 6:52the ad becomes a liability relative to
- 6:54the spend that it's taking. This is the
- 6:56ad that creates a great first touch, and
- 6:58it should set up the ads that come later
- 7:01in the funnel. Example number two is a
- 7:03great lower funnel ad, retargeting and
- 7:05closing. A frequency that's higher than
- 7:07average, a CPM that's higher than
- 7:08average, and a cost per result that's
- 7:10better than average. Spend should be
- 7:13meaningful enough that it actually
- 7:15contributes. We don't want it to spend
- 7:17just enough to get one or two sales a
- 7:18week. It should be the highest spending
- 7:20thing that has a greater than average
- 7:22CPM and frequency. When these ads are a
- 7:24logical second touch to the best
- 7:26prospecting ad, you'll often see them
- 7:28get even more efficient as the funnel
- 7:30fills. Let's talk about the red flag.
- 7:32Expensive results, and the machine still
- 7:35loves it. If an ad has a bad cost per
- 7:37result, but it's still earning a ton of
- 7:39spend, it might be amazing at attracting
- 7:42the wrong kind of attention. It's
- 7:44getting distribution, but it's pulling
- 7:46in people with no intent to buy. So, it
- 7:48becomes a liability to the bottom line.
- 7:51And another version of this same red
- 7:53flag is frequency above average, CPM
- 7:55above average, but the cost per result
- 7:57is no better than the prospecting ads.
- 7:59That usually means the ad appeals to a
- 8:01warm audience, but doesn't convert them.
- 8:04So, it soaks up budget that could be
- 8:06going to an ad that actually improves
- 8:09efficiency and drives sales. Now that
- 8:11you can spot these patterns, the next
- 8:13step is simple. What do you turn off?
- 8:15What do you keep? And what do you test
- 8:17next based on your 4 PI? And that is
- 8:20what we're doing in the action items.
- 8:22Now, I hope you're enjoying watching
- 8:23this video as much as I enjoyed making
- 8:25it. Please go ahead and like and
- 8:26subscribe so you don't miss anything
- 8:27else. If you want to learn more about
- 8:29the 4 PI analysis, if you want to dive
- 8:31all the way into the deep end, we just
- 8:33dropped a brand new course in Disruptor
- 8:35Academy. There's a link right there so
- 8:36you can join. All right, with that being
- 8:38said, let's get back to it.
- 8:44Data is only ever as valuable as it is
- 8:46actionable. So, what actions does a 4 PI
- 8:49analysis tell us to do? There are really
- 8:51only two logical outcomes if you want to
- 8:53make the account better. Outcome number
- 8:55one is optimization by subtraction. This
- 8:57is the simplest one and honestly, it's
- 8:59often the fastest way to scale results.
- 9:01Your goal is to remove an ad that's
- 9:03hurting the system. So, the budget
- 9:05naturally flows to the ads that are
- 9:07actually doing the job. You're scaling
- 9:08the winners without touching the budget.
- 9:10Because remember, we're not trying to
- 9:11find one winning ad to isolate, scale,
- 9:14and abuse until it breaks. We're trying
- 9:16to build the best team of ads that
- 9:19produces a repeatable, stable, and
- 9:21scalable outcome. So, if you're running
- 9:23a lot of ads, maybe more than eight,
- 9:26start here. Find the ads that are taking
- 9:28meaningful spend and have clear red
- 9:31flags and start turning those off.
- 9:33Eliminating the liability is the easiest
- 9:36way to get better. And outcome number
- 9:38two, improve the team by filling the
- 9:41gaps. If you don't have a clear red
- 9:42flag, you don't have a pause stuff
- 9:45problem. You have a coverage problem in
- 9:48the funnel. Here are the most common
- 9:49ways it shows up. First, everything
- 9:52looks fine until you raise budget. And
- 9:54when you scale, CPM, frequency, and cost
- 9:57per results all get worse across the
- 10:00board. That usually means you're not
- 10:02filling the funnel effectively enough.
- 10:04So, your creative testing needs to focus
- 10:06on stronger upper funnel ads. Number
- 10:09two, when you scale, one prospecting ad
- 10:11soaks up all the spend and CPR gets
- 10:13worse and worse. And that's usually an
- 10:15ad people love to watch, but it's
- 10:17attracting the wrong kind of attention
- 10:19at scale. So, the fix isn't more budget
- 10:21tweaks and bidding modifications. The
- 10:23fix is to replace or iterate on that
- 10:26prospecting ad to give the machine
- 10:28better choices. And number three,
- 10:29nothing behaves like a lower funnel ad
- 10:31that can earn spend. So, you don't have
- 10:33a closer. So, you need to test for an ad
- 10:35with a higher frequency, higher CPM, and
- 10:36a better CPR. Something that can convert
- 10:39the warm traffic that you're buying more
- 10:41efficiently. The easiest way to do that
- 10:43is to take a strong prospecting idea and
- 10:45make a second touch version. Same core
- 10:47message, but built for someone who
- 10:49already saw the first ad.
- 10:56Your job isn't to find one winning ad
- 10:59and abuse it until it breaks. Ad fatigue
- 11:02is almost always operator error. Your
- 11:05job is to get ads that are working
- 11:07together so the system stays balanced,
- 11:09profitable, and scalable. Because that
- 11:11balance is what lets you answer the only
- 11:14question that matters. Can I spend more
- 11:16money with a yes? A 4 PI analysis turns
- 11:19your ads manager into a decision engine.
- 11:22So, now you know how to look at all the
- 11:23ads. I got to show you how to test more
- 11:25effectively so you can cover those gaps
- 11:27and scale your account. And that's
- 11:28exactly what this next video does.
- 11:33>> [music]
- 11:40[music]
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