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Why Your ROAS Dropped After Meta s Algorithm Change
Description
In episode 3 of Performance Marketing with Fexingo, Lucas and Luna dig into Meta's July 2025 algorithm update that shifted the auction from click-based to value-based optimization. Lucas explains why many DTC brands saw ROAS drop 15-30% overnight, and how one brand — a small supplement company called WellFuel — actually improved performance by switching to a blended attribution model and retraining their pixel on purchase value rather than conversion counts. Luna challenges whether the change is just another Zuckerberg money grab, and Lucas walks through the math of why value-based bidding rewards high-AOV customers differently. They also discuss the hidden impact on retargeting audiences, the death of the 7-day click window for most advertisers, and why the brands that adapted fastest were the ones already using first-party data signals. No fluff — just a concrete look at one algorithm change and what it means for anyone spending ad dollars on Meta in Q2 2026.