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How the Facebook ads Algorithm Has Changed in 2024–2025

Jun 27, 2025

You’ve probably heard the term Facebook ad algorithm a few times, but do you really know what it means or how it works?

Facebook constantly updates its algorithm, sometimes once a year, sometimes even more frequently. Each update brings new changes that can significantly affect how your ads are delivered and how well they perform.

In this article, we’ll break down what the Facebook ad algorithm actually is, how it functions behind the scenes, and how it determines which ads get shown to your target audience. We'll also look at how the algorithm has evolved over the years and share the most recent updates in 2025. 

Finally, we’ll answer some of the most common questions advertisers have about how to navigate and adapt to Facebook’s ever-changing ad algorithm.

What Is Facebook Ad Algorithm?

Facebook’s ad algorithm can be simply understood as a computer-controlled logic system that determines which content is shown to users based on their behaviors and interests on the platform. The main goal of this ad algorithm is to personalize the user experience, keep users engaged for longer periods, and ultimately increase ad revenue.

Facebook ad algorithm

It’s fair to say that Facebook’s ad algorithm plays a significant role in how ads are delivered. Therefore, beyond complying with advertising policies, advertisers should also understand how the algorithm works to ensure the success of their campaigns.

Facebook’s ad algorithm is continuously researched and updated to improve user experience and enhance the quality of ad and content distribution. In recent years, the ad algorithm has been integrated with AI to automate certain processes, such as analyzing user behavior and preferences. However, these upgrades have also introduced new challenges for advertisers, as ads are now subject to stricter review processes and more limitations.  

How Does Facebook Ad Algorithm Work?

The Facebook ad algorithm is a complex system that determines which ads to show, to whom, and when all in real-time. Its main goal is to deliver the right ad to the right person at the right moment, while maximizing value for both the advertiser and the user. Here’s how it works, step by step:

Auction System

Every time a user scrolls through Facebook or Instagram, an ad auction takes place. All eligible ads compete for a chance to be shown. But it's not just about who bids the most the ad algorithm evaluates three main factors:

  • Bid (how much you're willing to pay)

  • Estimated action rate (how likely the user is to take your desired action, like clicking or purchasing)

  • Ad quality (based on engagement, feedback, and relevance)

These are combined into a total value score, and the ad with the highest score wins the auction.

User Behavior Signals

Facebook tracks a user’s behavior across its platforms: what they click, watch, engage with, and even how long they pause on content. This data helps predict which ads are most relevant to that individual.

Machine Learning Optimization

Facebook ad algorithm machine learning optimization

The ad algorithm constantly learns from campaign performance. It identifies patterns and optimizes delivery by:

  • Testing different audience segments

  • Rotating creatives

  • Adjusting placements automatically

Campaigns using Advantage+ placements or CBO (Campaign Budget Optimization) benefit from this automation the most.

Conversion Feedback Loop

If you’ve installed the Meta Pixel or use the Conversions API, Facebook tracks actions on your website (like purchases or sign-ups). This data feeds back into the algorithm Facebook ad, allowing it to better target users who are most likely to convert.

Facebook Ad Algorithm Evolution (2020-2025)

From basic interest-based targeting to AI-powered automation, Facebook algorithm for ad has undergone a dramatic transformation over the past five years. In response to rising privacy regulations and rapid advancements in artificial intelligence, Meta has redefined how ads are delivered shifting from manual control to predictive, data-driven systems.

But what exactly has changed each year? And how do these changes impact the way advertisers run campaigns today?

2020: Personalized Advertising

Facebook prioritized user-level personalization by leveraging interests, demographics, and behavioral data to deliver highly targeted ads. This era marked the dominance of pixel tracking and interest-based segmentation, relying heavily on user browsing behavior both on and off the platform.

2021: Integration of Machine Learning

In 2021, Facebook (Meta) introduced machine learning optimizations across campaign objectives. Campaign Budget Optimization (CBO) and Advantage+ features (like Advantage Lookalike, Advantage Detailed Targeting) gained traction, aiming to automate decision-making for better efficiency.

2022: Advancements in AI

Meta’s algorithms advanced further with real-time learning and conversion modeling to adapt to privacy updates like Apple’s iOS 14.5. With less access to direct user data, Facebook increased its reliance on aggregated event measurement and modeled conversions to maintain ad performance.

2023: State of Facebook’s Ad Algorithm

In 2023, the focus shifted to AI-driven automation and improving creative matching. Facebook emphasized Ad Relevance Diagnostics, and its algorithm began to better predict which creatives resonate with which audiences, moving closer to a dynamic content delivery model.

2024: Shift Toward Predictive Optimization

By 2024, Facebook’s ad algorithm heavily leaned into predictive models. Using AI to forecast user behavior and likely conversion paths, Meta refined ad delivery even when direct tracking data was limited. Features like Advantage+ Shopping Campaigns became default for eCommerce, and Conversion API (CAPI) was further pushed as a must-have for accurate tracking. There was also a growing use of AI-generated creative recommendations.

Key Changes:

  • Broader adoption of CAPI

  • Better use of first-party data and CRM integrations

  • Native A/B testing suggestions based on algorithmic predictions

2025: Contextual & Generative AI Integration

In 2025, the Facebook ad algorithm evolved to include generative AI and contextual signals more deeply. 

Facebook ad algorithm AI integration

Without needing detailed user tracking, the algorithm can now:

  • Analyze content themes of posts, videos, and websites users engage with

  • Use Generative AI to recommend or auto-generate ad creatives

  • Optimize placement and message combinations on the fly across placements (Reels, Stories, Feed, etc.)

Additionally, advertisers gain access to predictive audience segmentation, where Meta clusters users into intent-based groups (e.g., “high-intent buyer”, “engagement explorer”) rather than just lookalikes or interests.

Notable Trends in 2025:

  • Generative AI integration into Ads Manager

  • Real-time creative testing using AI variants

  • Algorithm respects privacy-first policies through contextual learning

  • Campaign setup shifts toward full automation with optional overrides

Facebook algorithm FAQs

How does Facebook decide which posts to show?

Facebook analyzes users who have previously interacted with a post and identifies common characteristics among them. It then shows the post to others who share those traits. This analysis includes behavior such as post engagement (likes, comments, shares), and users’ interests based on their activity across Facebook.

Additionally, when you engage with an ad by watching, liking, commenting, or clicking Facebook may begin showing you other ads from the same industry or topic. This is how the ad algorithm expands reach to audiences with similar intent.

Can I change the Facebook algorithm?

You can’t change Facebook’s ad algorithm directly. However, you can influence the types of content shown on your feed. If you stop engaging with certain topics, or choose to hide or report them, Facebook will gradually reduce similar content on your feed.

The same applies to ads: if you stop interacting with them or hide them, Facebook will adjust and show fewer of those types of ads in the future.

How do I reset my Facebook algorithm?

You can retrain Facebook’s algorithm by actively searching for and interacting with the types of content you want to see more of. Use the Facebook search bar to explore topics of interest. The more you engage with specific subjects, the more Facebook will prioritize those in your feed.

Conclusion

The Facebook ad algorithm has a direct impact on how your ads appear to your target audience. Recent updates, especially those powered by AI are changing the game for advertisers, making ad distribution smarter, more personalized, but also more challenging.

If you need help navigating Facebook advertising or want to rent a Facebook ad account, don’t hesitate to contact us.

Author

Luca Marketing Agency

With over a decade of experience in advertising, we specialize in providing high-quality ad accounts and expert solutions for ad campaign-related issues.

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