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What’s happening with Meta Ads? Let’s talk about Meta’s $145 billion experiment
June 25, 2026
3 min read

What’s happening with Meta Ads? Let’s talk about Meta’s $145 billion experiment

Spend five minutes scrolling through r/FacebookAds subreddit these days and you'll start to wonder whether marketers are participating in the world's largest advertising platform or a live lottery.  

Posts like this are everywhere:

"My campaign was performing at its best ever — record days on both orders and revenue, 6x ROAS days, 7-day average ROAS of 3.9x. Then the June 12 Meta outage hit and everything fell apart."

And that's just one example.

Across Reddit, LinkedIn, X, and countless marketing communities, advertisers have been comparing notes, sharing screenshots, and trying to make sense of what feels like increasingly unpredictable world of marketing. Since the performance drop that began surfacing in March, and the widely discussed Meta Ads outage in June, frustration has only been rising.

One business owner summed it up this way:

"The level of frustration I have with Meta Ads right now is unreal. I've been running my illustration business for six years. For the first five, everything was incredible. Clients came in smoothly every day. But ever since Andromeda arrived, everything has gone downhill."

Of course, anecdotes aren't evidence.

But when every other advertiser is asking the same question at the same time, it's worth paying attention.

So we did.

We pulled the threads, dug into the data, and tried tracing the frustration back to its source. What we found was something bigger - a company in the middle of a structural crisis, and an ad platform caught in the crossfire.

Meta is spending $145 billion on AI this year. Your ads could be spending around $500 a day and getting nothing back. Yes, these two facts are interconnected.

Let’s talk about how and what to do about it.

Yes, Meta Ads are underperforming and here are the numbers

“For the past 6 days I haven’t made a single sale from meta ads yet my CPC is £0.08 and 6% CTR. The two days before that I had 4 sales per day… what’s going on??”

We’ll tell you just what this redditor is asking.  

In early March 2026, Meta deployed a major update to its AI delivery system. The advertisers woke up to campaigns that looked identical on the settings side but performed completely differently on the results side.  

According to diagnostics, CPMs increased between 15% and 40% across retail, lead generation, and e-commerce accounts in the first two weeks of March alone, with an average ROAS decline of 23% in week one.

Behind the scenes, Meta shifted from auction-based placement optimization, where the system bids for ad placements based on competitive signals, to outcome-based optimization, where the algorithm tries to predict downstream conversions rather than clicks or impressions.  

On paper, it sounded like progress. Why optimize for clicks when you can optimize for actual business results?

The catch was that Meta's new model suddenly became much hungrier for conversion data. Campaigns generating fewer than 50 weekly conversion events lost algorithmic priority almost immediately. So, CPMs went up and performance went down.

Quick fact: The 50-conversion-per-week threshold isn't new. Meta has referenced it for years, but the March 2026 update made it a hard requirement rather than a soft recommendation.  

What made the whole thing so maddening was that advertisers couldn't point to a single mistake. Nobody had launched a questionable creative or had doubled their budget or had suddenly started targeting an entirely different audience.

The campaigns looked exactly the same. But the results most certainly didn't.

Accounts that had spent months steadily improving performance suddenly hit a wall. And when advertisers went looking for answers, Meta's Business Help Center documentation arrived weeks later carrying all the explanatory power of a fortune cookie.

The r/FacebookAds community documented it in real time. One thread which asked for "must and don'ts" on meta got a solitary, powerful reply:

“DO: Avoid using Meta Ads because they're dirty thieves that will take your money, offer no support, steal your money, remove your ability to contact support and ignore your pleas until you go away.
DO NOT: Use Meta Ads because they're dirty thieves that will take your money, offer no support, steal your money, remove your ability to contact support and ignore your pleas until you go away.”

By this point, many advertisers were still trying to make sense of the damage. What they didn't realize was that the algorithm update was only one chapter in a much larger story.

The June 12 outage

June 12, 2026 was the kind of Friday Meta's engineers probably wish had stayed on Thursday.

Starting just before 10 am ET, Facebook, Instagram, WhatsApp, and Messenger went down simultaneously. Users were abruptly logged out and met with authentication errors. Others could open the app but couldn't post, comment, search, or load Stories or Marketplace. Downdetector logged over 130,000 Facebook problem reports by 10 am. Recovery took hours, and it happened unevenly - Facebook came back first, Instagram took the rest of the morning, and the Meta developer status page showed "High Disruptions" across multiple services, including Ads Manager.

For advertisers, the damage wasn't just the hours of downtime. Campaigns that had been in learning phases lost momentum or campaigns that had been performing had their delivery interrupted mid-flight.  

A brand spending $500 per day on Meta effectively must have watched $42 disappear in two hours. At $2,000 per day, it's $167. The clock kept ticking. So did the bill.

And Meta, true to form, said almost nothing. Their spokesperson posted a two-sentence acknowledgment on X and went quiet.

This wasn't a freak occurrence. An analysis of Meta Ads platform reliability covering October 2024 through March 2026 documented more than 60 Meta Ads outages over that period, a frequency that increased 316% from early 2025 to late 2025. Ad delivery failures accounted for 53% of incidents.

For context: Google publishes a 99.9% uptime SLA for its advertising products. Meta publishes nothing. You're just expected to absorb it.

But why did it happen in the first place?

The reason was put to a vague “technical issue”. But that’s just the tip of the iceberg.

Meta is in internal freefall and it's affecting your campaigns

The ‘why’ becomes clear when you realize the people responsible for building, maintaining, and improving Meta's ad infrastructure have been leaving the building.

Meta cut approximately 8,000 jobs in May 2026, roughly 10% of its total workforce. That followed a round of 1,000 cuts in January targeting the Reality Labs unit, and hundreds more in March. Engineering and product divisions absorbed a disproportionate share of the reductions.  

Zuckerberg's internal memo framed it plainly: "Success isn't a given." The company is spending between $125 and $145 billion on capital expenditures in 2026, more than twice its 2025 outlay - to fund its AI buildout. The layoffs are, explicitly, the offset.

So, as it turns out... the morale has collapsed

The numbers from Blind, an anonymous professional network, are striking. Meta's overall employee rating dropped 25% from its Q2 2024 peak, with a 39% decline in its culture rating. That's the kind of internal sentiment shift that precedes a mutiny.

And that’s actually what’s the wind is catching in the Meta offices with employees openly badmouthing executives during livestreams and comparing the work culture similar to that of “Gulag”.

One employee described the  working conditions like this: " [you are] asked to cover more work with less support while their colleagues get laid off, while also trying to avoid the risk of causing SEV1s [serious technical errors] with incautious AI use."

The fact that a rank-and-file employee is naming them in the context of morale and workload is the connective tissue between everything above and what happened on June 12.

Think about what that environment actually looks like in practice. You've cut 8,000 people, disproportionately from engineering. The people who remain are covering the workload of the people who left. They're being pushed to integrate AI tools into infrastructure that was built before those tools existed, under conditions that already produced a data leak when they tried it internally. Morale is at a multi-year low. And every person on the team knows that another round of layoffs is reportedly coming in August.

That is not a workforce optimized for the kind of careful, methodical infrastructure maintenance that keeps a platform serving billions of daily users without incident.  

When Meta attributed the June 12 outage to a vague "technical issue," they weren't lying. But that technical failure didn't happen in a vacuum.      

So, what can you do about your Meta Ads performance drop?

Meta is not going away, it still reaches 3 billion people. It’s ad structure is still more advanced (even in its current state) than most competitors. So, here's how to operate on a platform that's shown it can change on you without warning:

  1. Consolidate campaigns above the conversion threshold: The March 2026 meta ads performance drop made one thing clear: accounts spread thin across multiple campaigns with low conversion volume are the first to get deprioritized. If you're asking yourself "where are the results" and nothing on your end has changed, this is the first place to look. Consolidate into fewer ad sets, concentrate your conversion events, and get above 50 weekly optimizations per campaign before you think about scaling.
  1. Rotate creative faster than feels necessary: Under the current algorithm, creative fatigue hits harder and earlier than it used to. If a creative has been running for more than 5 days without a significant performance signal, replace it. Don't wait for the numbers to fall off a cliff before you act.
  1. Pause during outages, immediately: After the June 12 meta ads outage, advertisers who kept campaigns running through the disruption lost learning data and budget simultaneously. The Meta developer status page is publicly accessible. Check it. If Ads Manager is showing high disruptions, pause and wait. You're not missing a window. Believe us.
  1. Build a measurement layer that doesn't depend on Meta: Every outage scrambles pixel data. Every algorithm update shifts what the system was optimizing for mid-flight. If your entire attribution model runs through Meta's reported ROAS, you're working with numbers that took a serious beating this year. Set up server-side tracking, run a blended MER calculation at the account level, and know what your real numbers are independent of what Meta tells you.
  1. Start treating Meta as a retargeting channel, not a primary acquisition channel: Use Meta for warm audiences, people who've visited your site, engaged with your content, abandoned a cart. Let other channels handle cold acquisition while Meta's infrastructure stabilizes.
  1. Diversify before you need to: Waiting until meta ads stop working to explore meta ads alternatives is the most expensive version of this lesson. Whether that's TikTok for discovery, Google for intent-based acquisition, or email and SMS for owned-channel retention, the time to build those channels is when things are okay, not when they've already broken. Here’s a look at other options:

Platform 

Best For 

Avg. CPM 

ROAS Profile 

Honest Trade-Off 

Google (PMax / Search) 

High-intent buyers, known product categories 

Higher CPC than Meta 

Strong for bottom-funnel 

Higher creative barrier; requires keyword strategy 

TikTok Ads 

Discovery, impulse purchases, under-35 audiences 

$9.16 avg; lower than Meta in most verticals 

Avg ROAS ~1.4x vs Meta's 2.2x 

TikTok discovers, Meta closes - different jobs, different expectations 

Pinterest Ads 

Home, fashion, food, lifestyle 

Underpriced relative to intent quality 

Strong purchase intent, especially for lifestyle categories 

Smaller reach; slower-burn channel 

YouTube Ads 

Brand building, complex or considered purchases 

Premium CPM; strong session length advantage 

Best for LTV-focused brands 

High creative lift; not a quick-start channel 

Email / SMS 

Owned audience; retention and repeat purchase 

Effectively $0 in CPM once list is built 

Highest ROAS of any channel for most merchants 

Requires upfront investment in list building 

The takeaway  

Meta's ad performance drop is a platform stability issue made worse by an organization going through a wrenching, self-imposed transformation.

That's not a situation that gets resolved with a better campaign structure.

You can try diversifying the channel mix, build the list, or run Meta for retargeting if it still pencils out, but stop treating it as load-bearing infrastructure for your business.

The platform will keep running. Whether it'll keep running well is the question nobody at Meta seems to have a confident answer to right now.

meta ads outage, meta ads performance drop, meta ads alternative, Meta ads, Why is my meta ad performance declining

Khizar Mohd

About the author

M Khizar is a writer enjoys making complicated things feel simple. He writes about warranties, ecommerce, and the small details people usually overlook, until they matter. His work focuses on clarity and helping readers make smarter decisions without overthinking it. Outside of work, he enjoys reading, writing personal blogs, and binge eating with friends.

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