Meta's Andromeda Update: How Service-Based Businesses in NZ Can Fix Their Facebook Ads

If you're a service-based business owner in New Zealand and your Facebook ad leads dried up in July 2025, I have some tough news for you. It wasn't seasonal. It wasn't your competition. It was Meta's Andromeda algorithm update - and it hit service businesses harder than anyone else.

I've been managing Facebook advertising for trades, professional services, and consultants across New Zealand since 2021. In my four years of experience, I've never seen an algorithm change impact service-based businesses as dramatically as Andromeda.

Here's what happened: Meta completely changed how their creative recommendation system works, and the approach that worked for service businesses for years suddenly became useless overnight.

But here's the thing - the service-based businesses that understood what changed and adapted quickly are now getting better leads at lower costs than before Andromeda launched.

Let me explain what went wrong, why service businesses were hit so hard, and exactly what you need to do to get profitable leads flowing again.

Why Service-Based Businesses Were Hit the Hardest

Service-based businesses got devastated by Andromeda for one simple reason: they were already using the laziest possible approach to Facebook advertising.

Most New Zealand service businesses were doing this:

• One generic video about their company
• Same "call us today" message for everyone
• Trying to appeal to every possible customer
• Focusing on what they do instead of why it matters

This approach was barely working before Andromeda. After July 2025, it became completely ineffective.

The Wake-Up Call Numbers

Auckland Accounting Firm: Cost per lead went from $23 to $97 in one month Wellington Plumbing Company: Had to pause campaigns when cost per acquisition hit $340 Christchurch Law Firm: Lead quality dropped so low they were getting more tire-kickers than qualified prospects

Meanwhile, the service businesses that adapted to Andromeda's requirements? They're now seeing leads at 40-60% lower costs with much higher quality prospects.

What Meta's Andromeda Algorithm Actually Changed

Andromeda became the first step in Meta's creative recommendation process in April 2025. It was designed to handle the massive increase in ad creatives caused by AI tools.

For service-based businesses, this created a specific problem: your generic, one-size-fits-all messaging stopped working because Andromeda rewards creative diversity and specific messaging.

Before Andromeda

• One main ad creative could work for months
• Generic "we provide X service" messaging was fine
• Broad targeting with simple creative was enough

After Andromeda

• Need 15+ unique ad creatives per month minimum
• Each ad must focus on a specific customer problem or need
• Generic messaging gets buried by more specific competitors

The Two Paths for Service-Based Businesses

Based on our work helping service businesses adapt to Andromeda, there are two approaches that work:

Path 1: High-Volume Creative (50+ ads per week)

This is what Meta recommends, but it's impractical for most service businesses in New Zealand.

The Reality:

• Requires filming 200+ video variations per month
• Most service businesses don't have in-house video teams
• Meta's AI creative tools look terrible for professional services
• Extremely time-intensive for business owners already stretched thin

Path 2: Strategic Message Diversity (15+ unique ads per month)

This is what we recommend for New Zealand service-based businesses.

Instead of creating more generic content, create specific content for different customer situations and motivations.

How to Implement Creative Diversity for Service Businesses

Step 1: Map Out Your Customer Situations

Don't think about what services you offer. Think about the different situations that bring people to you.

Example: Auckland Accounting Firm

• Small business struggling with tax compliance
• Entrepreneur starting their first company
• Property investor needing structure advice
• Business owner facing an IRD audit
• Company wanting to reduce tax legally
• Sole trader overwhelmed by GST returns

Step 2: Create Complete Ads for Each Situation

Each ad should speak directly to one specific customer situation throughout the entire creative.

Example: Accounting Firm - IRD Audit Situation

_Hook:_ "Got a letter from IRD about an audit?" _Body:_ "Don't panic. We've helped 127 New Zealand businesses through IRD audits with zero penalties. Our structured approach means you'll be prepared, compliant, and confident..." _CTA:_ "Book your audit preparation call today"

Example: Accounting Firm - New Business Situation

_Hook:_ "Starting a business but confused about tax structure?" _Body:_ "Choosing the wrong business structure could cost you thousands in unnecessary tax. We'll show you exactly how to set up your company to minimize tax legally from day one..." _CTA:_ "Get your business structure review"

Step 3: Address Different Stages of Awareness

Your potential customers are at different stages of understanding their problem:

Problem Unaware: "5 signs your business structure is costing you money" Problem Aware: "Overwhelmed by tax compliance requirements?"

Solution Aware: "Need an accountant who understands small business?" Product Aware: "Your Company] has saved clients an average of $12,000 annually"

Step 4: Create Industry-Specific Messages

If you serve multiple industries, create specific ads for each sector:

For Retail Businesses: "Retail accounting that actually makes sense" For Trades: "Accounting for builders who hate paperwork"

For Consultants: "Tax strategies for service-based businesses"

Service Business Creative Formats That Work

Unlike e-commerce businesses that can use Meta's AI tools, service businesses need to create custom content. Here's what's working:

1. Problem-Focused Testimonials

"Here's how we helped similar business] solve specific problem]"

2. Educational Content

"5 things every target customer] needs to know about your service]"

3. Behind-the-Scenes Process

"This is exactly how we handle specific customer situation]"

4. Results-Focused Case Studies

"How we specific result] for specific type of client] in timeframe]"

5. Myth-Busting Content

"The biggest misconception about your service] that costs people money"

Common Mistakes Service Businesses Make Post-Andromeda

Mistake 1: Still Using Generic Messaging

"We provide quality service] for all your needs" doesn't work anymore. Be specific about who you help and what problem you solve.

Mistake 2: Talking About Features Instead of Outcomes

Don't say "We offer comprehensive accounting services." Say "We'll save you 10 hours per month on bookkeeping so you can focus on growing your business."

Mistake 3: Not Addressing Customer Fears

Service purchases involve risk. Address common concerns directly: "What if the accountant makes mistakes?" or "How do I know you understand my industry?"

Mistake 4: Using the Same Creative for All Audiences

Your startup clients have different concerns than your established business clients. Create separate ads for each.

Results We're Achieving for Service-Based Clients

Since implementing creative diversity strategies:

Wellington Legal Firm:

• 47% reduction in cost per qualified lead
• 2.1x increase in consultation bookings
• 34% higher client conversion rate

Auckland HVAC Company:

• 52% lower cost per lead
• 68% improvement in lead quality scores
• 28% increase in average project value

Christchurch Marketing Consultant:

• 41% reduction in cost per discovery call
• 3.2x more qualified prospects
• 45% shorter sales cycle

The Service Business Advantage

While Andromeda initially hurt service businesses, it's now creating opportunities: