Oct 20, 2026 · 58 min · 16 segments
“With Andromeda, we can look at the entire universe.” What should marketers focus on now that Meta’s ad algorithm handles targeting? Sukhesh Miryala (Director of Product Management, Meta) sits…
Sukhesh MiryalaGuest
Cody PlofkerHost
I think the ad delivery system consists of first, we are trying to optimize for what outcomes that people want.

So if you really think about it, there's a bid, but that bid consists of a set of value.

And what the value is consisting of is, you know, what outcomes do you want and what's the probability we think those outcomes are going to have? And this is the output, if you think about it.

And that consists of like how much we think is the advertiser, individual advertiser's value.

And then there's another piece of it, which is what we think is the user value of it.

of what advertisers want and how much value we think we'll get from showing a particular ad impression to a user.

But there's also a piece of like, where's the ecosystem? And that is a user quality bit.

But how does that happen? So one is, you know, first, you got to tell me the way I think about it is we how do we calculate this first? And most importantly, you got to tell me who you want to reach.

And that's like if you think about it, the broadest audience classification, people in a certain geography, people, you know, who made purchases like you can you can kind of have a semantic or or language around like which audience.

Most of them you want to like kind of focus on which region or, you know, what are the kind of that's targeting.

And then after you tell me who you want to reach and you got to tell me, you know, what outcomes do you want? And those are like optimization goals.

You guys are nerds about that so we could like talk about it but it's really around like you know what is the how do you value you know what do you want and i think we can talk about like conversions like you want to get a sale or you can talk about value of a sale you have a margin um but then you know those are like on the dtc side there's also different folks that want leads different folks that want you to like install their app or get value of an app or um there's a whole slew of things that we we kind of want to optimize for and then And then if you give me those two, then you got to tell me how much you're going to pay for that, like how much are you willing to value that action that comes through your bid.

And then relatedly is the budget piece, right? Once you tell me the bid, you got to tell me how much, because obviously like the more you want something, like you're going to get, there's a limited set of audiences and we're going to generate, we have to keep going down there.

And then the last piece I would say is the quality factors, which I was telling you, which we would calculate.

I think the ad delivery system consists of first, we are trying to optimize for what outcomes that people want.

So if you really think about it, there's a bid, but that bid consists of a set of value.

And what the value is consisting of is, you know, what outcomes do you want and what's the probability we think those outcomes are going to have? And this is the output, if you think about it.

And that consists of like how much we think is the advertiser, individual advertiser's value.

And then there's another piece of it, which is what we think is the user value of it.

of what advertisers want and how much value we think we'll get from showing a particular ad impression to a user.

But there's also a piece of like, where's the ecosystem? And that is a user quality bit.

But how does that happen? So one is, you know, first, you got to tell me the way I think about it is we how do we calculate this first? And most importantly, you got to tell me who you want to reach.

And that's like if you think about it, the broadest audience classification, people in a certain geography, people, you know, who made purchases like you can you can kind of have a semantic or or language around like which audience.

Most of them you want to like kind of focus on which region or, you know, what are the kind of that's targeting.

And then after you tell me who you want to reach and you got to tell me, you know, what outcomes do you want? And those are like optimization goals.

You guys are nerds about that so we could like talk about it but it's really around like you know what is the how do you value you know what do you want and i think we can talk about like conversions like you want to get a sale or you can talk about value of a sale you have a margin um but then you know those are like on the dtc side there's also different folks that want leads different folks that want you to like install their app or get value of an app or um there's a whole slew of things that we we kind of want to optimize for and then And then if you give me those two, then you got to tell me how much you're going to pay for that, like how much are you willing to value that action that comes through your bid.

And then relatedly is the budget piece, right? Once you tell me the bid, you got to tell me how much, because obviously like the more you want something, like you're going to get, there's a limited set of audiences and we're going to generate, we have to keep going down there.

And then the last piece I would say is the quality factors, which I was telling you, which we would calculate.
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