Perpetual Traffic – Episode Summary

Podcast: Perpetual Traffic
Episode Title: 2 Big Reasons Why Meta Isn’t Optimizing for Sales Anymore
Date: February 13, 2026
Hosts: Ralph Burns & Lauren Petrullo

Overview

This episode dives deep into a key shift in Meta’s (Facebook/Instagram) ad optimization: Meta no longer primarily optimizes campaigns for sales. Instead, the platform gives priority to leading indicators like hook rate and hold rate to determine which ads get the most reach and spend. Ralph and Lauren discuss the implications for digital advertisers and how marketing teams must adjust their strategies, focus, and metrics to stay effective and competitive.

Key Discussion Points & Insights

1. The New Reality: Meta Isn't Chasing Sales Anymore

• Meta’s algorithm (GEM/Andromeda Lattice) now evaluates ad effectiveness based on user engagement and content quality, not just conversions.
• The ad’s main job is to capture attention, build trust, and move qualified buyers further into the funnel—not do all the selling.

“Meta is not just optimizing for your sales. Like, it’s not an ATM... What is the responsibility of the ad itself? On Meta, or any platform, it's to curate the ideal audience.” – Lauren (06:47)

2. Focus on Leading Indicators: Hook & Hold Rates

• Hook Rate: The percentage of viewers who watch the first 3 seconds of a video (3-sec views / impressions).
• Hold Rate: The percentage of those initial viewers who continue watching to 15 seconds (15-sec views / 3-sec views).
• Meta delivers more impressions and spend to creatives with higher hook and hold rates.

"If you are below a 25% hook, your ad is probably being sent down to the minor leagues. 30% and higher is great." – Ralph (00:04)
"Hook people in. We always talk about the hook. It’s the first three seconds." – Ralph (17:23)
"A strong hold, super strong hold rate is 40% to 50%. Low hold rate is anywhere between 20 and 30%." – Ralph (23:35)

• Practical Benchmarks:
  • Hook Rate: 25% is the minimum, 30–40% is excellent.
  • Hold Rate: Aim for >30%; 40–50% means your creative strongly retains attention.

3. Creative Diversification & Video First Strategy

• Video creatives (especially UGC and creator-driven) are outpacing static images for top-of-funnel engagement.
• All asset types (video, static, carousel) work in concert—static images may get attributed with conversion, but video is what gets prospects interested.

"Performance weight is video because that is top of funnel... The conversion, like the last click conversion, is typically more sales or product focused, but all of the consumption, all those other leading indicators, are telling you these video ads are being consumed." – Ralph & Lauren (12:05, 13:33)

--

4. Don’t Turn Off ‘Non-Converting’ Ads Prematurely

• Ads with strong engagement metrics (even with fewer direct conversions) are vital—they’re often responsible for moving prospects through the funnel.
• Meta’s system will “starve out” underperforming ads (low impressions), but that’s determined by engagement metrics, not sales.

“Stop turning off ads! Because people are turning off ads that don’t have credit to the acquisition, but they could have really strong leading indicators.” – Lauren (24:15)

5. Holistic, Aggregate, and Funnel Thinking

• Marketers should look at performance in aggregate—ads support each other along the funnel rather than seeing success or failure in isolation.
• Modern media buyers need to think like growth strategists and creative studio leads.

“So much of media buying, like we don’t even have media buyers anymore. They’re growth specialists because you have to care about the entirety of the funnel.” – Lauren (10:04)
"You're not a media buyer anymore. You are a growth strategist... utilizing leading indicators that ultimately lead to lagging indicator, which is conversions." – Ralph (37:55)

6. Real-world Example and Practical Advice

• [30:28–34:08] Ralph walks through a live Meta Ads Manager account:
  • Custom columns for Hook and Hold Rate now available, no need for manual calculations.
  • Demonstrates a top-of-funnel video ad with a 46% hook rate and 18% hold rate. Iterative advice: aim for earlier product demo in video to improve hold.
  • Emphasizes the role of video in initial engagement and the importance of creative testing and adaptation.

7. Meta’s Ultimate Objective: Time on Platform

• Meta optimizes for retention and engagement both in ads and organic, as these metrics are crucial for its business model (more time on platform = more ad revenue opportunities).
• Sales are important, but Meta’s algorithms chase engagement first, then conversions.

"Meta’s objective... they want you to make money, but they need people to stay on platform for them to make money." – Lauren (15:51)

Notable Quotes & Memorable Moments

• On metrics:

  “You can’t look at the acquisition in isolation… The ads work in tandem with each other.” – Lauren (10:04)

• On creative:

  “Videos, yeah, absolutely. You can tell a much bigger story… static at least for what we’re seeing is getting all the credit. But the reality is all of the consumption, all of those leading indicators, are telling you these video ads are being consumed.” – Lauren (12:25, 13:33)

• On professional shift:

  "You're not a media buyer anymore. You are a growth strategist." – Ralph (37:55)

• Meta’s new priorities:

  "You have to understand what does Meta want for you to get what you want. What you want is sales. What Meta wants is retention time on app." – Lauren (16:07)

Timestamps for Important Segments

• 00:00–06:47: Introduction, context, and the shift in Meta’s optimization focus
• 08:15–12:05: New KPIs for success: Hook and Hold rates; why conversion tracking matters less
• 14:03–16:07: Why Meta wants engagement, not just sales
• 17:23–19:13: Definitions and benchmarks: Hook and Hold Rate
• 21:55–24:15: How to use creative metrics to improve ad performance
• 26:39–34:08: Practical walkthrough in Ads Manager: real dataset, custom columns, actionable insights
• 36:28–37:53: Closing analogies, adapting to Meta’s evolving priorities

Actionable Takeaways

• Monitor and optimize for Hook and Hold Rates, not just conversions or CPA.
• Adopt a video-first approach for top-funnel engagement.
• Analyze ad performance in aggregate—supporting, not just winning, creatives matter.
• Stop immediately killing ads with low conversion—strong engagement drives funnel results.
• Transform your team from “media buyers” to “growth strategists” with a full-funnel mindset.

For resources, case studies mentioned, and further reading, visit perpetualtraffic.com and check out their YouTube channel for visual walkthroughs.