TLDR;
- Stop running campaigns with no location targeting. The idea that "broader is better" is a myth that costs businesses a fortune. You're paying to reach low-quality audiences and bots.
- The single most important change you can make is to switch your campaign objective from "Reach" or "Awareness" to "Conversions" (Leads or Sales). This tells the algorithm to find people who will actually take action, not just cheap eyeballs.
- Your Ideal Customer Profile (ICP) isn't a demographic like "women aged 25-40". It's a person with a specific, urgent, and expensive problem. Target their pain, not their postcode.
- The best performing campaigns are structured in a funnel. Prioritise your audiences by starting with hot retargeting audiences (BoFu), then warm engagers (MoFu), before finally moving to cold interest-based audiences (ToFu).
- This article includes an interactive calculator to help you estimate your potential Cost Per Acquisition (CPA) based on location and conversion rates, and a flowchart to help you define a better customer profile.
I see this all the time. A founder or marketer comes to me, completely baffled. "We've got a great product," they say, "so we opened up our Facebook ads to the whole world to get maximum reach. But the results are terrible. Why?" It’s a logical assumption to make. More eyeballs should equal more sales, right? Wrong. In fact, it's one of the fastest ways to burn through your entire advertising budget with almost nothing to show for it.
Here's the uncomfortable truth: when you set your campaign objective to "Reach" or "Brand Awareness," and then remove any location restrictions, you're giving Meta's algorithm a very specific, and very dangerous, command: "Find me the largest number of people for the lowest possible price."
The algorithm, being the ruthlessly efficient machine it is, does exactly what you asked. It scours the globe to find users whose attention is cheap. These are often people in developing countries with lower purchasing power, or worse, bot accounts and click farms. They are the users least likely to click, least likely to engage meaningfully, and absolutely, positively least likely to ever pull out a credit card. You are actively paying the world's most powerful advertising machine to find you the worst possible audience for your product. Awareness becomes a byproduct of having a great product that solves a real problem, not a prerequisite for making a sale. To find actual customers, you must change your approach entirely.
So, Why is My 'Worldwide' Campaign Bleeding Money?
When you go broad, you're not just getting a mix of good and bad traffic; you're actively inviting low-quality interactions. I’ve audited countless accounts where a "worldwide" campaign shows a seductively low Cost Per Click (CPC) of maybe £0.15. It looks great on a spreadsheet. But when you dig in, you find 95% of those clicks are coming from countries where the average income is a fraction of your product's price. The conversion rate is practically zero.
It’s a classic case of quantity over quality. One client was thrilled with a £2 Cost Per Lead from a global campaign. But not a single one of those leads ever responded to a follow-up email or answered a phone call. They were either bots or people who signed up for a freebie with no intention or ability to buy. Compare that to a targeted campaign in the UK where the CPL might be £20. It looks ten times more expensive, but if one in four of those leads becomes a £1,000 customer, your return is massive. The cheap leads were actually the most expensive mistake they were making. Many businesses get good traffic that just doesn't convert, and fixing this means taking a hard look at your ad creative, targeting and landing page alignment.
We've run campaigns for clients where the cost per result varies wildly by region. For signups in developed countries, you might see a CPC of £0.50-£1.50, leading to a Cost Per Acquisition (CPA) of £1.60 to £15. In developing countries, the CPC might be as low as £0.10, but the quality is so much lower that your effective CPA for a *real* customer is infinite, because you never get one. If you dont get your targeting right, you'll find your paid ads campaigns failing for reasons that could have easily been avoided.
Stop Targeting Demographics. Start Targeting Nightmares.
The solution isn’t just to add a country to your targeting. That's step one. The real shift is moving from targeting demographics to targeting problems. Forget the sterile, abstract profile: "Companies in the finance sector with 50-200 employees." This tells you nothing of value and leads to generic ads that speak to no one.
You need to become an expert in your customer's specific, urgent, expensive, career-threatening nightmare. Your Head of Engineering client isn't just a job title; she's a leader terrified of her best developers quitting out of frustration with a broken workflow. A marketing manager isn't looking for 'CRM software'; he's desperate to stop leads falling through the cracks and being shouted at by the sales director. Your Ideal Customer Profile isn't a person; it's a problem state.
Once you've isolated that nightmare, everything changes. Your ad copy stops talking about features and starts talking about feelings. For that Head of Engineering, you don't say "Our platform integrates with Jira." You say, "Tired of your best engineers wasting their time on status updates instead of shipping code? Give them back their flow state." Suddenly, your ad isn't an interruption; it's a lifeline. This is how you create messaging they can't ignore, a message that cuts through the noise because it speaks directly to their pain. You can find out more about how targeting specific user problems works in our guide about targeting problems instead of locations in Google Ads.
THE WRONG WAY
Generic ICP: "SMEs in the tech industry, UK-based"
1. Identify the Pain
What's their biggest FEAR? "My best developers will quit out of frustration."
2. Find the Cause
What causes this fear? "Broken project management and constant interruptions."
3. Discover Their Habits
Where do they look for solutions? "They listen to podcasts like 'Acquired' and follow experts like Gergely Orosz."
THE RIGHT WAY
New Targeting: Interest: 'Acquired FM' + 'Pragmatic Engineer'. Layer with Job Title: 'Head of Engineering'.
When and How Should I Use Location Targeting?
So, we've established that "worldwide" is a terrible idea. The answer is to start with a strategy I call 'Intent Layering'. Location is your base layer, but it's useless on its own. You have to add layers of intent on top to make it work. Start with the countries where you know your customers are, or where they have the highest purchasing power for your offer. For most UK businesses, this means starting with the UK, then maybe expanding to other developed, English-speaking countires like the US, Canada, Australia, and Ireland. The list of countries we often start with for our clients includes places like Germany, Sweden, Netherlands, and Singapore if their offer translates well.
But don't just target "United Kingdom". That's still far too broad. This is where you add the layers:
- -> Interest Layer: Add the specific, problem-aware interests you discovered from your 'nightmare' ICP research. Are they interested in 'Shopify', 'SaaStr', or a specific competitor's software?
- -> Behaviour Layer: Target people who are "Engaged Shoppers" if you're an eCommerce brand, or "Business Page Admins" if you're B2B.
- -> Lookalike Layer: Once you have data, create lookalike audiences from your best customers. A 1% lookalike of your purchasers in the UK is infinitely more valuable than targeting the entire country.
By layering these intent signals on top of your location, you're telling the algorithm not just *where* to look, but *who* to look for. This combination of geographic focus and psychographic precision is what transforms a failing campaign into a profitable one. Many advertisers make the mistake of using broad audience targeting without any additional layers which often leads to wasted ad spend.
How Do I Structure My Campaigns for This?
Okay, theory is great, but how do you actually put this into practice? You need to structure your ad account like a proper sales funnel. I see so many accounts where it's just a jumble of campaigns with no clear strategy. When I audit accounts, I almost always reorganise them into this priority order: BoFu (Bottom of Funnel), MoFu (Middle of Funnel), and ToFu (Top of Funnel).
You start with the lowest-hanging fruit—the people who are already close to buying—and you work your way outwards. This approach is more capital efficient and builds momentum.
- -> BoFu (Highest Priority): These are your hottest leads. People who added a product to their cart but didn't buy, or initiated checkout. You retarget them with ads that overcome objections—maybe a testimonial, a small discount, or a reminder of the benefit. These campaigns should have the best Return On Ad Spend (ROAS).
- -> MoFu (Medium Priority): This is a broader retargeting pool. It includes anyone who visited your website, watched 50% of your video ad, or engaged with your Instagram page. They've shown interest but aren't ready to buy yet. You show them different ads, maybe a case study or a different angle on your product, to nurture them towards the BoFu stage.
- -> ToFu (Lowest Priority, Highest Scale): This is your cold traffic. This is where you use your layered location and interest targeting, and your lookalike audiences. The goal here is to feed the top of your funnel and introduce new people to your brand. This will have the highest CPA, but it's essential for growth.
If you're on a small budget, you can combine BoFu and MoFu into a single "Retargeting" ad set. But the principle remains: talk to different people differently based on how well they know you. Don't show a brand-new prospect an ad begging them to "complete their purchase." It's like proposing on a first date. It just doesn't work. For more tips on fixing underperforming campaigns, check out our ultimate Meta Ads troubleshooting guide.
Okay, I Get It. How Do I Fix My Messy Ad Account?
Let's turn this into an actionable plan. If you've been running a broad, no-location campaign, here's your step-by-step guide to fixing it. Don't just tweak your existing campaign; it's probably been poisoned by bad data. Pause it and start fresh.
Step 1: Change Your Objective. This is non-negotiable. Create a new campaign and set the objective to "Sales" or "Leads" (depending on your business). This single change tells Meta's algorithm to stop looking for cheap impressions and start hunting for people who actually convert. This is the foundation for everything else.
Step 2: Set Your Core Location. In your new campaign's ad set, choose one or a small group of high-value countries. If you're a UK company, start with just the UK. Don't get greedy. Prove the model in one place before you expand.
Step 3: Layer Your 'Nightmare' ICP Targeting. Now, add 3-5 of the most relevant interests you identified from your problem-aware ICP research. Are you selling high-end camera gear? Target interests like "Hasselblad" or "Phase One," not just "Photography." Be specific. The more niche your targeting, the more your ad copy will resonate.
Step 4: Launch a Simple Retargeting Campaign. Create a second campaign, also with a "Sales" objective. This one will be for your BoFu/MoFu audience. Create a custom audience of "All Website Visitors - Last 30 Days". Exclude people who have already purchased. Write a different ad for this audience. Assume they know who you are and remind them why they visited in the first place.
Step 5: Test and Iterate. Let these campaigns run for a few days. Don't panic and change things every five minutes. You need to give the algorithm time to learn. After a week, look at the data. Is your ToFu campaign bringing in new visitors? Is your retargeting campaign converting them? Now you have a baseline. You can start testing new interests in the ToFu campaign or new ad creatives in the retargeting campaign. This is how you build a scalable, predictable advertising machine instead of just playing the lottery. If you find your ads are still not working as they should, our guide on what to do when Facebook ads are not performing as expected can help.
This is the main advice I have for you:
| Element | Old Strategy (The Wrong Way) | New Strategy (The Right Way) |
|---|---|---|
| Campaign Objective | "Reach" or "Brand Awareness". Goal is maximum cheap impressions. | "Sales" or "Leads". Goal is to find users likely to take a valuable action. |
| Location Targeting | Worldwide or very broad regions. No specific focus. | Start with a primary, high-value country (e.g., UK, US). Expand methodically later. |
| Audience Targeting | No specific targeting layers, or very broad interests like "Business". | Layer location with 3-5 specific, problem-aware interests, behaviours, or high-quality lookalikes. |
| Campaign Structure | One or two large, messy campaigns trying to do everything at once. | Separate campaigns for ToFu (cold audiences) and BoFu/MoFu (retargeting). Different messages for each. |
| Measurement of Success | Vanity metrics like Reach, Impressions, or a low CPC. | Business metrics like Cost Per Acquisition (CPA) and Return On Ad Spend (ROAS). |
Why You Might Need an Expert to Paint the Full Picture
Moving away from the "broad reach" myth is the first, and most important, step towards building a paid advertising strategy that actually works. Successful advertising isn't about shouting into the void; it's about whispering the right message into the right person's ear at exactly the right time. It's about precision, relevance, and a deep understanding of your customer's real problems.
While the principles I've outlined—conversion objectives, intent layering, and funnel-based structures—are the foundation of this approach, putting them into practice effectively requires experience. It involves constant testing of audiences and creative, meticulous analysis of data, and knowing when to scale a winner or kill a loser. It's about understanding the subtle nuances of the ad platforms and how to make their algorithms work for you, not against you.
This is where expert help can be invaluable. An experienced consultant or agency can accelerate this process, bypassing the costly mistakes and getting you to profitability faster. We can bring an outside perspective to diagnose issues you're too close to see and implement the advanced strategies that take campaigns from just 'working' to truly 'scaling'. If you're tired of burning cash and want to build a predictable engine for growth, it might be time for a chat. We offer a completely free, no-obligation strategy session where we can audit your current campaigns and provide a clear, actionable plan to improve your results.