Hi there,
Thanks for reaching out! I've had a look at your situation and it sounds incredibly frustrating. Spending months testing with no real traction is enough to make anyone want to give up, especially when you're getting conflicting advice. The good news is, your problem is very common and probably has less to do with the specific campaign structure you're testing (1 adset vs 3 adsets etc.) and more to do with some foundational peices that need sorting first.
I'm happy to give you some of my initial thoughts and guidance. A lot of people focus on the small details of Meta's ads manager, but the real wins come from getting your customer definition, your offer, and your message right. Once those are sorted, the campaign structure becomes a much smaller part of the puzzle.
TLDR;
- Stop obsessing over campaign structure (e.g., 1 ad set vs. 3). This is a micro-optimisation that won't fix a fundamental strategy problem. Your issue isn't in the Ads Manager settings.
- Your Ideal Customer Profile (ICP) is likely too broad. You need to define them by their specific, urgent "nightmare," not just "people interested in fitness." This is the foundation for everything else.
- The "dip" after 3-4 days is completely normal for a small budget. The algorithm finds the easiest conversions first, then cost-per-acquisition (CPA) rises. This isn't a failure; it's a sign you need to understand your numbers better.
- The most important thing you can do is calculate your Customer Lifetime Value (LTV). This will tell you how much you can *actually* afford to pay for a customer, freeing you from the stress of chasing cheap, immediate sales.
- This letter includes an interactive LTV calculator and a funnel diagnostics chart to help you pinpoint exactly where things are going wrong and what you can afford to spend.
We'll need to look at your customer, not your campaign structure...
Right, let's get one thing straight. The endless debate about whether to use one ad set or three, CBO or ABO, 5 ads or 10... it's mostly a distraction for businesses at your stage. It's like arguing about the brand of spark plugs in a car that has no engine. You've been told to test these things, and even had calls with a "meta expert," but it's not working because it's not the real problem. The real problem is you probably haven't defined your customer correctly.
I'd bet your targeting is based on demographics and broad interests. "Women, 25-45, interested in Fitness and Wellness." Sound familiar? This approach is a recipe for burning cash. It tells you nothing of value and leads to generic ads that speak to absolutely no one. To stop wasting money, you must define your customer by their pain. Their specific, urgent, expensive nightmare.
Your Ideal Customer Profile (ICP) isn't a demographic; it's a problem state. In the fitness 'branche', nobody buys a product just because they like 'fitness'. They buy a solution to a frustrating, persistent problem. Your job is to become an expert in that nightmare.
Think about it:
- Is your customer a new mum who feels disconnected from her body, can't find time for the gym, and is terrified she'll never feel like 'herself' again? Her nightmare isn't 'needing to exercise'; it's the fear of losing her identity to motherhood.
- Is your customer a 45-year-old office worker with nagging lower back pain who's been told by his doctor to get stronger, but finds gyms intimidating and confusing? His nightmare isn't 'being unfit'; it's the prospect of chronic pain and a future of limited mobility.
- Is your customer a dedicated runner who keeps hitting a performance plateau and getting injured? Their nightmare isn't 'needing to cross-train'; it's the crushing disappointment of another failed attempt at a personal best.
See the difference? These are real, emotional problems. When you understand the nightmare, you can craft a message that cuts through the noise. Forget broad interests. Find the niche podcasts they listen to during their commute, the specific influencers they trust on Instagram, the online communities where they vent their frustrations. That's where you'll find them. Do this work first, or you have no business spending another euro on ads.
Step 1: The 'Who'
Start with a basic demographic, but don't stop here. (e.g., "New Mums, 30-40")
Step 2: The Frustration
What is their biggest obstacle related to fitness? (e.g., "No time for the gym," "Hates her post-baby body")
Step 3: The Deeper Fear
What is the underlying emotional fear or 'nightmare'? (e.g., "Fear of losing her identity," "Feeling unattractive")
Step 4: The Nightmare ICP
Combine them into a powerful statement. (e.g., "Our ICP is a new mum who fears she's lost herself and wants to reclaim her body and confidence without spending hours away from her baby.")
I'd say your offer and message are the real problem...
Once you've identified your customer's nightmare, your entire marketing message changes. You stop selling a 'niche fitness product' and start selling the escape from that nightmare. This is where most ads fail. They talk about features, materials, and specifications. Nobody cares. People care about their problems being solved.
The most effective framework for this is the Before-After-Bridge.
- Before: You paint a vivid picture of their current life. You describe their nightmare in detail, using the exact language they would use. You show them you understand their frustration, pain, and fear.
- After: You show them the dream outcome. A life where their problem is solved. They're confident, energised, pain-free, hitting their goals. You sell the destination, not the airplane.
- Bridge: You introduce your product as the simple, obvious bridge to get them from their 'Before' state to their 'After' state.
Let's apply this to our "new mum" ICP:
Generic Ad (probably what you're running now):
"Introducing the new FitCore Pro! A revolutionary home fitness device made with high-grade steel. Features 5 resistance levels and a compact design. Get yours today for €99!"
This ad speaks to no one and will get ignored. It's all features, no emotion. It doesn't solve a problem.
Before-After-Bridge Ad:
"Feel like you barely recognise your own body after having a baby? Squeezing in a gym session between naps and feeds feels impossible. (Before) Imagine feeling strong, confident, and like 'you' again, all from a 15-minute workout you can do while the baby sleeps. (After) The FitCore Pro is your bridge. It's the simple way for busy mums to reclaim their core strength and energy at home. (Bridge) Tap to see how..."
This ad works because it hooks them with a problem they feel deeply. It sells the emotional outcome, not the physical product. The product is just the mechanism for the transformation. You need to rewrite all of your ad copy and rethink all of your creative to follow this structure. Don't just show the product; show the person in the 'After' state, looking happy and relieved. The product itself is secondary to the feeling it creates.
I've seen this transformation work wonders. One campaign we worked on was for a women's apparel brand that was struggling with generic ads. By shifting their messaging to focus on the confidence and feeling their clothes provided, rather than just the fabric, we helped them achieve a 691% return on their ad spend. It's all about the message.
Bad Ad Copy (Feature-Focused)
"Our fitness product is made from durable materials, has adjustable settings, and is easy to store. It's perfect for a home workout. Buy now and get 10% off."
Good Ad Copy (Pain-Focused)
"Tired of that nagging back pain from sitting all day? Imagine feeling energised and mobile again without spending hours at a crowded gym. Our product is the 10-minute daily routine that targets the root cause of desk-worker pain, so you can get back to living your life."
You probably should rethink your metrics...
Let's address the "dip after 3-4 days". This is one of the most misunderstood things in paid ads, especially with small budgets. What you're seeing is the Meta algorithm working exactly as designed. When you launch a campaign, the algorithm's first job is to find the "low-hanging fruit" – the people in your audience who are cheapest and easiest to convert. For the first few days, it finds these people, and you might even get a sale or two. You feel great.
But that pool of easy wins is small. Once they're gone, the algorithm has to work harder. It has to show your ad to more people, people who are less likely to buy, to find the next sale. This means your Cost Per Acquisition (CPA) will naturally rise. Your campaign "dips" because you're judging it based on the unsustainable performance of the first 72 hours. With a budget of €40-50 a day, this cycle happens very, very quickly. You're not giving the algorithm enough money or time to get past this initial phase and find stable performance.
The real question isn't "Why does my campaign dip?" but "How high a CPA can I afford to acquire a truly great customer?" The answer lies in its counterpart: Lifetime Value (LTV). Until you know this number, you are flying blind. You are making decisions based on fear and short-term panic, not data.
A powerful way to calculate this is using a standard business formula:
LTV = (Average Revenue Per Customer, Per Month * Gross Margin %) / Monthly Churn Rate
Let's break that down:
- Average Revenue Per Customer (per month): What does a typical customer spend with you each month, on average? For a product business, you can estimate this by taking your total revenue in a month and dividing it by your total number of unique customers. Let's say this comes out to €80.
- Gross Margin %: What's your profit margin on that revenue after the cost of goods? Let's say it's 70%.
- Monthly Churn Rate: What percentage of customers do you lose each month (i.e., they don't come back to buy again)? Let's say it's 5%.
Plugging these numbers in gives us an LTV of (€80 * 0.70) / 0.05 = €1,120.
This means each customer you acquire is worth €1,120 in gross profit to your business over their lifetime. A healthy business model aims for at least a 3:1 LTV:CAC (Customer Acquisition Cost) ratio. This means you can afford to spend up to €373 (€1,120 / 3) to acquire a single customer and still have a very healthy, profitable business.
Suddenly, that campaign dip doesn't seem so scary, does it? If the cost rises to €50 on day 5, it's still an incredibly profitable acquisition! You're just not used to thinking this way. Use the calculator below to play with your own numbers. This single calculation will change your entire perspective on advertising.
You'll need a better targeting strategy...
Now that you know your customer's nightmare and what you can afford to pay for them, we can talk about targeting. Your approach of testing broad vs. interests isn't wrong, but it lacks a strategic framework. You should think of your audience in three distinct stages: Top of Funnel (ToFu), Middle of Funnel (MoFu), and Bottom of Funnel (BoFu).
For a new business with a small budget, you should be spending almost all your money on MoFu and BoFu, because these are people who have already shown some interest. Here is how I would prioritise your audiences:
- BoFu (Bottom of Funnel - Hottest Audience): These people are on the verge of buying. You must have campaigns running to this group at all times.
- -> People who have Added to Cart in the last 7-14 days (but not purchased).
- -> People who have Initiated Checkout in the last 7-14 days (but not purchased).
- MoFu (Middle of Funnel - Warm Audience): These people know who you are but aren't ready to buy yet. Your job is to remind them you exist and build more trust.
- -> People who have viewed your product pages in the last 30 days.
- -> People who have watched 50% or more of your video ads in the last 30 days.
- -> All website visitors in the last 30 days.
- -> Your Instagram and Facebook page engagers.
- ToFu (Top of Funnel - Cold Audience): People who have never heard of you. This is where you use the ICP work we did earlier.
- -> Detailed Targeting: Don't use "Fitness". Use interests that align with the specific nightmare. For the new mum, target interests like "Postnatal exercise", followers of specific mummy-fitness bloggers, or brands like "Lululemon" AND "Pampers". You layer interests to get more specific.
- -> Lookalike Audiences: Once you have enough data (at least 100 purchases, but ideally more), this is your most powerful tool. Create a 1% Lookalike audience of your past purchasers. This tells Meta "go find me more people who look exactly like the ones who already gave me money". This almost always outperforms interest targeting. You can also create Lookalikes of your 'Add to Cart' or 'Initiate Checkout' audiences.
With your budget, I would probably structure it like this: one campaign for retargeting (combining MoFu and BoFu audiences) and one campaign for prospecting (ToFu). Put maybe €10-15 a day on the retargeting campaign and the rest on the prospecting campaign where you test your different ICP-based interest audiences and eventually, lookalikes.
Stop testing broad targeting for now. You don't have enough pixel data for Meta's algorithm to figure it out effectively. You need to feed it high-quality, specific data first. Start with your nightmare-focused interest groups, and once you have a steady stream of sales, build your lookalikes from there. This systematic approach is far more effective than randomly testing different structures.
ToFu: Cold Audience
ICP-based Interests, Lookalikes of Purchasers
MoFu: Warm Audience
Website Visitors, Video Viewers, Social Engagers
BoFu: Hot Audience
Added to Cart, Initiated Checkout
And finally, let's look at your website...
Even with the perfect audience and message, your ads will fail if your website doesn't convert. You're paying to get people to your store; if they leave without buying, you've wasted that money. You need to be a detective and figure out where they are dropping off.
Look at your metrics in Ads Manager and your website analytics (like Google Analytics or Shopify Analytics):
- Do you have a low Click-Through Rate (CTR)? (e.g., below 1%)
This means your ad is the problem. Your creative (image/video) isn't stopping the scroll, and your copy (the Before-After-Bridge message) isn't resonating with your target ICP. You need to go back and fix the message. - Do you have a high CTR but very few 'Add to Carts'?
This points to a problem on your product page. The ad did its job, it got them interested. But when they landed on the page, something put them off. It could be:- -> Poor Product Photos: Are they professional? Do they show the product in use by someone who looks like your ICP? Lifestyle photos are crucial.
- -> Weak Product Description: Does it just list features, or does it reiterate the 'After' state and solve their problem? Does it overcome their objections?
- -> Price Shock: Is the price clearly displayed? Is it what they expected? If it's high, do you justify it with value?
- -> Lack of Trust: This is a huge one. Why should they trust a new, unknown store? You need trust signals: customer reviews, testimonials (with photos!), trust badges (secure payment logos), a clear returns policy, and an 'About Us' page that tells your story. Without these, people will feel uneasy and leave.
- Do you get lots of 'Add to Carts' but few Purchases?
The problem is in your checkout process. The most common culprit is unexpected shipping costs. Be transparent about shipping fees upfront. Is your checkout process long and complicated? Can they pay with familiar options like PayPal, Apple Pay, or Google Pay? Make it as frictionless as possible.
Every single one of these drop-off points is a leak in your bucket. Fixing them is just as important as improving your ads. A 1% increase in your website's conversion rate can have a massive impact on your profitability, often more than tweaking your ad campaign structure.
This is the main advice I have for you:
To put it all together, here is a clear plan of action. Stop what you are currently doing, as it's not based on a solid foundation. Instead, work through these steps in order.
| Priority | Problem Area | Actionable Solution |
|---|---|---|
| 1. Foundation | Undefined Customer | Define your Ideal Customer Profile based on their specific 'nightmare' or pain point. Use the flowchart provided to get specific. This informs everything else. |
| 2. Messaging | Generic, Feature-Focused Ads | Rewrite all ad copy and creative using the Before-After-Bridge framework. Focus on selling the emotional transformation, not the product itself. |
| 3. Metrics | Panic-driven decisions based on short-term CPA | Use the calculator to determine your LTV and affordable CPA. Make decisions based on a 3:1 LTV:CAC ratio, not daily fluctuations. This will give your campaigns room to breathe. |
| 4. Targeting | Ineffective, broad targeting | Implement a structured ToFu/MoFu/BoFu approach. Focus budget on BoFu/MoFu first. Use ICP-driven interests for ToFu and build Lookalikes from purchasers ASAP. |
| 5. Website | Leaky conversion funnel | Analyse your site data to find the biggest drop-off points (CTR -> ATC -> Purchase). Systematically improve trust signals, product photos, descriptions, and checkout process. |
As you can see, this is a lot more involved than just testing 1 ad set against 3. But this is the work that actually creates profitable, scalable advertising campaigns. It's not about finding a magic setting in Ads Manager; it's about building a robust marketing system from the ground up.
Implementing all of this correctly takes time, expertise, and a lot of testing. It's not just about setting up an ad and hoping for the best; it's about deeply understanding your audience, optimising targeting, creating compelling ads, and fine-tuning your website. Getting any one of these parts wrong can cause the whole system to fail, which sounds like what you've been experiencing.
That's where professional help can make a huge difference. With years of experience and a deep understanding of this entire process, we can help you implement these strategies correctly from the start, saving you months of wasted time and money. We've turned around countless accounts for eCommerce businesses, including one campaign for a maps & navigation company that achieved an 8x return and generated over $71k in revenue by applying these exact foundational principles.
If you'd like to go over your specific business and ad account in more detail, I'd be happy to offer you a free, no-obligation consultation call. We can walk through your website, your current campaigns, and build a concrete plan to get you on the path to profitability.
Regards,
Team @ Lukas Holschuh