Solved: Meta Ads Inefficiency and Replacement Options

Hi there,

Thanks for reaching out! It sounds like a frustrating situation to be in, especially when you're new to a role and trying to make a good impression. Suspecting that your current ad setup isn't performing and might be wasting money is a common worry, and you're right to question it. It's often the case that campaigns are left to run without a clear strategy, and that's where things go wrong.

I'm happy to give you some of my initial thoughts and a bit of a framework you can use to assess the situation yourself and figure out the best way forward. It's not always about just replacing someone, but about understanding what 'good' actually looks like so you can make an informed decision.

First, let's figure out if you're actually being ripped off...

Before you make any big decisions, you need to gather some evidence. You don't need to be a Meta Ads expert to spot the warning signs. Most of the time, underperformance isn't down to malice, but incompetence or laziness. The "guy" might just be pressing 'Boost Post' and hoping for the best, which is a surefire way to burn through cash with little to show for it.

Here’s what you should be looking for in the ad account. Think of it as a basic health check:

1. Is there a clear objective for each campaign?
When you look at the list of campaigns in Ads Manager, what are their objectives? Are they set to "Reach," "Brand Awareness," or "Traffic"? Tbh, for most businesses that need to see a return, these are the wrong objectives. You're basically telling Meta to find the cheapest people to show ads to, not the people most likely to actually buy something. As I explain later, this is a classic mistake. You should be seeing objectives like "Leads," "Sales," or "Conversions." If everything is optimised for clicks or views, it's a huge red flag that he's focusing on vanity metrics that don't translate to revenue.

2. What does the reporting look like?
How does he report on performance? Do you get a monthly report that just says "we spent £5,000 and got 500,000 impressions and 2,000 clicks"? That's meaningless. It tells you nothing about the business impact. A professional report should focus on the metrics that matter:

• -> Cost Per Lead (CPL) or Cost Per Acquisition (CPA): How much does it cost to get one new customer or qualified lead?
• -> Return On Ad Spend (ROAS): For every £1 spent, how many pounds in revenue are generated?
• -> Conversion Rate: What percentage of people who click the ad actually take the desired action (e.g., fill out a form, buy a product)?

If you're not seeing these numbers, he's either not tracking them (which is a basic failure) or he's hiding them because they're terrible. Either way, it's not good.

3. Is there any testing going on?
A successful ad account is never static. It's a machine of constant experimentation. You should be able to see evidence of this. Look inside the ad sets and the ads themselves.

• -> Audience Testing: Are there multiple ad sets targeting different audiences? (e.g., one for a lookalike audience, one for an interest-based audience, one for retargeting). Or is it just one massive, broad audience for every campaign?
• -> Creative Testing: Within an ad set, are there multiple ads running with different images, videos, or headlines? Or is it just one ad that's been running for six months? Stale creative is a performance killer. No testing means no learning, and no learning means no improvement. It's the definition of professional negligence in this field.

We've seen campaigns where simply testing different creative formats, like UGC-style videos against static images, has cut the CPA in half. I remember one SaaS client where we reduced their £100 CPA down to just £7 by systematically testing audiences and creatives. If there's no testing, you're leaving a huge amount of money on the table.

To make it easier, here's a quick way to visualise the health of the account. Go through it and see which path you end up on.

Start Here: What is the primary campaign objective?

Is it "Conversions," "Leads," or "Sales"?

YES

Okay. Is he reporting on CPA / ROAS?

Does he actively test audiences & creatives?

YES

Green Flag: The basics seem to be in place. Performance might still be improved, but it's not a disaster.

NO

Red Flag: He's going through the motions but not optimising. This is lazy management.

NO

Huge Red Flag: He's optimising for vanity metrics (clicks, views). You are paying Meta to find non-customers.

You don't have an ads problem, you have a strategy problem...

If you've gone through the checklist and found a lot of red flags, it confirms your suspicion. But the issue runs deeper than just picking the wrong campaign objective. The real problem is a lack of strategy. A good agency or consultant doesn't just run ads; they build a system for acquiring customers profitably and predictably.

This system starts long before you even open Ads Manager. It starts with two things: your customer and your offer.

Your ICP is a Nightmare, Not a Demographic
Forget the sterile, demographic-based profile your last marketing hire made. "Companies in the finance sector with 50-200 employees" tells you nothing of value and leads to generic ads that speak to no one. To stop burning cash, you must define your customer by their pain. You need to become an expert in their specific, urgent, expensive, career-threatening nightmare. Your ICP isn't a person; it's a problem state.

For example, if you sell project management software, your ICP isn't "Managers aged 35-55". It's "The manager who just got chewed out by her boss because a critical project is behind schedule and over budget, and she has no idea why." See the difference? One is a bland demographic; the other is a story filled with emotion and urgency. Your ads need to speak to that second person.

Your Offer Needs to Solve That Pain
Once you understand the nightmare, your offer must be positioned as the ultimate cure. This is where your ad copy and creative come from. You don't sell features; you sell the transformation from a state of pain to a state of relief.

• -> Before: Your AWS bill just arrived. It’s 30% higher than last month, and your engineers have no idea why. Another fire to put out.
• -> After: Imagine opening your cloud bill and smiling. You see where every dollar is going and waste is automatically eliminated.
• -> Bridge: Our platform is the bridge that gets you there. Start a free trial and find your first £1,000 in savings today.

This "Before-After-Bridge" framework is incredibly powerful. It connects your product directly to the customer's pain, making the decision to click a no-brainer. If your current ads are just a list of features, it's no wonder they're not working.

The Conversion Objective Trap
This brings us back to the campaign objective. When you tell Meta to optimise for "Brand Awareness," you are giving the algorithm a very specific command: "Find me the largest number of people for the lowest possible price." The algorithm does exactly that. It seeks out users who are cheap to reach because they're not in demand—they don't click, they don't engage, and they certainly don't buy. You are actively paying Meta to find you the worst possible audience.

A "Conversion" campaign, on the other hand, tells the algorithm: "I don't care how many people you show this to. Find me the specific type of person who is likely to complete this purchase or fill out this form, and I will pay a premium for that action." This is how you find actual customers. Awareness becomes a happy byproduct of making sales, not the other way around.

Campaign Results: Awareness vs. Conversion Objective (£1,000 Spend)

Impressions

250,000

100,000

Clicks

750

1,000

Leads

5

50

Awareness Campaign Conversion Campaign

I'd say you need a proper funnel, not just random ads...

Once your strategy is solid—you know who you're targeting and what you're offering—the next step is to structure the ad account correctly. A professional account isn't just a random collection of campaigns; it's a customer-generating machine built around a marketing funnel.

The funnel has three basic stages:

1. Top of Funnel (ToFu) - Prospecting:
This is where you reach new people who have never heard of you before. The goal is to introduce them to your brand by showing them an ad that speaks directly to their pain point. The audiences you target here are "cold."

• -> Detailed Targeting: These are audiences built using Meta's data on interests, behaviours, and demographics. The key is to be specific. If you sell high-end camera gear, don't target "Photography." Target people interested in "Leica Cameras," "Hasselblad," and followers of specific professional photography magazines. It's about finding niche interests that your ideal customer has, but the average person doesn't.
• -> Lookalike Audiences: This is where it gets powerful. You can upload a list of your existing customers, and Meta will go and find millions of other people who share similar characteristics. A lookalike of your best customers is often the highest-performing cold audience you can build. We had an eCommerce client selling subscription boxes where a 1% lookalike of their purchasers drove a 1000% ROAS.

2. Middle of Funnel (MoFu) - Consideration:
This stage is for people who have shown some interest but haven't taken a key action yet. They might have watched one of your videos or visited your website but left without buying. The goal here is to build trust and educate them further.

• -> Website Visitors: Anyone who has visited your site in the last 30-90 days.
• -> Video Viewers: People who watched a significant portion (e.g., 50% or more) of your ToFu video ads.
• -> Social Engagers: People who have liked, commented on, or shared your posts.

The ads you show this audience should be different. You could show them case studies, testimonials, or a demo of your product in action. You're warming them up for the sale.

3. Bottom of Funnel (BoFu) - Conversion:
This is the final step. These are the hottest prospects, the ones who are on the verge of converting. They've added a product to their cart but not checked out, or they've visited your pricing page multiple times. The goal is to give them a final nudge to get them over the line.

• -> Added to Cart (but not purchased): A classic retargeting audience. You can show them an ad with the exact product they abandoned, maybe with a small discount or a reminder about free shipping.
• -> Initiated Checkout: They were *so* close. These people often just need a reminder or a simple objection handled (e.g., "Questions about checkout? Chat with us now.").

A properly structured account will have separate, long-running campaigns for each of these funnel stages. If your account is just a jumble of short-term campaigns with confusing names, it's a clear sign your current guy doesn't understand funnels.

Audience:

Cold Traffic (Interests, Lookalikes)

Ad Message:

Address their pain point. Introduce the solution.

Audience:

Warm Traffic (Website Visitors, Engagers)

Ad Message:

Show testimonials, case studies, demos.

Audience:

Hot Traffic (Cart Abandoners, Pricing Page Visitors)

Ad Message:

Overcome objections, offer urgency, remind them.

You probably should focus on the numbers that drive profit...

This is probably the most importent part. Even if the account is structured perfectly, if the underlying maths don't work, you're still just burning money. The real question isn't "How low can my CPL go?" but "How high a CPL can I afford to acquire a truly great customer?" The answer lies in its counterpart: Lifetime Value (LTV).

If you don't know your LTV, you are flying blind. It's the North Star metric for all your marketing efforts. It tells you exactly how much a new customer is worth to your business over their entire relationship with you. Once you know that, you can make intelligent decisions about how much you're willing to pay to get one.

Let's break down how to calculate it. You need three numbers:

1. Average Revenue Per Account (ARPA): What do you make per customer, per month (or year)?
2. Gross Margin %: What's your profit margin on that revenue? (Revenue - Cost of Goods Sold).
3. Monthly Churn Rate: What percentage of customers do you lose each month?

The calculation is simple:

LTV = (ARPA * Gross Margin %) / Monthly Churn Rate

Let's run an example. Say you're a SaaS company:

• ARPA = £200/month
• Gross Margin = 85%
• Monthly Churn = 5%

LTV = (£200 * 0.85) / 0.05
LTV = £170 / 0.05 = £3,400

In this example, each new customer is worth £3,400 in gross margin to your business. Now you have the truth. A healthy business model aims for a 3:1 LTV to Customer Acquisition Cost (CAC) ratio. This means you can afford to spend up to £1,133 (£3,400 / 3) to acquire a single customer and still have a very profitable model.

Suddenly, a £50 lead from Meta doesn't seem so expensive, does it? If your sales team closes 1 in 10 of those leads, your CAC is £500, which is well below your £1,133 target. This is the math that unlocks aggressive, intelligent growth. It frees you from the tyranny of cheap, low-quality leads and allows you to focus on acquiring high-value customers. If your current ads guy has never asked you about your LTV or churn rate, he's not a strategist; he's just a button-pusher.

Use the calculator below to get a rough idea of your own LTV. Play around with the numbers and see how improving churn or increasing your average revenue impacts the final value.

Average Monthly Revenue Per Customer (ARPA): £200

Gross Margin: 85%

Monthly Churn Rate: 5%

Estimated Customer Lifetime Value (LTV): £3,400
Recommended Max Customer Acquisition Cost (CAC at 3:1 ratio): £1,133

You'll need a partner, not just a replacement...

So, you've assessed the current situation, you understand the fundamentals of a good strategy, and you know your numbers. The final question is what to do next. If your current guy is failing on all these fronts, then yes, it's time for a replacement. But you don't just want another person to run ads; you want a strategic partner.

Here’s what to look for when you're vetting agencies or consultants:

1. Case Studies are Proof, Not Promises
Any agency can talk a good game. What you need is proof they've done it before. Take a good, hard look at their case studies.

• -> Are they relevant? Have they worked with businesses similar to yours (same industry, same business model)? If you're a B2B SaaS company, an agency that only shows case studies for eCommerce fashion brands is probably not the right fit.
• -> Are the results meaningful? Do they talk about the metrics we've discussed, like ROAS, CPL, and CPA? I remember one campaign for a software client where we generated over 5,000 trials at just $7 each using Meta ads. For another B2B software company, we drove 4,622 registrations at a cost of only $2.38 per registration, also on Meta. These are the kinds of specific, business-focused results you want to see. Vague claims like "increased engagement" are a red flag.
• -> Are they realistic? Tbh, in paid ads, you can't really promise anything. Performance depends on so many factors. If an agency guarantees you a "10x ROAS," run away. A good partner will be honest about the challenges and set realistic expectations.

2. They Ask About Your Business, Not Just Your Budget
On your first call, a great agency will spend most of the time asking you questions, not pitching their services. They'll want to know about your business goals, your ICP's pain points, your LTV, your sales cycle, and your offer. They'll act like a doctor diagnosing a patient before prescribing medicine. A bad agency will just ask "what's your budget?" and immediately start talking about what they can do. This shows they are focused on their revenue, not yours.

3. They Offer a Free Strategy Session or Audit
This is the best way to test their expertise before you commit. A confident, competent agency will be happy to spend 30-60 minutes with you, look at your existing ad account, and give you actionable advice for free. It’s their chance to prove their value. We offer a free initial consultation where we review a potential client's strategy and account together. It's incredibly valuable for them because they walk away with concrete ideas, and it's valuable for us because it shows them the level of expertise they'd be getting. If a potential partner isn't willing to give you a taste of their expertise upfront, it might be a sign they don't have much to offer.

Ultimately, where they are based doesn't matter nearly as much as whether they have the right expertise for your specific business. Don't limit your search geographically; look for the best strategic fit.

I've detailed my main recommendations for you below:

Area of Focus	Actionable Steps to Take	Why It Matters
1. Internal Audit	Review current campaigns for conversion objectives. Check reports for CPA/ROAS metrics. Look for evidence of consistent audience and creative testing.	Gives you concrete evidence to assess the current manager's performance and identifies immediate, basic failures.
2. Define Strategy	Define your Ideal Customer Profile (ICP) based on their biggest pain points. Rework your offer and ad copy using the "Before-After-Bridge" framework.	Shifts your ads from being feature-focused to being problem-focused, which is far more persuasive and effective at grabbing attention.
3. Know Your Numbers	Calculate your Customer Lifetime Value (LTV) using the formula or the interactive calculator provided. Determine your maximum allowable Customer Acquisition Cost (CAC).	This allows you to advertise profitably and make intelligent budget decisions. It's the most importent metric for sustainable growth.
4. Vet New Partners	Insist on seeing relevant case studies with hard metrics (ROAS, CPA). Book free audit/strategy calls to test their expertise. Prioritise partners who ask deep questions about your business.	Ensures you don't repeat the same mistake. You'll hire a strategic partner focused on your business goals, not just a technical button-pusher.

It's a lot to take in, I know. But by breaking it down into these steps, you can move from a feeling of uncertainty to a position of control. You'll be able to have a much more productive conversation with your current guy or, if necessary, confidently find a new partner who can actually help you grow the business.

Hiring an expert isn't just about getting better ad results; it's about buying back your time and peace of mind. A true partner takes this off your plate, provides clear strategic direction, and delivers reporting that connects ad spend directly to business growth. For us, the goal is always to become an extension of our client's team, and that starts with a foundation of trust and proven expertise.

If you'd like to chat through your specific situation in more detail, we offer a completely free, no-obligation 20-minute strategy session where we can take a look at your ad account together and give you our honest assessment. It might be the quickest way for you to get clarity on the right path forward.

Hope this helps!

Regards,

Team @ Lukas Holschuh