Hi there,
Thanks for reaching out!
I've had a look at your situation with the ads in York. It's a common problem, people often assume that just because they're targeting a smaller city, the ads should automatically work better or be cheaper, but it's often the opposite. I'm happy to give you some initial thoughts and guidance on this. The issue likely isn't the ad platform itself or some hidden setting you've missed. It's almost always a fundamental disconnect between what you're selling and the specific, urgent problems your potential customers in York are actually facing.
TLDR;
- Stop targeting 'York' as a location and start targeting the specific, career-threatening 'nightmare' of your ideal York-based customer. Demographics don't buy things, people with painful problems do.
- Your offer is the number one reason your campaigns are failing. A generic "10% off" or "Request a Demo" isn't good enough. You need to provide undeniable value upfront, for free.
- The most important piece of advice is to forget about getting a low cost-per-click and instead figure out your Customer Lifetime Value (LTV). This tells you how much you can actually afford to spend to get a good customer, which is usually way more than you think.
- We've included a fully interactive LTV calculator in this letter to help you figure out your own numbers and change your perspective on ad spend.
- Your ad copy needs to speak directly to local pain points. Generic messaging gets ignored; hyper-local, problem-focused messaging gets clicks.
Your ICP is a Nightmare, Not a Demographic
Right, let's get straight to it. The first and biggest mistake I see people make, and you're probably doing it too, is thinking of their target audience as a demographic. "People in York," "Businesses in YO1 with 10-50 employees." This is utterly useless. It tells you nothing of value and leads to the kind of generic, wallpaper ads that everyone ignores.
You need to stop defining your customer by *who* they are and start defining them by their *pain*. You need to become an obsessive expert in their specific, urgent, expensive, and maybe even career-threatening nightmare. Your Ideal Customer Profile (ICP) isn't a person; it's a problem state.
Let's make this real for York. Your 'ICP' isn't just a job title.
-> They're the owner of a boutique shop in the Shambles, terrified that another rise in business rates combined with the summer tourist dip will be the final nail in the coffin.
-> They're the Head of Operations at a logistics firm out by the A64, losing sleep because their outdated software is causing delivery delays and costing them their biggest contract.
-> They're a new parent in Clifton Moor, overwhelmed and desperate for a reliable local service that can give them just a few hours of their life back each week.
See the difference? We've gone from a sterile data point to a real human with a real, emotional problem. That's who you're selling to. The pain is what motivates them to act, not the fact they live within the city walls.
So how do you find this nightmare? You do the hard work that your competitors can't be bothered with. You talk to your existing customers. Ask them what was going on in their business or life that made them search for a solution like yours. What was the tipping point? Read local forums, the comments section of the York Press, or local Facebook groups like 'York Business Networking'. What are people complaining about? What are their frustrations? This intelligence isn't just data; it's the entire blueprint for you're marketing strategy. You have to do this work first, or you have no business spending another single pound on ads.
I'd say you need to fix your offer first...
Now we get to what is almost certainly the main reason your ads are failing: your offer. I haven't seen it, but I can guess. Is it a "Free Consultation," "Request a Demo," or "10% Off Your First Order"? If so, you're asking a complete stranger, who doesn't know or trust you, to give up their time or money based on a vague promise. It's arrogant, it's high-friction, and it positions you as just another commodity.
The number one reason campaigns fail is a weak offer meeting an audience that doesn't have a burning need for it. A lack of demand. I've seen so many founders build what they think is a perfect product, only to find that nobody really cares. Your offer's only job is to deliver a moment of undeniable value—an "aha!" moment that makes the prospect sell *themselves* on your solution. It has to solve a small part of their nightmare, for free, right now.
Let's look at what a strong offer looks like. It focuses on a specific audience, identifies their urgent problem, and provides a clear, tangible solution.
I remember one client, a video production company. They weren't just selling "brand films." That's a commodity. They identified their ideal client: really talented local professional services firms (like architects or solicitors) who were brilliant at their job but struggled to communicate their value and attract new clients. The *nightmare* was being the best-kept secret in town. Their offer wasn't a "free consultation." It was a "1-Day Filming Process" that resulted in a "Client-Winning Case Study Video." It had a name, clear deliverables, and a defined timeline. It made a complex service feel simple, tangible, and less risky to buy.
You need to do the same. Delete the "Request a Demo" button. It's the most arrogant Call to Action in marketing. Instead, bottle your expertise into something that provides instant value.
-> For a B2B service in York: Don't offer a "consultation." Offer a "Free York Local SEO Health Check" that automatically analyses their website and shows them the top 3 keywords their competitors in York are ranking for.
-> For a SaaS product: The gold standard is a free trial, no credit card required. Let them use the product and feel the transformation. For us, we offer a free 20-minute strategy session where we audit failing ad campaigns. This shows our expertise without asking for anything in return.
-> For a B2C service: Don't offer "10% off." Offer a free guide on "The 5 Biggest Mistakes York Homeowners Make When Hiring a [Your Service]."
You must solve a small, real problem for free to earn the right to solve their whole problem for a price. Here's a way to think about it:
1. Identify the Nightmare
What specific, urgent pain is your York-based ICP experiencing?
2. Bottle Your Expertise
What small piece of that problem can you solve for free with a tool, guide, or checklist?
3. Create the Value-First Offer
Build the asset and make it the primary Call to Action on your landing page.
4. Bridge to Paid
After they get value, make your main service the logical next step.
You probably should understand the uncomfortable maths of local ads...
The next thing we need to fix is your mindset about cost. The real question isn't "How low can my Cost Per Lead go?" but "How high a CPL can I *afford* to acquire a truly great customer?" The answer is found in its counterpart: Customer Lifetime Value (LTV).
Most small businesses have no idea what a customer is actually worth to them over the long term, so they panic when they see a £20 or £50 lead cost. But that lead could be worth thousands. You need to do the maths. This is non-negotiable.
It breaks down like this:
1. Average Revenue Per Account (ARPA): What do you typically make from a customer each month?
2. Gross Margin %: What's your profit margin on that revenue?
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 local IT support company in York.
- Your average client pays you £400/month (ARPA).
- Your gross margin is 70%.
- You lose about 2% of your clients each month (Churn Rate).
LTV = (£400 * 0.70) / 0.02
LTV = £280 / 0.02 = £14,000
Suddenly, things look very different. Each customer is worth £14,000 in gross margin over their lifetime. A healthy LTV to Customer Acquisition Cost (CAC) ratio is at least 3:1. This means you can afford to spend up to £4,666 to acquire a single customer. If your sales process converts 1 in 10 qualified leads into a paying customer, you can afford to pay up to £466 per qualified lead.
That £50 lead from Google Ads that you thought was expensive now looks like an incredible bargain, doesn't it? This is the maths that unlocks intelligent, aggressive growth. It frees you from the tyranny of chasing cheap, low-quality leads. Use the calculator below to figure out your own numbers.
Estimated Customer Lifetime Value (LTV)
£14,000Affordable Cost Per Lead (at 10% Lead-to-Customer Rate): £467
We'll need to look at a message they can't ignore...
Only now, once you know your ICP's nightmare, have a killer offer, and understand your numbers, can you start thinking about the ads themselves. Your ad copy's job is to stop the scroll and speak directly to their pain. No more generic feature lists or bland statements.
I like using two simple frameworks for this: Problem-Agitate-Solve (PAS) and Before-After-Bridge (BAB).
Problem-Agitate-Solve: You state the problem, poke the bruise to make it hurt more, then present your service as the solution.
Example for a York-based web design agency targeting local retailers:
(P) Is your website getting buried by the big online giants, even from local shoppers?
(A) You're seeing footfall drop on Coney Street while your online traffic flatlines. Every sale lost to Amazon is another bite out of your margin, making you wonder how you'll compete next quarter.
(S) We build e-commerce sites for York independents that turn local searchers into loyal customers. Get a free analysis of your site's top 3 conversion killers.
Before-After-Bridge: You paint a picture of their current frustrating reality (Before), show them the desired future (After), and position your product as the thing that gets them there (Bridge).
Example for a local meal-prep service in York:
(Before) It's 6 PM. You're stuck in traffic on the A1079 after a long day, and the thought of figuring out what's for dinner is exhausting. It'll probably be another takeaway.
(After) Imagine coming home to a delicious, healthy, locally sourced meal, ready to heat and eat. You have your evenings back, you're eating better, and you're supporting local producers.
(Bridge) Our weekly meal delivery service is the bridge. Get 25% off your first week's box.
The key here is being specific and local. Mentioning local landmarks, streets, or shared frustrations makes your ad feel like it's from a neighbour, not a faceless corporation. This is you're secret weapon against the national players.
You'll need to rethink your targeting strategy...
Finally, let's talk about the buttons you actually press in the ads manager. Simply dropping a pin on York and setting a 10-mile radius is lazy and inefficient.
On Google Ads, you need to think about intent. Don't just bid on broad terms like "accountant in York." This will attract people just browsing. Instead, focus on high-intent, long-tail keywords that signal an urgent need. For example:
-> "emergency accountant for late tax return York"
-> "small business bookkeeping services near Bishopthorpe Road"
-> "how much does an accountant cost in YO24"
These searches are made by people with a problem that needs solving now. They're pre-qualified. The volume is lower, but the lead quality is infinitely higher.
On Meta (Facebook/Instagram), this is where your ICP research pays off. Instead of broad interests like "small business," get granular and local:
-> Target people who have liked the Facebook page of the 'York & North Yorkshire Chamber of Commerce'.
-> Create an audience of people who have recently checked in to local business parks like Clifton Moor or Monks Cross.
-> Target people with job titles like 'Director' or 'Owner' who also live in affluent postcodes like YO24 or YO30.
You're layering demographic and geographic data with psychographic and behavioural signals. This is how you find your actual customers, rather than just shouting at everyone in the city.
This is the main advice I have for you:
I know this is a lot to take in, and it's a very different way of thinking about advertising than most people are used to. It's a shift from tactical button-pushing to strategic thinking. I've broken down the main recommendations into a plan for you below.
| Phase | Action | Why It Matters | First Step |
|---|---|---|---|
| 1. Foundation | Define Your ICP's Nightmare & Calculate LTV | This shifts your entire strategy from guessing to making data-driven decisions. It tells you WHO to target and WHAT you can afford to spend. | Call 3 of your best existing customers and ask them what problem they hired you to solve. Use the LTV calculator in this letter. |
| 2. Offer | Scrap Your Current Offer & Build a Value-First Asset | A weak offer is the #1 conversion killer. A high-value, free asset builds trust and qualifies leads automatically. | Brainstorm one small problem you can solve for your ICP and create a simple PDF checklist or guide that addresses it. |
| 3. Messaging | Rewrite All Ad Copy Using PAS or BAB Frameworks | Your ads need to connect emotionally with the ICP's pain. Generic copy gets ignored. Problem-focused copy gets clicks. | Take your top-performing ad and rewrite it using the "Problem-Agitate-Solve" formula with a hyper-local York angle. |
| 4. Targeting | Implement Hyper-Local & Intent-Based Targeting | This stops you from wasting money on irrelevant audiences and focuses your budget only on those most likely to convert. | On Google, find 5 long-tail keywords expressing urgent need. On Meta, find 3 local pages or groups your ICP would follow. |
Executing this kind of strategic overhaul takes time, expertise, and a lot of testing. It's often more than just a quick fix; it's a fundamental change in how you approach customer acquisition. This is where getting expert help can make a huge difference. An experienced eye can spot opportunities you've missed and help you implement these changes much faster and more effectively than going it alone.
If you'd like to chat through how this could apply specifically to your business in more detail, we offer a free, no-obligation 20-minute strategy session where we can dive into your ad account and provide some concrete, actionable advice.
Hope this helps!
Regards,
Team @ Lukas Holschuh