Published on 8/17/2025 Staff Pick

Solved: Wasting Ad Budget on Awareness? (The Real Reason)

Inside this article, you'll discover:

Am struggling to find whats best advertising strategies on top of the funnel in UK so i can get more brand awareness and new customers to my company? Is brand awareness really that important or am I wasting money? and also what offer you think works best to get leads cause i dont know what to offer? I was thinking request demo is good. Also, how do you know how much to spend?

Mentioned On*

Bloomberg MarketWatch Reuters BUSINESS INSIDER National Post

TLDR;

  • Stop thinking about "brand awareness." It's a trap that makes you pay to reach people who will never buy from you. True awareness is a byproduct of making sales to the right people.
  • Your campaign objective should almost always be set to a conversion goal (leads, sales, trials), not 'Reach' or 'Awareness'. This forces the ad platforms to find users who actually take action.
  • Define your ideal customer by their urgent, expensive pain point (their "nightmare"), not by their age, gender, or location. This is the only way to create ads that resonate.
  • Your offer is everything. Ditch the high-friction "Request a Demo" and create something that provides immediate value for free, like an automated tool, a high-value resource, or a free trial.
  • This letter includes an interactive LTV (Lifetime Value) Calculator to help you understand how much you can truly afford to spend to acquire a customer, freeing you from chasing cheap, low-quality leads.

Hi there,

Thanks for reaching out! Happy to give you some of my initial thoughts and guidance on your situation.

You’re asking about the most effective top-of-funnel strategies in the UK to build brand awareness. It's a common question, but honestly, I think it’s the wrong one to be asking. Chasing "brand awareness" as a primary goal is one of the fastest ways for a business to burn through its advertising budget with very little to show for it. I'm going to suggest a completely different way of looking at the problem, one that focuses on attracting actual customers from day one.


We'll need to look at what 'Top of Funnel' really means...

Most people think 'Top of Funnel' or ToFu means casting the widest net possible to make as many people as possible aware of their brand. They set up campaigns on Facebook or Google with the objective set to "Reach" or "Brand Awareness," hoping that if enough people see their name, some will eventually trickle down and become customers. This is a fundamental, and costly, mistake.

Here’s the uncomfortable truth: when you tell an ad platform like Meta to optimise for "Awareness," you are giving it a very specific command: "Find me the largest number of eyeballs for the lowest possible price." The algorithm is brilliant at this. It goes out and finds all the users within your target demographic who are the least likely to click, the least likely to engage, and definitely the least likely to ever buy anything. Why? Because their attention is cheap. Nobody else is bidding for them. You are actively paying the world's most sophisticated advertising machine to find you the worst possible audience for your business.

Real, valuable brand awareness doesn't come from blanketing the internet with your logo. It comes from a competitor's customer switching to your product and telling their friends about it. It comes from solving a real problem so effectively that people talk about you. Awareness is a byproduct of a great product and effective, conversion-focused marketing, not a prerequisite for it. From our experience running campaigns for everything from SaaS to eCommerce, the campaigns that generate the most profit are always, without exception, optimised for a conversion event like a lead, a trial, or a purchase. I remember one campaign for a software client where we generated 5,082 trials at just $7 a pop on Meta Ads—we did that by completely ignoring 'awareness' and focusing only on getting people to sign up.


I'd say you need to define your customer by their nightmare, not their postcode...

So if we're not just spraying ads at everyone, who do we target? This is the next place most businesses go wrong. They create a generic Ideal Customer Profile (ICP) that looks something like "Managers, aged 30-50, living in London, interested in business." This is utterly useless. It tells you nothing of value and leads to bland, generic ads that get ignored.

To stop wasting money, you have to define your customer by their pain. Their specific, urgent, expensive, career-threatening nightmare. Your ICP isn't a person; it's a problem state.

For example, if you sell a project management tool, your ICP isn't "a project manager." It's a Head of Engineering who lies awake at 3 AM terrified that her best developers are about to quit because they're so frustrated with the company's chaotic workflow. She's not browsing Facebook looking for "project tools." She's desperate for a solution to her retention problem.

Once you've identified that nightmare, your job is to find out where that person looks for solutions. What niche podcasts do they listen to on their commute? What industry newsletters do they actually read? What software tools do they already pay for? This intelligence is the blueprint for your targeting. Targeting people who like "HubSpot" or are members of specific SaaS-focused groups on Facebook is infinitely more powerful than targeting people who like "business." You must do this work first.

The Wrong Way: Demographic Targeting

Target:
Managers, 30-50, UK
Interest:
"Business" or "Technology"
Ad Message:
"The Best Project Management Tool"
💸 (Wasted Spend)

The Right Way: Pain-Point Targeting

Nightmare:
Losing top engineers due to chaotic workflows
Channel:
Listeners of 'Acquired' podcast, users of GitHub
Ad Message:
"Stop losing your best devs to workflow chaos."
💷 (Profitable Growth)

A comparison of ineffective demographic targeting versus effective pain-point targeting. Focusing on a customer's specific "nightmare" leads to more relevant ads and better results than targeting broad, generic profiles.

You probably should fix your offer before you spend a penny...

Even with perfect, pain-point targeting, your campaigns will fail if your offer is weak. And the most common point of failure I see in B2B advertising is the offer itself. The "Request a Demo" button is quite possibly the most arrogant, high-friction Call to Action ever invented. It assumes your prospect, a busy decision-maker, has nothing better to do than schedule a meeting to be sold to. It instantly positions you as a commoditised vendor and kills any momentum you might have built.

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 must solve a small piece of their problem for free to earn you the right to solve the whole thing later.

What does a good offer look like?

  • For a SaaS business: The gold standard is a free trial or a freemium plan (no credit card required). Let them use the actual product. Let them experience the transformation. When the product proves its own value, the sale becomes a formality.
  • For a service business: You must bottle your expertise into a tool or asset. For a marketing agency, it could be a free, automated website audit. For a data analytics firm, a free 'Data Health Check' that finds the top 3 issues in their database. For a consultancy like ours, it's a free 20-minute strategy session where we audit a prospect's failing ad campaigns and give them actionable advice.

Your ad copy needs to reflect this value-first approach. Instead of selling a feature, you sell the transformation. Use a framework like Problem-Agitate-Solve. "Are your cash flow projections just a guess? (Problem) Are you one bad month away from a payroll crisis? (Agitate) Get expert financial strategy that turns uncertainty into predictable growth. (Solve)". This is how you get the right people to click.


You'll need to know your numbers to scale properly...

So, you’ve defined the nightmare, you've created a high-value offer, and you're running conversion-focused campaigns. The leads are coming in. But how do you know if it's working? How much should you be paying for a lead? The real question isn’t "How low can my Cost Per Lead go?" but "How high a CPL can I afford to acquire a great customer?"

The answer lies in calculating your Customer Lifetime Value (LTV). This single metric is the key that unlocks aggressive, intelligent growth and frees you from the tyranny of chasing cheap, low-quality leads. Most businesses have no idea what their LTV is, so they operate in the dark, scared to spend what's necessary to acquire the best customers.

Here’s the basic maths:

LTV = (Average Revenue Per Account Per Month * Gross Margin %) / Monthly Churn Rate

Let's use an example. Say you have a subscription business where the average customer pays you £500/month (ARPA), your gross margin is 80%, and you lose 4% of your customers each month (churn).

LTV = (£500 * 0.80) / 0.04
LTV = £400 / 0.04
LTV = £10,000

This means every new customer is worth £10,000 in gross margin to your business over their lifetime. A healthy LTV to Customer Acquisition Cost (CAC) ratio is typically 3:1. This means you can afford to spend up to £3,333 to acquire a single customer and still run a very profitable business. If your sales process converts 1 in 10 qualified leads into a customer, you can afford to pay up to £333 per qualified lead.

Suddenly, that £250 lead from a LinkedIn campaign targeting a CTO doesn't seem expensive anymore, does it? It looks like an absolute bargain. This is the maths that separates businesses that stagnate from those that scale.

Customer Lifetime Value (LTV)
£10,000
Affordable CAC (at 3:1 ratio)
£3,333

Use this interactive calculator to estimate your Customer Lifetime Value (LTV) and how much you can afford to spend on customer acquisition (CAC). Adjust the sliders to see how changes in revenue, margin, and churn impact your numbers. Results are for illustrative purposes only. For a tailored analysis, please consider scheduling a free consultation.

This is the main advice I have for you:

Putting it all together, the path forward becomes much clearer. It's not about finding a magic "top of funnel" strategy. It's about building a systematic, customer-focused acquisition engine. A lot of our work with new clients involves undoing the damage caused by chasing awareness and rebuilding their advertising from the ground up based on these principles. I've detailed my main recommendations for you in the table below which summarises the approach.


Area of Focus The Common (Costly) Mistake Our Recommended Action
Campaign Objective Using "Brand Awareness" or "Reach" objectives, paying to reach non-buyers. Always use a Conversion objective (e.g., Leads, Trials, Sales). Force the algorithm to find people who take action.
Audience Targeting Using broad demographics (age, gender, location) that lead to generic ads. Define your customer by their specific, urgent "nightmare" and target them in the niche channels they use to find solutions.
The Offer A high-friction "Request a Demo" or "Contact Us" that provides no immediate value. Create a high-value, low-friction offer: a free trial, a freemium plan, an automated tool, or a valuable resource. Solve a problem for free first.
Key Metric Obsessing over low Cost Per Click (CPC) or Cost Per Lead (CPL) and attracting low-quality prospects. Calculate your LTV and focus on maintaining a healthy LTV:CAC ratio (e.g., 3:1). This empowers you to spend what's necessary to acquire great customers.

While I've laid out the strategy here, the execution is where the real work lies. Continuously testing new audiences, writing compelling ad copy that speaks to different pain points, optimising landing pages, and managing budgets across platforms is a full-time job that requires deep expertise. This is the difference between knowing the path and walking the path.

If this way of thinking about customer acquisition resonates with you and you'd like an expert eye on your specific business and challenges, we offer a completely free, no-obligation 20-minute strategy consultation. We can take a look at what you're doing now and provide some concrete, actionable steps you can take straight away.

Hope that helps!

Regards,

Team @ Lukas Holschuh

Real Results

See how we've turned 5-figure ad spends
into 6-figure revenue streams.

View All Case Studies
$ Software / Google Ads

3,543 users at £0.96 each

A detailed walkthrough on how we achieved 3,543 users at just £0.96 each using Google Ads. We used a variety of campaigns, including Search, PMax, Discovery, and app install campaigns. Discover our strategy, campaign setup, and results.

Implement This For Me
$ Software / Meta Ads

5082 Software Trials at $7 per trial

We reveal the exact strategy we've used to drive 5,082 trials at just $7 per trial for a B2B software product. See the strategy, designs, campaign setup, and optimization techniques.

Implement This For Me
👥 eLearning / Meta Ads

$115k Revenue in 1.5 Months

Walk through the strategy we've used to scale an eLearning course from launch to $115k in sales. We delve into the campaign's ad designs, split testing, and audience targeting that propelled this success.

Implement This For Me
📱 App Growth / Multiple

45k+ signups at under £2 each

Learn how we achieved app installs for under £1 and leads for under £2 for a software and sports events client. We used a multi-channel strategy, including a chatbot to automatically qualify leads, custom-made landing pages, and campaigns on multiple ad platforms.

Implement This For Me
🏆 Luxury / Meta Ads

£107k Revenue at 618% ROAS

Learn the winning strategy that turned £17k in ad spend into a £107k jackpot. We'll reveal the exact strategies and optimizations that led to these outstanding numbers and how you can apply them to your own business.

Implement This For Me
💼 B2B / LinkedIn Ads

B2B decision makers: $22 CPL

Watch this if you're struggling with B2B lead generation or want to increase leads for your sales team. We'll show you the power of conversion-focused ad copy, effective ad designs, and the use of LinkedIn native lead form ads that we've used to get B2B leads at $22 per lead.

Implement This For Me
👥 eLearning / Meta Ads

7,400 leads - eLearning

Unlock proven eLearning lead generation strategies with campaign planning, ad creative, and targeting tips. Learn how to boost your course enrollments effectively.

Implement This For Me
🏕 Outdoor / Meta Ads

Campaign structure to drive 18k website visitors

We dive into the impressive campaign structure that has driven a whopping 18,000 website visitors for ARB in the outdoor equipment niche. See the strategy behind this successful campaign, including split testing, targeting options, and the power of continuous optimisation.

Implement This For Me
🛒 eCommerce / Meta Ads

633% return, 190 % increase in revenue

We show you how we used catalogue ads and product showcases to drive these impressive results for an e-commerce store specialising in cleaning products.

Implement This For Me
🌍 Environmental / LinkedIn & Meta

How to reduce your cost per lead by 84%

We share some amazing insights and strategies that led to an 84% decrease in cost per lead for Stiebel Eltron's water heater and heat pump campaigns.

Implement This For Me
🛒 eCommerce / Meta Ads

8x Return, $71k Revenue - Maps & Navigation

Learn how we tackled challenges for an Australian outdoor store to significantly boost purchase volumes and maintain a strong return on ad spend through effective ad campaigns and strategic performance optimisation.

Implement This For Me
$ Software / Meta Ads

4,622 Registrations at $2.38

See how we got 4,622 B2B software registrations at just $2.38 each! We’ll cover our ad strategies, campaign setups, and optimisation tips.

Implement This For Me
📱 Software / Meta & Google

App & Marketplace Growth: 5700 Signups

Get the insight scoop of this campaign we ran for a childcare services marketplace and app. With 5700 signups across two ad platforms and multiple campaign types.

Implement This For Me
🎓 Student Recruitment / Meta Ads

How to reduce your cost per booking by 80%

We discuss how to reduce your cost per booking by 80% in student recruitment. We explore a case study where a primary school in Melbourne, Australia implemented a simple optimisation.

Implement This For Me
🛒 eCommerce / Meta Ads

Store launch - 1500 leads at $0.29/leads

Learn how we built awareness for this store's launch while targeting a niche audience and navigating ad policies.

Implement This For Me

Featured Content

The Ultimate Guide to Stop Wasting Money on LinkedIn Ads: Target Ideal B2B Customers & Drive High-Quality Leads

Tired of LinkedIn Ads that drain your budget and deliver poor results? This guide reveals the common mistakes B2B companies make and provides a proven framework for targeting the right customers, crafting compelling ads, and generating high-quality leads.

July 26, 2025

Find the Best PPC Consultant in London: Expert Guide

Tired of PPC 'experts' who don't deliver? This guide reveals how to find a results-driven PPC consultant in London, spot charlatans, and ensure a profitable ad strategy.

July 31, 2025

The Complete Guide to Google Ads for B2B SaaS

B2B SaaS Google Ads a money pit? Target the WRONG people & offer demos nobody wants? This guide reveals how to fix it by focusing on customer nightmares.

August 15, 2025

Fix Failing Facebook Ads: The Ultimate Troubleshooting Guide

Frustrated with Facebook ads that burn cash? This expert guide reveals why your campaigns fail and provides a step-by-step strategy to turn them into profit-generating machines.

July 31, 2025

Solved: Video ads or still images on Facebook Ads?

I'm trying to figure out if I should make video ads or just use still images on Facebook. Because it's a newer solution to business problems, I'm thinking of using still images to get a simple message across to users. What do you all recommend?

August 4, 2025

Solved: Best bid strategy for new Meta Ads ecom account?

Im starting a new meta ads account for my ecom company and im not sure what bid strategy to use.

July 18, 2025

B2B Social Media Advertising: Generate Leads on LinkedIn & Meta

Unlock the power of B2B social media advertising! This guide reveals how to choose the right platforms, target your ideal customers, craft compelling ads, and optimize your campaigns for lead generation success.

August 4, 2025

The Complete Guide to Meta Ads for B2B SaaS Lead Generation

B2B SaaS ads failing? You're likely making these mistakes. Discover how to fix them by targeting pain points and offering instant value, not demos!

August 17, 2025

Building Your In-House Paid Ads Team vs. Hiring an Agency: A Founder's Decision Framework

Struggling to decide between an in-house team and an agency? Discover a founder's framework that avoids costly mistakes by focusing on speed, expertise, and risk mitigation. Learn how a hybrid model with a junior coordinator and the agency will let you scale faster!

August 8, 2025

Google Ads vs. Meta Ads: A Data-Driven Framework for E-commerce Brands

Struggling to choose between Google & Meta ads? E-commerce brands, discover a data-driven framework using LTV. Plus: Target search intent & ad creative tips!

August 19, 2025

Solved: Need LinkedIn Ads Agency for B2B SaaS in London

I'm trying to find an agency that know how to run LinkedIn ads for B2B SaaS, but I'm having a tough time finding someone in London that get it.

July 31, 2025

The Small Business Owner's First Paid Ads Campaign: A Step-by-Step Guide

Struggling with your first paid ads? It's likely you're making critical foundational mistakes. Discover how defining your customer's 'nightmare' and LTV can unlock explosive growth. Plus: high-value offer secrets!

August 19, 2025

Unlock The Ad Expertise You're Missing.

Free Consultation & Audit