How to Know If You’re Wasting Money on Ads

Hey—real talk. If you’re running ads and you don’t know exactly what they’re doing for you, there’s a good chance you’re wasting money. Even smart, successful business owners fall into this trap because ads feel like a black box. You throw money in and hope magic comes out. That’s not a strategy—it’s a scratch-off ticket. Here’s how to know if your ads are pulling their weight.

✅ Step 1: Ask the One Question That Matters

“What is our cost per result—and is it worth it?”

Let’s break that down:

• If you’re running ads to get leads, what’s the cost per lead?
• If you’re selling something directly, what’s the cost per sale?

Here’s the thing: you don’t need 15 data points. You just need this one metric to know if you're in the green or bleeding cash.

Example:

• You spent $500 on ads last month
• You got 10 leads
• Cost per lead = $50
  If your average customer brings in $1,000 in revenue? Great!
  If it’s only $100? You’ve got a problem.

🕵️‍♂️ Where to find it:
Open your ad platform (Facebook/Meta, Google, etc.), and look at the "Results" column—make sure it's showing leads, purchases, or conversions. Not just impressions or clicks.

🚩 Step 2: Spot the Red Flags

Even if your cost per result seems okay, you might still be wasting money. Look out for these signs:

1. Your Ads Don’t Match Your Landing Page

If your ad promises “Free Delivery” but your site doesn’t mention it? People bounce. Fast.

Fix it: Make sure the message in your ad is repeated loud and clear on your landing page.

2. You’re Optimizing for the Wrong Goal

Platforms like Facebook love asking, “What’s your campaign objective?”

If you selected “Traffic” instead of “Leads” or “Conversions,” guess what? You’re just paying for clicks. That’s it. No guarantee they’ll ever buy, sign up, or even stay on your page.

Fix it: Make sure you’re optimizing for the action you actually want (e.g. leads, sales, form submissions).

3. You Have No Follow-Up System

A lead means nothing if no one follows up. A sale can vanish if the email sequence is broken.

Fix it: Check what happens after someone clicks or converts. Is there an email confirmation? A next step? A thank-you page that keeps them engaged?

🧠 Bonus: What Good Looks Like

Here’s what a healthy ad setup usually includes:

✋ Don’t Panic—Start Here Instead

If you’re reading this and thinking, “Okay, my ads are a mess…” — that’s okay.

You don’t have to know everything. But as the business owner, you do need to understand enough to ask the right questions.

Your 10-Minute Action Plan:

1. Open your ad account and look at last month’s spend.
2. Divide spend by results (leads or sales).
3. Ask: Was that worth it?
4. If not, talk to your marketing team/agency and ask:
   • What are we optimizing for?
   • What does the landing page say?
   • How are we following up with leads?

If they can’t answer clearly, it’s time to dig deeper—or rethink who’s handling your ads.

🎯 Final Thought

Ads aren’t magic. They’re just a tool. And like any tool, they can either build your business or slowly drain it.

You don’t need to become an expert—but you do need to keep your eyes open.

Your money deserves better than a blind bet.

Want Help?

If you want someone to review your ad setup, landing pages, or funnel—without a sales pitch or agency fluff—I offer one-time audits that give you clear, simple answers.

📅Book a complementary 1:1 Ad Audit Session.

Let’s make sure your money’s working as hard as you are.