Free 30 minute workshops that help you up your digital ad game.

Lunch & Learn Series

How to Know If Your Ad Strategy Is Actually Working

October 27, 2025

Digital Marketing

Stop guessing and start measuring what really matters

Running ads for your business can feel like a leap of faith. You set a budget, write some copy, pick an audience, and then… wait. The numbers start rolling in, but what do they really mean? Is your strategy working? Are your dollars actually turning into results? Or are you just throwing money into the void?

If you’ve ever felt unsure about your ad performance — whether on Meta (Facebook/Instagram), Google, or TikTok — you’re not alone. Ads can be incredibly effective, but only when they’re aligned with your goals and measured properly. This guide is here to help you cut through the confusion and finally get clear on what’s working, what’s not, and how to fix it.

Start With the Right Goal (Or Risk Measuring the Wrong Thing)

Before you even launch an ad, you need to define what “working” looks like for you. A brand trying to grow email subscribers will measure success differently than one trying to drive online sales. Without a clear goal, you might focus on metrics that look good (like lots of clicks) but don’t actually serve your business.

Ask yourself:

  • Do I want to build brand awareness?
  • Am I trying to increase website traffic?
  • Do I want more leads or sales?
  • Is this ad meant to nurture or convert?

Knowing your intent helps you choose the right campaign objective and KPIs (key performance indicators). For example, a campaign focused on brand awareness might care about impressions and reach, while a lead generation ad needs to track signups and cost per acquisition.

What “Working” Really Means — It’s Not Just About Clicks

A high number of likes or views doesn’t mean your ad is performing well. Those are vanity metrics — they look nice but rarely translate to real results. What you want to track are performance metrics — things that align with your goals and contribute to growth.

Marketing isn’t about getting attention. It’s about getting the right attention and converting it into action. That means focusing on what actually moves your business forward, not just what racks up numbers.

Understand the Buyer Journey and Attribution

Here’s something most small business owners aren’t told: most people don’t buy the first time they see your ad. They browse. They think. They forget. Then maybe they come back later.

That’s the buyer journey — and your ad strategy should reflect that. Think of it as a funnel:

  • Top of funnel (Awareness): People who don’t know you yet.
  • Middle of funnel (Consideration): People exploring your offer, maybe following you or signing up for emails.
  • Bottom of funnel (Conversion): People ready to buy — they just need a nudge.

Each stage needs different messaging and expectations. A brand awareness ad isn’t likely to drive instant sales — and that doesn’t mean it failed. It means it’s doing its job warming up your audience.

Also important: attribution. This is how platforms track which ad led to a conversion. Many people see an ad but come back days later to purchase. Understanding attribution windows (like 7-day click or 1-day view) helps you see the full picture.

The 5 Core Metrics That Actually Matter

Let’s break down what you should be tracking — and why it matters.

1. CTR (Click-Through Rate)

This tells you how many people clicked your ad after seeing it. A low CTR usually means your ad isn’t grabbing attention or the message isn’t landing.

📍 Why it matters: It reflects how compelling your ad creative and copy are.

2. CPC (Cost Per Click)

This tells you how much you’re paying for each person who clicks your ad.

📍 Why it matters: A high CPC can indicate inefficiency — you might be targeting the wrong audience or using underperforming creative.

3. Conversion Rate

How many of those clicks turn into leads, sales, or another desired action? If people are clicking but not converting, your landing page or offer may need work.

📍 Why it matters: Clicks are only valuable if they lead to action.

4. ROAS (Return on Ad Spend)

How much money did your ad make compared to how much you spent?

📍 Why it matters: It’s the clearest profitability metric. If you spend $100 and make $300, your ROAS is 3:1.

5. CPA (Cost Per Acquisition)

How much are you paying to gain each customer or lead?

📍 Why it matters: Knowing your CPA helps you understand if your ad is cost-effective based on your margins.

Simple Troubleshooting Framework

Not seeing the results you expected? Here’s a quick guide to diagnosing issues:

SymptomWhat It Might MeanWhat to Check
High impressions, low CTRAd isn’t grabbing attentionTest a new headline, image, or offer
High CTR, low conversionsLanding page isn’t convincingImprove clarity, simplify design, check mobile usability
Low ROAS, high CPAAd spend not profitableAdjust targeting or test a different offer
High CPCWeak targeting or creativeRefine audience and messaging

Common Mistakes First-Time Ad Users Make

If ads feel confusing or like a waste, you might be making one of these beginner mistakes — and that’s okay! Here’s what to watch out for:

  • Not installing a pixel or tracking code — if you can’t measure it, you can’t improve it.
  • Using the wrong campaign objective — like running a “traffic” campaign when you want sales.
  • Only running one version of an ad — always test multiple creatives, headlines, and audiences.
  • Talking about features instead of benefits — focus on how your product solves a problem.
  • Targeting too broad or too narrow — not everyone is your customer. Find your niche.
  • Letting ads run too long without checking — refresh creatives and monitor performance regularly.

How to Track Performance (Even If You’re Not a Pro)

You don’t need to be a data nerd to keep tabs on your ads. Here’s how to make it manageable:

  • Use Meta Ads Manager or Google Ads Dashboard — don’t rely on what you see in-app.
  • Set up Google Analytics and track conversions through UTMs or event tags.
  • Create a simple spreadsheet with:
    • Date range
    • Spend
    • Clicks
    • Conversions
    • ROAS
  • Review your numbers weekly (for trends) and monthly (for strategy shifts).

What a Healthy Ad Strategy Looks Like Over Time

Real growth isn’t instant — and that’s okay. Ads take time to optimize and scale.

Here’s what a realistic timeline looks like:

  • Month 1: Test multiple creatives, copy angles, and audiences. Gather data.
  • Month 2: Review performance. Cut what’s not working. Focus on what is.
  • Month 3+: Scale your winners. Add retargeting. Refine messaging. Optimize funnel.

The best ad strategies evolve. If you’re constantly learning and adjusting, you’re doing it right.

When It’s Time to Bring In Help

Sometimes the smartest thing you can do is get support. Consider hiring a strategist or agency if:

  • You’ve spent hundreds and don’t know what’s working
  • You’re stuck in analysis paralysis and don’t know what to test
  • You want to scale but need guidance to do it profitably
  • You’re short on time and need someone to manage things for you

The right expert will help you build a strategy that aligns with your goals, handles optimization, and provides transparent performance reports.

Marketing You Can Measure

Ads aren’t a guessing game. When done well, they become a predictable, measurable engine for growth. But the key is knowing what to track, how to interpret it, and when to pivot.

If you start with clear goals, respect the buyer journey, monitor the right metrics, and avoid the most common pitfalls, you’ll be well on your way to making your ad dollars work harder — and smarter — for your business.

Share this post:

Leave a Reply

Your email address will not be published. Required fields are marked *

search the blog

  • Catch up on digital marketing news in 3 minutes
  • Expert digital advertising tips to apply to your strategy
  • Links to new content and offers from DM Squared Media

Stay Up-To-Date on All Things Digital Marketing

    newsletter includes: