Stop Wasting Ad Budget: A Practical Guide to Fixing Underperforming Campaigns

 
Do you find it challenging to deal with underperforming ads?
This article will walk you through how to identify weak campaigns and optimize for better performance.

Track Metrics to Flag Weak Ads Early

The first step to spotting weak ads? Keep a close eye on the right metrics. Here are the key ones to watch.

Click-Through-Rate（CTR）

CTR measures the percentage of people who saw your ad and clicked on it. It’s calculated as:
CTR = (Clicks ÷ Impressions) × 100%
Why It Matters？
CTR reflects how compelling your ad is to the audience. A low CTR usually signals problems with your creative, copy, or targeting. It also affects your ad's delivery efficiency—especially on platforms like Facebook and Google, where higher CTRs can lead to lower CPC and better placement due to algorithmic rewards.
Benchmark (Facebook Ads, Global Averages)
Good CTR: 1% – 3%
Excellent CTR: > 3%
Low CTR: < 0.8% (suggests your ad may need a refresh or better targeting)
 

Cost Per Click（CPC）

CPC refers to the amount you pay each time a user clicks on your ad. It's a key metric for evaluating the cost-efficiency of your campaign.
Why It Matters？ A high CPC with low conversion usually signals poor targeting or ineffective creatives. It directly impacts your ad spend and ROI.
Benchmark (Facebook Ads, Global Averages)
  • Good CPC: $0.30 – $0.60
  • High CPC: > $1.00 (typically needs optimization)
Note: CPC varies significantly by industry (e.g., finance and legal sectors tend to have higher CPCs).
 

Coversion Rate（CVR）

Conversion Rate is the percentage of users who take a desired action after clicking an ad—such as making a purchase, signing up, or installing an app.
Why It Matters？
A low CR indicates that while people may be clicking, they’re not following through. This could be due to weak landing pages, irrelevant offers, or misaligned targeting.
Benchmark
Average CR (Facebook Ads): 2% – 5%
Excellent CR: > 5%
Poor CR: < 1%
 

Relevance Score (now called 'Ad Quality Ranking' by Meta)

This score reflects how well your ad resonates with your target audience based on engagement, feedback, and performance (like CTR, hides, etc.). Meta replaced the old 1–10 relevance score with three quality signals:
  • Quality Ranking
  • Engagement Rate Ranking
  • Conversion Rate Ranking
Why It Matters？ A low score can increase your CPC and reduce your ad's delivery. A high score lowers cost and improves visibility.
Benchmark (Old Score Reference / Meta New Rank Guidance)
  • Good: Relevance Score ≥ 7
  • Needs Improvement: Relevance Score < 4
  • Meta Rankings: Aim for “Above Average” or at least “Average” in all three ranking dimensions.
 
 

Manage Underperforming Ads with Automation

Set Rules

Wanna shut down underperforming ads in a timely manner? With XMP's Automation Optimization, you can turn off weak campaigns easily without manual work. It will automatically pause low-performing ad sets and notify your team for further analysis.
 

Evaluate Performance Regularly

It's recommended to conduct a weekly ad health check to review performance data across all campaigns.
If an ad has been underperforming for 7 consecutive days, it should be paused promptly to prevent further budget waste.
 

Analyze the Cause

Use the Diagnose feature of XMP to quickly identify which ads are performing the worst and having the greatest negative impact. Common causes include unattractive creatives, poor audience targeting, or unconvincing ad copy.
 

Ad Strategies That Actually Work

 

Improve Ad Creative

Your creative is the first thing users notice. Creating visually engaging content using high-quality images or videos that stand out in the feed is essential. Make your copy clear and to the point, highlighting key product benefits and unique selling points. Avoid long, dense text. Finally, make A/B test for different ad versions with varied visuals and messaging, then identify what works best.
 

Optimize Audience Targeting

Segmenting your audience based on factors like age, gender, location, and interests, and compare how different groups respond. Take advantage of Facebook's Custom Audiences to reach people who’ve already interacted with your brand, and use Lookalike Audiences to find new users similar to your existing customers. Additionally, check for audience overlap using Facebook’s tools—if overlap is high, exclude overlapping groups to avoid internal competition and inflated CPC.
 

Smart Ad Deliverary

Implement a dynamic budget scaling strategy by starting with a conservative spend—for instance, limit new ad sets to $50 on the first day. If no conversions are o bserved within 48 hours, pause them to avoid unnecessary costs. Leverage Facebook's analytics to determine the most effective time slots for ad delivery to boost visibility.
 

Leverage Intelligent Ad Tools: XMP

XMP connects with major platforms like Meta, Google, and TikTok to collect essential ad performance metrics—such as impressions, CTR, and conversions. With its unified analytics dashboard, you can break down campaign data across various dimensions, including channels, regions, creatives, and product lines. This actionable insight empowers all advertisers to pinpoint high-performing campaigns and scale them effectively—driving sustained user growth.
 
 
 
Tools like XMP empower you with automated monitoring, bulk campaign creation, and cross-channel optimization, enabling faster decision-making and improved campaign efficiency. Leveraging such technology is no longer optional—it’s a strategic necessity.
 
Previous
Real Money Gaming Ads: Top Challenges and Smart Solutions for 2025
Next
Meta Advertising in 2025: Key Trends and Actionable Strategies for Higher ROI
Last modified: 2025-05-20Powered by