Monday, Feb 17

B2B Business Marketing Opportunity

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Why Some Brands Profit on Meta Ads (And Others Burn Cash)

Sai Teja - Paid Ads Expert

Over the last six months, I’ve audited more than 50 Meta ad accounts.

I’ve seen 8-figure brands that are not only profitable but also scaling smoothly, and I’ve also seen 7-figure brands that, while they have a positive return on ad spend, are still losing money overall. Then there are some smaller brands that are struggling to break past the $10k mark.

Here’s what I learned:

My Top Three Learnings From Brands Winning on Meta

  1. They track POAS (Profit On Ad Spend), not just ROAS
    They focus on the profit their ads generate. ROAS does not give a clear picture on profitabilty.
    ROAS = Revenue attributable to ads / cost of ads
    POAS = Profit attributable to ads / cost of ads
    (For Profit you can either ad COGS or COGS + Other expenses as well)

    You need to know your break even ROAS(or POAS) even if you are currently only focused on scaling.

  2. They invest in creative like it’s their product
    Their ads feel native to Instagram/Facebook (not “ads”). They use a mix of user-generated content (UGC), polished videos, and carousels. They refresh creatives every 2-3 weeks to avoid fatigue.

  3. They are constantly testing
    They run structured experiments (e.g., testing 20+ ad variations weekly) to find winning hooks, audiences, and offers. They double down on what works and kill what doesn’t—fast.

My Top Three Learnings From Brands Struggling on Meta

  1. Their ads target everyone (and no one).
    Their ads look like generic sales pitches. Instead of speaking directly to a specific audience, their ads come off as generic sales pitches. In 2025, ads need to feel personal and targeted; the algorithm is responding to message-driven targeting.

    E.g. "Are you [call out target audience] struggling with [pain point]?" This approach tells Meta exactly who your audience is and what they’re dealing with.

  2. They run far too many campaigns

    Their account structure is an absolute mess—too many campaigns running at once. Meta's algorithm relies on data, and when that data is spread too thin, it struggles to identify winning patterns and optimize your ads effectively. Features like Cost Caps, Rule-Based Automation, and Advantage+ Campaigns all depend on having consolidated, quality data from campaigns that are already winning.

  3. They don’t cut losers quick enough

    They let ads run for weeks even when they're underperforming. Keeping these losing ads not only drains your budget but also skews your data, making it harder to see what's really working. Quick decisions to pause or adjust can save resources and help you pivot to strategies that drive results.

5-Second Self-Check

  1. Do you know your break-even ROAS? 

  2. Do you have more than 5 campaigns running? (If yes, simplify now.)

  3. Are you testing at least 5 new ads every week? (Depending on your budget, this number might need to be even higher.)

  4. Are your ads personal and clearly calling out your target audience?

  5. Are you using customer feedback to refine your ad creative and overall strategy?

Want me to audit your Meta Ads?


đź‘‹ I’m offering a FREE Meta Ads Audit to 10 founders who are spending at least $7,000 a month on Meta.

Whether you’ve got a media buyer or DIY your ads, I’ll tear apart your account and show you:

  • Where you’re leaking cash (and how to plug it).

  • Hidden opportunities to scale profitably.

  • Exactly what to test next (no fluff).

P.S. This isn’t a sales pitch. My only objective with this newsletter is to help founders like you build and scale a profitable business. If your account’s healthy, I’ll let you know. If it’s broken, I’ll show you exactly how to fix it.

Have any questions that you need help with?

Ask here - look out for Friday’s issue where Ibrahim will answer them.