Running Facebook ads for your business sounds like a no-brainer, right? You set up a campaign, target the right audience, and watch the leads roll in. But if you’ve been managing ads for a while, you know it’s not that simple.

You might have also come across a situation in which your ad costs keep rising with no significant improvement in conversions. This happens due to Facebook’s (now Meta) ever-changing policies and algorithm updates. What worked last year (or even last month) might already be outdated.

If this sounds familiar, you’re not alone. Many Indian SMEs struggle to make Meta ads work for them. The good news is—you can fix it.

This blog breaks down the most common mistakes businesses make and walks you through actionable steps to improve your ad performance, lower costs, and get real results.

Common pitfalls in Meta advertising for Indian SMEs

Many Indian SMEs pour money into campaigns and do not get the expected results. Why? Because the platform has become more complex, ad costs are rising, and targeting isn’t as straightforward as it used to be.

Here are the key challenges that are making Meta ads a struggle for SMEs in India:

1. Ineffective audience targeting

A major reason why SMEs waste money on Meta ads is poor audience targeting. Some businesses cast their net too wide, hoping to reach as many people as possible—but end up paying for clicks that don’t convert. Others go too narrow, excluding potential customers who might have been interested.

Refined targeting increases engagement rates. Yet, many SMEs still rely on broad demographic targeting instead of using advanced tools like Custom Audiences or Lookalike Audiences.

2. Creative fatigue is real

You’ve probably seen this happen—your ad starts strong, but after a few weeks, engagement drops, and your cost per click (CPC) shoots up. That’s creative fatigue.

Facebook’s algorithm prefers fresh, engaging content, and showing the same ad repeatedly can cause users to tune out. In fact, studies show that ad performance can drop if creatives are not refreshed every two to four weeks. Despite this, many SMEs continue running the same ads for months, thinking that a high-performing creative will stay effective forever.

3. Rising costs of meta ads

Meta advertising is getting more expensive, and SMEs are feeling the pressure. The average cost per thousand impressions (CPM) rate in India in 2025 is $8.15, and competition is only growing.

Larger brands with bigger budgets are bidding for the same audience, pushing up the price for small businesses. Without the right strategy, SMEs can end up spending more for fewer clicks, making it harder to maintain profitability.

4. Low-quality leads in lead generation campaigns

If you’ve ever run a Facebook lead generation campaign, you know the struggle—tons of form submissions but hardly any real customers. Facebook’s lead forms make it too easy for users to sign up, often attracting people who aren’t actually interested in your product. Many SMEs assume that a high number of leads means success, only to realise later that they’ve been paying for uninterested prospects.

5. Complexity of Meta’s ad platform

Facebook’s Ads Manager isn’t exactly beginner-friendly. With campaign structures, bidding strategies, and multiple ad formats to choose from, SMEs often find themselves overwhelmed. It’s easy to set up a campaign incorrectly—leading to wasted budget and poor results.

Many businesses also fail to structure their campaigns properly. Instead of using a funnel approach (TOFU, MOFU, BOFU), they run one-size-fits-all ads that don’t cater to different stages of the buyer journey. This leads to low engagement and poor conversion rates.

6. Privacy concerns and the iOS 14 impact

Ever since Apple’s iOS 14 update rolled out, tracking user behaviour on Meta has become more difficult. The update gave users the option to opt out of tracking. This means Meta can no longer track conversions as effectively, making it harder to measure the success of your ads.

For SMEs that rely on retargeting, this has been a major setback. Without accurate tracking, businesses are forced to spend more to reach the right audience—leading to higher ad costs and lower ROI.

7. Algorithm changes and reduced organic reach

Remember when a simple Facebook post could reach thousands of followers without paying for ads? Those days are long gone. Meta’s algorithm now prioritises content from friends and family over business pages, dropping the organic reach of Meta business pages. This forces SMEs to rely more on paid advertising to stay visible.

These challenges might seem overwhelming, but they’re not impossible to overcome. In the next section, we’ll walk you through seven practical steps to improve your Meta advertising strategy.

A step-by-step strategy to run Meta ads for Indian SMEs

Running successful Meta ads requires more than just setting a budget and hitting “Boost post.” For Indian SMEs, where every rupee spent on marketing matters, a well-thought-out strategy can make the difference between wasted ad spend and a profitable campaign.

Step 1: Define clear objectives before launching any ad

Before spending a single rupee, it is crucial to have a well-defined goal. Meta Ads Manager offers multiple campaign objectives, including:

  • Awareness (brand awareness, reach) – best for new businesses looking to get noticed.
  • Consideration (traffic, engagement, video views, lead generation) – ideal for businesses wanting potential customers to interact with their brand.
  • Conversion (sales, store visits) – perfect for eCommerce businesses and lead conversion campaigns.

A good starting point is to run a traffic campaign to drive people to the website before moving on to conversion-focused ads.

Step 2: Understand and segment the audience

One of the biggest mistakes SMEs make is targeting the wrong audience, either too broadly or too narrowly. Here is how to get the targeting right.

Use Meta’s audience insights

  • Go to Meta Business Suite > Audience Insights to analyse the target audience’s age, location, and interests.
  • Look at past organic engagement to identify the users who interact with the page.

Build custom and lookalike audiences

  • Custom audiences: Retarget people who have visited the website, engaged with posts, or interacted with the page.
  • Lookalike audiences: Find new potential customers with similar behaviours to existing buyers.

A one per cent lookalike audience, consisting of people most similar to current buyers, typically delivers the best conversion rates.

Step 3: Install and leverage Meta Pixel for better tracking

The Meta Pixel is a small piece of code installed on a website to track user activity, helping to optimise ads and improve targeting.

How to set up Meta Pixel?

  1. Go to Meta Business Suite > All tools > Events Manager > Connect Data Sources
  2. Choose Web and select Connect
  3. Create a Pixel and name it in the next dialog box
  4. Write the website’s URL
  5. You will find two options to connect to your website.
    1. Meta Pixel and Conversions API (Meta recommended)
    2. Meta Pixel only
  6. Select the partner for which you want to install the Pixel.

Once installed, create retargeting ads for users who visited the website but did not complete a purchase.

Step 4: Create engaging and authentic ad content

Many SMEs struggle with ad creatives, leading to poor engagement. Here is how to craft high-performing ads.

Use high-quality visuals

  • Choose real images over stock photos to make ads feel more personal.
  • Use carousel ads to showcase multiple products.
  • Experiment with short videos (15-30 seconds) for better engagement.

Write compelling ad copy

  • Hook: Start with a strong statement or question. Example: “Tired of expensive salon visits? Get salon-quality skin care at home.”
  • Value proposition: Highlight the key benefit concisely. Example: “Our DIY facial kits save you ₹3,000 per month.”
  • Call to action (CTA): Instruct users on the next step. Example: “Shop now” or “Sign up for free.”

Keeping ad copy short and scannable, ideally under three sentences, improves engagement.

Step 5: A/B test and optimise ad campaigns regularly

Many SMEs set up ads once and forget about them. To get the best results, it is essential to test and refine campaigns continuously.

Test multiple ad variations (A/B testing)

  • Run at least two to three versions of the ad with different images, copy, or CTAs.
  • Let the ads run for three to five days and compare performance.

Monitor key metrics and adjust

  • Click-through rate (CTR): A rate below one per cent suggests that the ad creative is not engaging enough.
  • Conversion rate: If users click but do not convert, the landing page may need improvement.
  • Cost per click (CPC): High costs indicate that audience targeting needs refinement.

It is best to turn off underperforming ads and shift the budget to high-performing ones.

Step 6: Reduce cost by optimising ad bidding and placements

For Indian SMEs with limited budgets, controlling costs is crucial. Here is how to lower ad spend while maximising return on investment.

Use the right bidding strategy

  • If new to ads, use the lowest cost (auto bidding) to let Facebook optimise bids.
  • For experienced advertisers, try a bid cap strategy to control ad costs manually.

Choose cost-effective ad placements

  • Select “automatic placements” to let Meta find the cheapest slots.
  • If manually selecting, prioritise Meta news feed, Instagram stories, and audience network (these often convert best).

For lead generation campaigns, it is advisable to avoid the audience network as it often results in low-quality leads.

Step 7: Diversify with organic and paid strategies

Relying only on paid ads can be risky, especially with rising CPC. To reduce costs, SMEs should combine organic content with ads.

Mix organic with paid ads

  • Post regular organic content (reels, stories, polls) to keep the page active.
  • Retarget users who engage with posts using Meta ads.

Focus on video content

  • Video ads generate higher engagement and lower CPC than static images.
  • Story ads and Reels ads tend to perform well with Indian audiences.

Running retargeting ads for Instagram Reels viewers can be an effective way to convert an already engaged audience.

Quick recap

  1. Set clear objectives before running ads.
  2. Segment the audience using custom and lookalike audiences.
  3. Use Meta Pixel to track and retarget potential customers.
  4. Invest in quality creatives with compelling visuals and copy.
  5. A/B tests and optimise ads frequently.
  6. Manage costs effectively with the right bidding strategy.
  7. Combine organic and paid strategies for long-term success.

By following this step-by-step approach, SMEs can run high-impact Facebook ads that drive real results without exceeding their budget.

How can TalkNLock help in Meta Advertising?

TalkNLock specialises in performance-driven digital advertising designed for Indian businesses. With 7+ years of experience, we combine data-backed insights, innovative ad strategies, and real-time performance tracking to help you achieve cost-effective, scalable growth.

  • Precision audience targeting – Build highly effective Custom and Lookalike Audiences to reach the right customers.
  • Ad creative optimisation – Prevent ad fatigue and improve engagement with compelling ad designs.
  • Advanced tracking & analytics – Leverage Meta Pixel integration for real-time performance insights.
  • Data-driven campaign management – A/B test and optimise for maximum conversions at minimal cost.
  • Comprehensive ad solutions – From campaign setup to lead nurturing, we handle everything while you focus on growing your business.

Turn your Meta ad spend into revenue with data-driven marketing with one phone call!

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