Why Your Ads Don’t Work and How to Fix It Using Real Math ( eCommerce Paid Ads Calculator inside)
If you've ever spent hundreds—or even thousands—on Facebook or Instagram ads and felt like your money vanished into thin air, you're not alone. Every week, I talk to eCommerce founders who think ads will magically sell their €20 T-shirts or €30 candles. But the harsh truth is: most don’t understand the economics behind advertising.
Is Facebook (META) burning your money?
The Hidden Cost of Advertising (and Why It’s Killing Your ROI)
When I ask, "What’s your average order value? What’s your gross margin?" I usually get blank stares. Here’s what most people miss: ads are getting more expensive. CPMs (Cost Per Mille) are rising, CTRs (Click-Through Rates) are dropping, and conversion rates are wildly unpredictable.
If you're not measuring the underlying math, you're not really managing your ad performance—you're gambling.
Meet the eCommerce Ad Calculator
That’s exactly why I built the eCommerce Ad Calculator.
Just plug in:
Product price
Conversion rate
Click-through rate
CPM (Cost per 1,000 impressions)
Your revenue goal
The calculator instantly tells you:
How much you’ll need to spend
Whether or not your campaign will be profitable
It’s brutally honest—and that’s exactly what most eCommerce brands need.
eCommerce Paid Ads Calculator
Our eCommerce Paid Ads Campaign Calculator helps you estimate exactly how much you need to invest in ads to hit your sales goals.
Start planning smarter ad campaigns today — try the calculator now and take control of your paid marketing strategy.
🥑 eCommerce Ad Calculator
Understanding Your Results
This calculator helps you estimate the advertising resources needed to achieve your sales target:
- Total Customers: The number of customers needed to reach your sales target based on your average order value.
- Total Website Visitors: The number of visitors your website needs based on your conversion rate.
- Total Ad Impressions: The number of ad views needed based on your click-through rate.
- Total Ad Cost: The estimated cost of your advertising campaign based on your CPM.
- Cost-per-conversion (CAC): The average cost to acquire one customer.
- Return on Ad Spend (ROAS): For every euro spent on ads, how many euros you get back in revenue.
Metrics Analysis
Conversion Rate (4%): Good - The average eCommerce conversion rate is 1-3%, so 4% is above average.
CTR (3%): Good - The average CTR for display ads is 0.1-1%, so 3% is excellent.
CPM (€50): Normal - CPMs typically range from €5-€50 depending on platform and targeting.
CAC (€41.67): Normal - This is reasonable if your product price is €50, giving you a CAC:LTV ratio of about 1:1.2.
ROAS (1.20): Below Target - A healthy ROAS is typically 3:1 or higher. Your current ROAS means you're getting €1.20 in revenue for every €1 spent on ads.
Real Examples: Success vs. Struggle
Let’s break this down with real examples and characters to illustrate what works and what doesn’t:
🔥 GOOD CASE #1: Lucy's High-Value Beauty Cream
Lucy sells a premium anti-aging beauty cream for €120. With solid ad creative and an optimized funnel, her traffic is affordable and converts well.
CPM: €15 (cost to reach 1,000 people)
CTR: 3% (30 people clicked per 1,000 impressions)
Conversion Rate: 4% (4 of those 30 bought)
AOV: €120 (each buyer spends an average of €120)
Results:
CAC: €12.50 (cost to acquire one customer)
ROAS: 9.6 (return of ad spend, for every euro Lucy invest, she gets 9.6 euros back)
High CTR, strong conversion, and a big AOV create a high-profit, scalable machine.
🔥 GOOD CASE #2: Marco's Outdoor Gear Bundle
Marco bundles camping tools for a €75 package. Cheap impressions, solid click-through, and a reasonable conversion rate give him breathing room.
CPM: €10
CTR: 2.5% (25 clicks per 1,000 views)
Conversion Rate: 3% (3 out of 25 buy)
AOV: €75 (average order value)
Results:
CAC: €13.33 (cost to acquire one customer)
ROAS: 5.6 (return of ad spend, for every euro Marco invest, he gets 5.6 euros back)
Efficient traffic and a healthy funnel make this business sustainable and growth-ready.
⚖️ AVERAGE CASE #1: Anna's Fashion Accessories
Anna sells fashion jewelry and bags. While her ads get clicks, the lower AOV and mediocre conversion hold her back.
CPM: €20
CTR: 1.5% (15 clicks per 1,000)
Conversion Rate: 2% (2 out of 15 buy)
AOV: €40
Results:
CAC: €26.67
ROAS: 1.5
There's some margin, but not much. Needs improvement in AOV or conversion rate.
⚖️ AVERAGE CASE #2: Leo's Eco Drinkware
Leo promotes sustainable drinkware. Clicks are decent but landing page or offer likely needs refinement.
CPM: €12
CTR: 2.8% (28 clicks per 1,000)
Conversion Rate: 1% (1 out of 28 buys)
AOV: €60 (average order value)
Results:
CAC: €21.43
ROAS: 2.8
Great traffic but weak conversion. Time to optimize the landing page or offer.
⚠️ BAD CASE #1: Nina's Handmade Necklaces
Nina sells handmade jewelry on a tight budget. Poor click rate, high CPM, and low conversion sink her chances.
CPM: €30
CTR: 1% (10 clicks per 1,000)
Conversion Rate: 1% (1 out of 100 buys)
AOV: €30 (average order value)
Results:
CAC: €100
ROAS: 0.3 (return of ad spend, for every euro Nina invest, she gets 0.3 euros back)
Losing money fast. Either raise prices dramatically or stop running ads.
⚠️ BAD CASE #2: Omar's Cheap Phone Accessories
Omar is running ads for low-margin phone cases. With poor click-through and terrible conversion, it’s a money pit.
CPM: €25
CTR: 0.5% (5 clicks per 1,000)
Conversion Rate: 0.5% (1 out of 200 buys)
AOV: €20
Results:
CAC: €1,000 (cost to acquire one customer)
ROAS: 0.02
This is a financial black hole. A complete reset of product, offer, and targeting is needed.
What If You're Already Losing Money?
If the numbers say you’re not profitable, don’t panic. Here are four battle-tested strategies to fix it:
1. Raise Your Prices
Simple. Direct. Sometimes necessary. But tough in saturated markets.
2. Increase Your AOV (Average Order Value)
Bundle products. Offer kits. Try 2-for-1 deals. Aim to increase the cart size without increasing ad spend.
3. Add Upsells & Cross-sells
Encourage add-ons at checkout. That €20 sale could become €40 with the right offer.
4. Boost Your CTR and Conversion Rate
Better hooks. Stronger creatives. More compelling landing pages. But beware: if you need a 10% conversion rate to break even, you’re not running ads—you’re chasing unicorns.
Know the Truth Before You Spend Another Euro
The eCommerce Ad Calculator doesn’t sugarcoat. It won’t tell you what you want to hear—it’ll show you what’s actually possible with your business model.
👉 Use it.
👉 Know your numbers.
👉 Scale only when the math makes sense.
