Facebook, Instagram, X, LinkedIn, TikTok and almost every other digital platform are flooded with advertisements every day. Businesses are spending money to get attention, generate leads, drive traffic and ultimately make sales.
With so much emphasis on digital advertising, it is easy for business owners to assume that running ads is simply part of doing business today. You launch a business, create a social media page, and sooner or later, someone tells you that you need to “run ads” if you want to grow.
But there is a question that many business owners don't ask often enough:
Does your business actually need ads?
Or are you advertising simply because your competitors are doing the same?
There is a difference between having a good reason to advertise and simply deciding that advertising is something your business is supposed to be doing.
Running ads can certainly be a growth strategy, but advertising itself is not a business strategy. Ads are an amplifier, and like any amplifier, they make whatever is already there louder. If the foundation of the business is strong, advertising can help you reach more of the right people. If the foundation is weak, advertising can simply expose those weaknesses to a much larger audience, much faster.
This is where I think many businesses get it wrong.
They assume the problem is visibility when the real problem may be the offer, the positioning, the customer experience, the sales process or even the economics of the business.
And spending more money on ads doesn't fix any of those things.
Before you spend ₦100,000 on ads, answer these five questions
Before you put ₦100,000, ₦500,000 or ₦1 million into your next advertising campaign, there are five questions I believe you should be able to answer with some level of confidence.
1. Who exactly am I trying to reach?
One of the easiest ways to waste advertising money is to advertise to everybody.
“I want to reach anyone who needs my product” sounds like a reasonable answer until you realise that a message designed for everyone usually resonates deeply with very few people.
You need to have a reasonable understanding of who your ideal customer is, what they need, what problem they are trying to solve, what influences their purchasing decision and, importantly, whether they are actually present on the platform where you intend to advertise.
For example, the fact that millions of people use Instagram does not mean that Instagram is automatically the best place to reach your particular customer.
Your audience should influence your channel, not the other way around.
2. What problem am I solving for them?
This sounds obvious, but many businesses struggle to answer it clearly.
They can tell you what they sell, how long they have been in business, the features of their product and all the things that make their company interesting. But when you ask them what specific problem they are solving for the customer, the answer becomes less clear.
Customers don't necessarily buy products because of what the product is. They buy because of what the product or service helps them achieve.
They want to save time, make more money, look better, solve a frustrating problem, reduce risk, improve their business, make their lives easier or get a result they haven't been able to achieve on their own.
If you don't understand the problem you are solving, it becomes difficult to create an advertisement that speaks directly to the person experiencing that problem.
And no amount of clever ad copy can compensate for an unclear value proposition.
3. Why should they choose me instead of my competitor?
This is where positioning becomes important.
Your potential customer has options, and the fact that you have an advert in front of them does not mean they have a reason to choose you.
If ten businesses are offering similar products or services, what makes your business different?
Is it your expertise? Your pricing? Your speed? Your convenience? Your quality? Your customer experience? Your specialisation? Your guarantee? Your location? Your process?
You don't necessarily need to be completely different from everyone else, but you need to give the customer a reason to believe that choosing you is a better decision for their particular situation.
An advertisement can get attention, but it cannot create a compelling competitive advantage where none exists.
This is why some businesses can spend heavily on advertising and still struggle to convert the attention they receive. They have paid to get in front of potential customers, but they haven't given those customers a strong enough reason to take the next step.
4. What happens after they click the ad?
This is another area that businesses often overlook.
A lot of attention goes into creating the advertisement, choosing the audience and deciding how much money to spend. Far less attention is given to what happens after somebody responds to the advert.
But the click is not the objective. The customer is.
If someone clicks your advert and lands on a confusing website, what happens?
If they send a WhatsApp message and nobody responds for six hours, what happens?
If they ask for the price and receive a vague answer, what happens?
If they are interested in buying but have no clear idea what to do next, what happens?
You may have created a successful advertisement but an unsuccessful customer acquisition process.
This is why I don't believe you should look at advertising in isolation. The entire journey matters—from the first impression, to the click, to the enquiry, to the conversation, to the purchase and, eventually, the customer's experience after buying from you.
If that journey is broken, advertising will not magically repair it.
5. How much can I afford to spend to acquire one customer?
This is probably one of the most important questions, yet many businesses don't have a clear answer.
Let's say you spend ₦100,000 on advertising and generate 20 customers. On the surface, that might look like a successful campaign because you acquired each customer for ₦5,000.
But is ₦5,000 actually sustainable for your business?
That depends on what those customers are worth to you.
If your profit after fulfilling an order is ₦3,000, spending ₦5,000 to acquire that customer isn't a sustainable growth strategy. You may be generating customers while losing money.
On the other hand, if each customer generates ₦50,000 in profit and has a strong likelihood of buying from you repeatedly, the economics look very different.
This is why customer acquisition cost matters.
You need to understand how much you can reasonably afford to spend to acquire a customer, rather than simply deciding on an advertising budget because that is what you think you should spend.
The question should not only be, “How much money do I have available for ads?”
It should also be, “What return does this business need from that money for advertising to make sense?”
The problem isn't advertising. The problem is advertising without a strategy.
I want to be clear about something: this is not an argument against Facebook or Instagram ads.
There are businesses that can grow significantly through paid advertising, and there are businesses for which advertising can be one of the most effective customer acquisition channels available to them.
The problem is assuming that because advertising works for one business, it must automatically work for yours.
Your competitor might be spending ₦500,000 every month on Facebook and Instagram ads. That doesn't mean you should.
They may have a completely different customer acquisition cost, profit margin, customer lifetime value, offer, brand recognition, conversion rate or sales process.
You are looking at their advertising activity without seeing the business economics behind it.
And that is dangerous.
You don't know whether their campaign is profitable. You don't know how many customers they are actually acquiring. You don't know how much they are spending to acquire those customers. You don't know whether those customers are returning.
You only see the advert.
This is one of the reasons I am cautious when a business owner says, “Our competitors are running ads, so we need to start running ads too.”
Competition can be a reason to examine your marketing strategy, but it shouldn't be the reason you blindly copy someone else's.
More visibility does not automatically mean more growth
One of the biggest misconceptions about advertising is that more attention automatically leads to more business.
It doesn't.
You can get more impressions without getting more customers.
You can get more clicks without getting more sales.
You can get more enquiries without getting more revenue.
You can even grow your social media following without meaningfully growing your business.
This is why business owners need to be careful about measuring activity instead of outcomes.
There is nothing wrong with tracking impressions, clicks, engagement or reach. Those metrics can help you understand what is happening within a campaign.
But ultimately, you need to connect your advertising activity to the business result you actually care about.
If the goal is sales, measure sales.
If the goal is qualified leads, measure qualified leads.
If the goal is bookings, measure bookings.
And if you cannot establish whether the money you are putting into advertising is producing a worthwhile return, increasing the budget doesn't suddenly make the strategy better.
It simply increases your exposure.
Sometimes the answer is not “run more ads”
This is perhaps the most important point I want business owners to consider.
When sales are slow, the instinct is often to look for more customers.
And when there aren't enough customers, the next instinct is often to advertise.
But what if the problem isn't that you need more people?
What if the people already seeing your business aren't convinced?
What if your offer needs to be improved?
What if your positioning isn't clear?
What if your prices don't make sense for the market you're targeting?
What if your sales team isn't following up properly?
What if existing customers could be buying more frequently?
What if your referral process is almost non-existent?
What if your business has a retention problem rather than an acquisition problem?
These are difficult questions because they force us to look beyond advertising.
It is much easier to say, “We need more leads,” than to examine why the leads we already have aren't converting.
And it is much easier to increase an advertising budget than to rethink an offer that isn't resonating with the market.
But sustainable growth often requires us to do the harder work.
The goal isn't to avoid advertising. It is to earn the right to advertise.
Advertising can be one of the most powerful tools available to a growing business.
But it should amplify something worth amplifying.
Before you put more money behind an advert, make sure you have an offer that people actually want, a clearly defined audience, a compelling reason for them to choose you, a conversion process that can turn attention into revenue and a clear understanding of what it costs you to acquire a customer.
Because when the foundation is weak, more advertising doesn't necessarily mean more growth.
Sometimes, it simply means more people get to see what has failed to work.
So, as a business owner, before you ask:
“How much should I spend on ads?”
Ask the more important question:
“Is my business ready to be amplified?”
That question could save you far more than the ₦100,000 you were about to spend.
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