Imagine this: you’re spending ₹10L/month on Meta ads, but you’re only seeing ₹12L in revenue. That’s a ROAS of 1.2x. So, you think, “Maybe I need to increase the budget.” But here’s the harsh reality—scaling a broken system just loses money faster.
This exact scenario happened with a fast-growing D2C brand. The founder came to me, frustrated that their ads weren’t performing better. They were spending a significant amount on Meta ads, but the returns weren’t adding up.
What was the issue? A hidden mistake that most brands don’t even realize exists: Meta’s Auto-Placement Trap.
🚨 The Auto-Placement Trap: A Silent Budget Drain
Many brands trust Meta’s default settings, especially the Auto Placement feature, assuming the platform will work its magic. Meta’s AI is designed to place ads across Facebook, Instagram, Messenger, and the Audience Network based on what it deems to be the best-performing placements.
Sounds smart, right?
But here’s the dark truth: Meta prioritizes cheaper placements that get clicks but DON’T actually convert. For example, Audience Network, which places ads on third-party apps and websites, might look like a good deal—but it’s often a waste of budget. Similarly, Messenger Home Ads and In-stream Video Ads may generate clicks, but they rarely lead to conversions.
For this particular D2C brand, a shocking 42% of their ad budget was being allocated to low-converting placements like these:
- Audience Network (spammy third-party sites)
- Messenger Home Ads (low purchase intent)
- In-stream Video Ads
Meanwhile, a staggering 88% of their conversions came from just two placements:
- Instagram Feed
- Facebook Feed
🔥 The Solution: Manual Placement Optimization
After a deep audit, we knew we had to make a change—and fast. Here’s what we did in 3 simple steps to stop the budget bleed:
✅ Step 1: Audit the Data
We started by diving into the past performance data in Ads Manager. Going to the Breakdown section and selecting Placement, we could immediately see that certain placements were eating up the budget without delivering conversions.
✅ Step 2: Manually Control Placement Weighting
We didn’t trust Meta’s AI anymore. Instead, we manually adjusted the placements. Here’s what we did:
- Turned off Audience Network, Messenger Home Ads, and Instant Articles—all the placements that were draining the budget without generating sales.
- Focused only on Instagram Feed, Facebook Feed, and Instagram Stories—the placements that consistently drove conversions.
- Adjusted the budget split: 60% Instagram, 30% Facebook, and 10% Instagram Stories.
✅ Step 3: Test, Scale, and Optimize
Once the new placements were in place, we didn’t just sit back and wait. We kept testing, scaling, and optimizing based on performance. Within 14 days, the results were nothing short of spectacular.
📊 The Results: A Budget Recovery of ₹4L
Before our optimization:
- ₹10L spend → ₹12L revenue (1.2x ROAS)
After optimizing the placements:
- ₹10L spend → ₹38L revenue (3.8x ROAS)
That’s a staggering 3.8x return on ad spend, compared to just 1.2x before.
By making this one setting change, the brand recovered ₹4L from their monthly ad spend and saw a 28% drop in cost per lead (CPL). This wasn’t just a small tweak; it turned their ad campaign into a revenue-generating machine.
🚀 Key Takeaway: Don’t Trust Meta’s Defaults—Control Your Budget
The moral of the story? Never trust Meta’s default settings when it comes to ad placements. Meta’s AI is designed to spend your budget in ways that might not align with your conversion goals. If you don’t take control of your ad placements, Meta will happily spend your money on placements that don’t deliver results.
Take control of your ad spend, optimize placements, and start seeing the results you deserve.
💡 Are You Checking Your Ad Placements?
If you’re not manually controlling your ad placements, you might be wasting money without even realizing it. Have you audited your Meta ads lately?
Don’t let Meta’s default settings burn your money—take charge, optimize, and scale with confidence!