Imagine you're running ads for Tony's Pizza in Tampa. Tony's been around 15 years, makes a great pie, but his only marketing is a faded sign out front and some Yelp reviews from 2019. Here's how online ads work for Tony:
Tony gives you $10/day. That's like paying someone to put flyers on doors. More money = more doors. But instead of random doors, Meta puts your flyer on the phones of people who actually order pizza.
You don't put flyers on every door in Tampa. You pick: within 5 miles of Tony's, people aged 25-55, who've ordered food delivery before, who like Italian food. That's targeting. You're choosing who sees the ad.
The photo of the pizza. The headline ("Family Deal: 2 Large Pizzas, $24.99"). The coupon. That's your creative. A boring flyer gets thrown away. A good one makes them hungry and call.
Out of 500 people who see your ad, maybe 15-25 actually tap on it. That's a click. They're interested enough to look closer. Now they're on Tony's page or website.
Out of those 15-25 clicks, maybe 3-5 people actually call, order online, or fill out a form. That's a conversion. That's money in Tony's register. That's what you're paid to deliver.
Tony spent $10 on flyers. He got 3 orders worth $80 total. That's 8x ROAS. For every $1 Tony spent, he got $8 back. That's the number that keeps Tony paying you every month.
When Tony gives you $10/day to spend on ads, here's exactly what happens to that money:
Key insight: Most of the people who see the ad won't click. Most people who click won't convert. That's normal. Your job is to make the numbers work so Tony makes more than he spends. If he does, he pays you forever.
Here's what an actual local business campaign looks like after 30 days. This is the kind of result you're aiming for with your first client:
This business spent $312 and made $4,200. For every dollar they spent, they got $13.50 back. When you show numbers like this on a sales call, the client doesn't need convincing. The math does the selling.
Use this to run the numbers for any niche before you pitch a client. Change the inputs and see if the math makes sense. If it does, it's a good niche. If it doesn't, move on.
How to use this on a sales call: "Mr. Tony, your average pizza order is $27 and you get about 3 orders per customer over time, so each customer is worth about $80. If I can get you customers for $10 each, would you pay me $2,000/month for that?" Pull up this calculator on your phone and show them live.
"Here's how it works in simple terms. I put an ad for your business on Facebook and Instagram. That ad shows up on the phone of people in your area who are already looking for what you sell. When they see it, they tap on it and either call you, book online, or fill out a form. You get the customer, you make money. My job is to make sure you're getting way more back than you're spending on the ads. Most of our clients see a 5 to 10x return — meaning for every dollar they put in, they get five to ten dollars back. And I handle everything. You just answer the phone."
Memorize this. Practice it until it sounds natural. This is how you explain ads to a business owner who's never run one. No jargon. No confusion. Just "I put your ad in front of the right people and you get customers."
You'll hear these terms in Ads Manager. Here's what they mean in plain English: