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5 Common Mistakes Finance Businesses Make on Social Media Ads

Blog
September 22, 2025•4 min read

Social media platforms like Facebook, Instagram, and YouTube have become essential for finance businesses wanting to generate leads and build trust. Yet, many campaigns fail to deliver results because of avoidable mistakes. 

According to Hootsuite’s 2024 Digital Report, around 27% of businesses say their biggest challenge with paid ads is achieving consistent ROI.

This blog will break down the five most common mistakes finance businesses make with social media ads and provide practical solutions to avoid ad waste.

1. What You’ll Learn in This Blog:

  • Top mistakes finance businesses make on social media ads

  • Why these mistakes cost money and leads

  • Practical step-by-step solutions for each mistake

  • How to make campaigns cost-effective and compliant

  • Top mistakes finance businesses make on social media ads

2. Are You Ignoring Special Ad Categories?

Many finance businesses overlook the fact that Meta (Facebook and Instagram) places all credit, housing, and employment ads under Special Ad Categories. 

This restricts targeting options (e.g., no filtering by age, gender, or postcode). Running ads without recognising these rules often leads to disapproval or wasted budget.

Step-by-Step Solution:

  • Familiarise yourself with Meta’s Special Ad Category guidelines

  • Use interest-based targeting, custom audiences, and lookalike audiences to refine reach.

  • Focus on creative and messaging to qualify leads instead of relying on demographic filters.

Why It Matters: Compliance ensures your ads run smoothly and avoids wasting budget on rejected campaign

3. Confusing Ad Copy: Is Your Audience Understanding Your Message?

The Mistake: Using finance jargon like “LVR ratios” or “loan amortisation” can confuse audiences and reduce CTR.

Step-by-Step Solution:

  1. Identify the main pain points of your audience (e.g., first-home buyers, investors).

  2. Rewrite copy in plain English, highlighting outcomes: “Lower your monthly repayments” instead of “Reduce LVR.”

  3. Test multiple CTAs: “Book a Free Consultation” vs. “Check Eligibility Today.”

Why It Matters: Clear, simple messaging drives engagement and builds trust with potential clients.

4. Are You Neglecting the Creative Side?

 Using low-quality images or overly formal graphics leads to low engagement.

Step-by-Step Solution:

  1. Use real-life visuals: happy clients, property highlights, financial calculators.

  2. Incorporate short videos or infographics to explain complex concepts.

  3. Add text overlays for key points since 80% of users watch videos muted.

Supporting Data: Video ads in finance campaigns generate 48% more engagement than static images (Source: Wyzowl, 2024).

5. Are You Targeting the Right People?

 Finance ads are often too broad (“everyone with money”) or too narrow, resulting in low performance.

Step-by-Step Solution:

  1. Identify your existing clients.

  2. Upload them as a Custom Audience in Meta Ads Manager.

  3. Build a 1% Lookalike Audience to find new, similar leads.

  4. Test relevant interests like “homeownership,” “investment property,” or “financial planning.”

  5. Compare performance and optimise based on CTR and conversion rates.

Why It Matters: Targeting the right people increases lead quality and reduces wasted ad spend.

6. Not Optimising Campaigns: Are You Wasting Your Ad Budget?

Many businesses launch ads and forget them. Poor-performing ads continue to run, wasting money.

Step-by-Step Solution:

  1. Track key metrics: CTR, CPL (Cost per Lead), and conversion rate.

  2. Run A/B tests for visuals, ad copy, and CTAs.

  3. Pause underperforming ads; scale winners.

  4. Adjust targeting, offers, and creative weekly.

Supporting Data: HubSpot 2024 reports that companies that consistently A/B test ads see 37% higher ROI than those that don’t.

7. How Can Finance Businesses Avoid These Pitfalls?

Avoiding these mistakes requires a structured approach:

  • Stay compliant with Special Ad Categories.

  • Prioritise clarity and simplicity in messaging.

  • Invest in visuals and video to boost engagement.

  • Build smart targeting strategies based on real data.

  • Continuously optimise to maximise ROI.

8. How Can BIK Media Help Finance Businesses Avoid These Mistakes?

Running social media ads for finance isn’t simple. Special Ad Category restrictions, compliance rules, and competitive audiences make campaigns challenging. BIK Media simplifies the process:

  • Compliance First: Campaigns follow Meta’s advertising guidelines.

  • Creative That Converts: Engaging visuals, videos, and carousels that resonate.

  • Smart Targeting: Custom and lookalike audiences to reach qualified leads.

  • Data-Driven Optimisation: Continuous testing ensures every dollar is spent efficiently.

By combining strategy, compliance, and creative execution, BIK Media turns social media campaigns into consistent lead-generation engines.

8. Conclusion

Social media ads can be one of the most powerful tools for finance businesses — but only if done right. 

By avoiding these five common mistakes, finance brands can reduce wasted spend, improve engagement, and consistently generate quality leads.

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