Is Facebook Ads No Longer Working? Why CPL Is Rising and How to Lower It in 2025

If you’re running Facebook Ads in 2025, you’ve likely noticed: the cost per lead (CPL) keeps going up. A few years ago, $1–2 per lead was standard in many niches — today, that figure feels out of reach.

Advertisers are asking the obvious question: Does Facebook Ads still work? Is it worth investing in this platform, or is it time to shift budgets to TikTok, Google, or Telegram?

Here’s my honest answer: Yes, Facebook Ads still works — but only if you adapt to new strategies.

Why Is the Cost per Lead Increasing in Facebook Ads in 2025?

There are several key reasons:

🔸 Rising competition. The platform is saturated, and CPMs increase every year.
🔸 iOS 17 privacy updates have made conversion tracking even harder, so Facebook’s algorithms are less efficient.
🔸 User behavior has changed. People are banner-blind and don’t respond to generic ads like they used to.
🔸 Creative fatigue. Many advertisers are reusing the same formats for years without testing new ones.

🔥 What it means for you: If you run ads “the old way,” they’re likely to underperform — or worse, lose money.

How to Properly Test Creatives and Audiences in 2025

Creative and audience testing is key to lowering CPL.

Test at least 3–5 creatives in parallel.
✅ Use A/B testing at the ad set level.
✅ Change only one element at a time: headline, image, description, or CTA.
✅ Try dynamic creatives — let Facebook mix and match texts and visuals.

Audience targeting tactics:

  • Lookalikes based on top customers are still effective
  • Narrow interest + behavior targeting often outperforms broad assumptions
  • Broad targeting with AI optimization works well with bigger budgets

🔥 Pro tip: Facebook performs better when you send strong on-site signals. Make sure you’ve set up event tracking and Conversion API correctly.

New Retargeting Approaches After iOS 17

The iOS 17 update made retargeting more difficult by restricting data tracking — but it’s still possible.

What works in 2025:

Engagement-based retargeting on Facebook/Instagram (video views, saves, likes, comments)
Email-based retargeting using your CRM lists
Server-side retargeting via the Conversion API
Step-based retargeting sequences:

  • Video viewers → website visitors → cart abandoners → conversions

🔥 Pro tip: Warm audiences convert best with native video ads, not static banners.

Do “Gray-Hat” Funnels Still Work in 2025?

In 2025, gray-hat offers and borderline policy violations are more unstable than ever. Facebook’s detection systems have improved significantly.

What no longer works:

  • Cloned business pages and fake accounts
  • Basic “get-rich-quick” schemes and crypto scams
  • Clickbait claims (“Make $1,000 in 1 day!”)

What still works (but unreliably):

  • “White site – gray offer” bridges
  • Niche CPA campaigns with high-quality storytelling
  • Messenger or lead form funnels with off-platform nurturing

🔥 Conclusion: If you want long-term, stable performance, focus on white-hat projects with real user value.

How to Make Facebook Ads Profitable in 2025

📌 Here’s the working formula:

🔹 Creative → Offer → Audience → Analytics

✅ Build platform-native content — Reels-style videos, product demos, UGC
✅ Use retargeting and automated funnels
✅ Audit your funnel: identify where you’re losing leads
Continuously test new hypotheses — Facebook rewards active advertisers
Optimize your landing pages — sometimes the problem isn’t the ads, but the conversion rate

Conclusion

Yes, Facebook Ads in 2025 is more expensive — but it still works if you play by the new rules.

🔹 You can’t run ads the same way you did in 2020
🔹 You need to test, optimize, and analyze consistently
🔹 Success depends not just on targeting, but on content, landing pages, and tracking🚀 Want to lower your CPL and make Facebook Ads profitable again?
📩 Request a free ad audit — I’ll review your campaigns and show you exactly where your budget is leaking.