No, it doesn't. You are doing it wrong. You really are.
What you are failing to take into account that a higher reach equates with your picture on more people's news feeds, which will (if done properly) lead to more fan interaction - and ultimately, more "likes". Part of my day gig is online advertising and I do a lot of this for local businesses and IT WORKS. It works for my band, too. When I do a Facebook campaign for a local business, they see results in terms of dollars. My band sees results in terms of more people at the show and hence more merch sales.