Short answer
- People already searching for you? Google search ads catch them at the moment of need.
- Need to create demand nearby? Facebook and Instagram ads show your offer to locals who weren't searching yet.
- Tight budget? Start with free visibility (Google Business Profile, reviews) before any paid platform.
- Pick one paid platform first, give it about a month with a clear offer, and judge it by cost per customer.
Two kinds of advertising
Almost every ad platform falls into one of two groups, and knowing which one you need saves a lot of money.
Demand capture means showing up when someone is already looking: Google and Microsoft search ads, and sponsored listings on sites like Yelp. Intent is high, so clicks usually cost more, but people are close to buying.
Demand creation means putting your offer in front of people who weren't looking yet: Facebook, Instagram, TikTok, YouTube and display ads. Clicks are often cheaper, but you need a good reason for people to stop scrolling.
A plumber for burst pipes needs capture. A new bakery needs creation. Many businesses eventually use both.
The platforms compared
| Platform | Type | Best for | Watch out for |
|---|---|---|---|
| Google search ads | Capture | Services people search for: trades, legal, medical, repairs | Competitive keywords can be expensive per click |
| Google Local Services Ads | Capture, pay per lead | Eligible service businesses in supported countries | Availability depends on your category and location; screening required |
| Microsoft Ads (Bing) | Capture | Extra search reach, often with less competition | Smaller audience than Google |
| Facebook & Instagram | Creation | Visual businesses, offers, events, local radius targeting | Needs good photos or video and a clear offer |
| TikTok | Creation | Younger audiences, businesses comfortable on video | Creative must feel native to the platform |
| YouTube | Creation | Explaining a service or product with video | Video production effort |
| Nextdoor | Creation, very local | Home services and neighbourhood businesses | Availability and reach vary by area |
| Yelp ads | Capture | Restaurants and services where Yelp is popular locally | Value varies a lot by city and category |
| Amazon ads | Capture | Products sold on Amazon | Only useful if you sell there |
| Print, radio, mailers | Creation | Older audiences, very local areas | Hard to measure without codes or unique phone numbers |
Most of these platforms are "self-service": you create an account, set a budget and launch yourself. That's great for control, and it also means nobody stops you from wasting money. The rest of this guide is about avoiding that.
Which to start with, by business type
| Business | Start with | Why |
|---|---|---|
| Emergency trades (plumber, locksmith, HVAC) | Google search ads or Local Services Ads | People search urgently and call the first trustworthy option |
| Restaurants and cafes | Instagram and Facebook | Food sells visually; target a few miles around you |
| Salons, barbers, nail studios | Instagram and Facebook | Before-and-after visuals, booking offers on slow days |
| Law firms, clinics | Google search ads (once pages convert) | High-value searches, but expensive clicks |
| Contractors, landscapers | Google search plus Facebook for seasonal offers | Both searching and project inspiration |
| Gyms and studios | Facebook and Instagram | Trial offers to people nearby |
| Online product sellers | Meta and Google Shopping | Visual discovery plus shoppers comparing products |
Mistakes that waste ad money
- Sending ads to a weak page. If the page is slow or has no clear button, more traffic just means more people leaving. Read PPC landing pages before you spend.
- Boosting posts without a goal. The "boost" button is convenient, but a proper campaign with a clear objective and tracking usually tells you much more.
- Targeting too wide. A local business advertising to a whole state pays for people who will never visit.
- No offer. "We do great haircuts" gives no reason to act today. "New clients $20 off, Tuesdays only" does.
- Judging too early. A few days isn't enough data. Give a test a few weeks unless it's clearly broken.
- Tracking clicks, not customers. Count calls, forms, bookings and sales, and ask new customers how they found you.
A sensible first budget
Work backwards from what a customer is worth. As a hypothetical example: if a new customer is worth $200 to you over a year and you're happy to spend up to $40 to win one, a $400 monthly test needs to bring about 10 customers to break even on that target.
Many local businesses start with a few hundred dollars a month on one platform. Below that, platforms like Meta have very little data to learn from, so results take longer to show. For what ad clicks are likely to cost, see CPC vs CPM, and use the free planning tools inside Google Ads and Meta Ads Manager to estimate before spending.
My recommendation
If you're a local business with a clear offer and a page that converts, Facebook and Instagram ads are often the most flexible place to start, because you can target a tight radius and show real photos of your work. That's the ad service I offer (Facebook & Instagram ads). If people mostly search for your service in a hurry, Google search ads may suit you better, and I manage those too (Google Ads management, $250/month plus ad budget). If you'd rather hire someone else, read Hire a Google Ads expert first.