Should local businesses invest in Facebook advertising? Unlike large businesses with abundant resources, local businesses often have a more limited budget for marketing. Therefore, choosing an effective promotion tool is a difficult decision. However, with more than 5 years of experience in the advertising field, I still encourage local businesses to use Facebook advertising to find more customers.

Consider Facebook advertising as an investment portfolio, even if you do not have a large budget, you can still start advertising because Facebook advertising does not require as much cost as traditional marketing tools.

Facebook advertising brings many benefits to businesses, including local businesses. Understanding the benefits of Facebook advertising plays an important role in deciding whether to implement it or not. We also provide detailed step-by-step instructions to create an effective advertising campaign for local businesses.

Introduction to Facebook ads for local businesses

Local Facebook advertising is advertising specifically for businesses that want to promote to target audiences who are people in a certain locality.

This advertising is suitable for businesses that provide services directly to customers or for some reason, they can only provide services and products to customers nearby. With this type of advertising, they can reach the exact target group in certain areas at a certain time.

Local advertising often helps businesses increase brand awareness to people in the surrounding area. Local businesses often have a potential customer base of people living in the local area, using traditional advertising tools can be more expensive than implementing an online campaign. Therefore, many local businesses use Facebook ads to expand their customer network.

Pros of Running Facebook local advertising

Build Brand Awareness

Before you want to sell to customers, think about how local residents can know about your business. A social media ad with basic information such as address, main services provided, contact information will help more people know about you. Although there are many other traditional methods, think about how much money and time Facebook advertising can save you.

Lower cost

If you compare the cost of Facebook advertising with other advertising methods, Facebook advertising will certainly cost less, which also means that small businesses will find it easier to start with Facebook advertising.

Targeting the Right Audience

User targeting options can help you target the right target audience you want. Including choosing to target location, behavior, or demographic.

Targeting the right target audience will help you save significantly on advertising costs, and this is also related to the conversion rate of the ad. If your ads reach people who are actually interested in your products/services, your conversion rate will be much higher.

Drive foot traffic

Attract customers to your store by advertising events or promotions specifically for local residents. You can set your ads to only show to people in the area and in need. So it's only a matter of time before they visit your store. In some cases, customers don't even know you exist, and they have to choose businesses further away.

Should You Hire An Agency For Running Facebook Local Advertising

Hiring an outside service may seem expensive, but if you look at it in general, agency businesses with many years of experience will help you optimize your advertising. Compared to the cost of hiring an agency to support advertising, the waste of running ads yourself without efficiency will be much greater.

This is only true if your business does not have an expert for Facebook advertising. If so, we encourage you to research and hire a professional agency to take on this task. Luca Marketing Agency has more than 9 years of experience in the field of Social media advertising. We provide advertising account rental and advertising account sales services.

• What you will get when using our Facebook advertising account rental service:

• Free social profile - fanpage - 1st proxy

• Test account with a low budget before scaling (1 account 50$ limit)

• Replace disabled accounts without a fee

• All niche/product are accepted

• Get advice and support from experts with more than 3 years of experience

• Implement campaigns easily, quickly and effectively

Contact us for free consultation.

If your business can run Facebook ads yourself, you can refer to the optimal Facebook advertising running process for local business in the following section, we summarize the key issues that you need to pay attention to during the Facebook advertising implementation process to achieve effectiveness.

Step By Step How To Create Facebook Advertising For Local Businesses

Define your audience

We are guiding businesses with small budgets, or just starting out. Identifying the right target audience will help you save a lot of costs. However, even for large businesses, identifying the target audience is still the most important thing when preparing to launch an advertising campaign. Draw a portrait of your potential customers, from this portrait you will know what you need to do to attract them, you need to know who they are, what their pain points are, their barriers, ... this information will help you in the process of positioning customers as well as creating content.

Create Compelling Content 

Before we get into how to create engaging content, you need to understand what engaging content is. It can be eye-catching images, funny jokes, or interesting facts. To create content that truly engages your customers, you need to really understand your customers. Or if you have the ability, test what type of content will work for your target audience. Types of content to consider for your advertising campaigns

Memes: brand awareness

User generated content : CTA foot traffic 

Customer testimonials: Build trust

Setting up local business ads

The process of creating an advertising campaign for a local business is not much different from the normal process. The only difference is that you need to do one more step, which is to choose the location of the target audience. You need to do this step because your target audience is local residents. You can refer to the complete process at: Facebook Advertising: A Comprehensive Guide for Beginner

Best ad formats for local businesses

Direct advertising with local footprint

A simple advertisement with the goal of increasing brand awareness, helping residents around the area to know your business. You only need to provide basic information, of course, which is equally important, including: Store name, store address, products/services, opening hours, contact information. If your initial goal is just to increase brand awareness, then you only need a simple advertisement providing information to customers. If you want to convert users into customers, please refer to the following types of advertising.

Event advertising

Advertising upcoming events is also one of the solutions that can encourage customers to learn more about your store. Don't forget to offer promotions or gifts, discounts to motivate buyers to visit the store. You can choose Facebook's event advertising feature for this type of advertising. Highlight the necessary information including address, contact information, and event time so that customers can easily access it.

Users can click to like, register to participate, display multiple locations on Page, Calendar, as well as on users' News Feed.

Local-specific offers

Increase conversion rates with offers exclusively for local customers, create a special offer for surrounding residents and encourage them to visit the store to receive the offer. This ad will help you increase foot traffic to the store. You can create a promotion or trial program for opening day, holidays, etc. For a new business, cost is one of the barriers that makes customers hesitate when making a decision, so with promotions, people will be more motivated to visit and buy your products/services.

Budgeting and bidding for local ads

Setting the right budget and bidding strategy is crucial for maximizing the effectiveness of your Facebook ads while keeping costs under control. Here’s how you can allocate your ad spend wisely:

Setting a Realistic Budget

If you're new to Facebook advertising, start with a modest daily budget—$5 to $10 per day—until you determine what works best for your local audience. Facebook allows you to set:

• Daily Budget: The average amount you’re willing to spend per day.

• Lifetime Budget: A total budget for the entire duration of your campaign.

For local businesses, a daily budget ensures consistent visibility without overspending.

Choosing the Right Bidding Strategy

Facebook offers several bidding options depending on your campaign goal:

• Lowest Cost (Automatic Bidding): Facebook optimizes ad delivery to get the most results for your budget. Best for small businesses with limited budgets.

• Cost Cap: Helps control your average cost per result, ensuring you don’t overspend.

• Bid Cap: Allows you to set the highest amount you’re willing to pay per action, ideal for businesses with a strict cost-per-click (CPC) or cost-per-conversion goal.

For most local businesses, automatic bidding works well initially. As you gather data, you can experiment with cost caps for better control.

Allocating Budget for Best Performance

To get the most out of your budget:

• Focus on high-performing audiences by analyzing your ad insights.

• Invest more in ad formats that generate engagement, such as video ads or carousel ads.

• Adjust your budget based on peak hours or days when your audience is most active.

Measuring success

Top metrics to measure the effectiveness of advertising campaigns that you need to know:

• Metrics measuring Ad Spend Efficiency: including Reach, Impressions, Click Through Rate.

• Metrics measuring costs include Cost Per Click, Cost Per View, Cost Per Lead, Cost Per Action.

• Metrics Measuring Audience Engagement: including likes, shares, comments, and overall interactions.

• Metrics measuring success: Conversion Rate

To evaluate the effectiveness of an advertising campaign, you need to understand the relevant indicators and evaluate them based on the initial goals. To get advertising data, you can access Facebook Ads Manager or Meta Business Suite. These are two tools that Meta provides for advertisers to easily create and manage ads. Here you can access and view the indicators related to your ads.

Conclusion

Advertising your local business on Facebook can be a game-changer when done right. By setting up a well-optimized Facebook Page, choosing the right ad objectives, targeting a local audience, and using engaging visuals and compelling copy, you can drive more customers to your business. Don’t forget to monitor your ad performance and adjust your strategy based on insights to maximize results.

With the right approach, Facebook Ads can help your local business gain visibility, attract new customers, and build long-term relationships. Start experimenting today and watch your business grow in your community!