Currently, Facebook is the biggest social media platform in the world. There are 1.6 billion daily active users and over 2.41 billion monthly, therefore Facebook it is an excellent place for promoting local business. Properly targeted Facebook ads can be very useful for any kind of local business. If you don’t have any advertising campaign on Facebook, you are likely missing many opportunities to make money.  

Facebook Ads Aims for Local Business

Every local business owner wants to make money, which means that more customers pay through the door, but the Facebook ad campaign, that focuses solely on this goal, is too broad. For your ads to succeed, you need to break this overarching goal into two aims:

1. Brand awareness. You have to make more of the right people (your local, target market) to know about your business. So, the next time they need a business that provides your product or service, you will be the first one who comes to their mind.

2. Social proof. Make your business trusted, reliable, and popular in the community. So what you need to do is encourage the online community to share the information about you and your business through the digital-word-of-mouth (for example, a Facebook share with a friend). This will create a buzz around your business and you will look like a place, that people have to visit (in your area).

Why Facebook Ads Work for Local Business 

  • People don’t search on Google for products they buy locally and often. The first place that local businesses usually start their online advertising is Google. Most businesses consider this is the best thing to start from, but not really. When people usually buy something on the spot and on a more regular basis, such as groceries, dry cleaning, or cosmetics, they probably aren’t going to search the Internet to buy these things. Probably, they just want to go to the nearest store to get them now. Thus, to stimulate sales in the store with the help of online ads, you should be able to focus on the right people in your local area and target them somewhere that they will see it. The only platform that allows you to do both of these things is Facebook.
  • You can easily target people in a specific geographic area of your business. Facebook allows you to purposefully target your ads to one or more cities. This allows you to display ads only to people who can walk or drive to your store.
  • You can easily provide coupons and offers. Using either the third-party Facebook coupon app or the Facebook Offers app, you may easily advertise your coupons and drive people to ask them on Facebookю
  • You can reach out to the people who have dealt with you already. Facebook Custom Audience allows targeting options, that will reach people whose email address or phone number you’ve collected. And if you use any loyalty program, you will have such information.

How Much Do Facebook Ads Cost for Local Business

The average cost of advertising on Facebook for local businesses is $0.97 per click (CPC) and $7.19 per thousand impressions (CPM). If your advertising campaign is aimed at getting likes or application downloads, you can expect that on average you will need to pay $1.07 per like (CPL) and $5.47 per download (CPA). 

Average Facebook Advertising Cost for Local BusinessBidding Model
$0.97Cost-per-click (CPC)
$7.19Cost-per-thousand-impression (CPM)
$1.07Cost-per-like (CPL)
$5.47Cost-per-download (CPA)

Although these data are based on in-depth research, which estimates nearly $300 million in Facebook advertising spend, these numbers are only average. 

Your local business may see higher or lower Facebook ads costs.

How to Use Facebook Ads for a Local Business

The most effective way to attract new customers is to use Facebook ads and offer people something valuable for free. Unlike Google Ads, people are not actively looking for your products, so you cannot expect them to buy something from your ad, even if they are interested in it. Google Ads are so powerful as you can show them to people who are interested in purchasing your products or services right now. With Facebook ads, you don’t have the same intention to profit. You don’t know what people think about when they are on Facebook. So you need to give them something to arouse their interest – something that brings value to your audience.

Instead of directly promoting the product or your business, you have to promote the value or benefit that customers will receive by clicking on your ad. As we mentioned before, users can be not interested in buying your product right now. However, if you choose the right target audience, you can easily offer your consumers something valuable related to your products or industry to attract them as a qualified lead for future conversion.

Now, let’s proceed to the 5 main ways of how to run a Facebook Ads for a local business: 

1. Target the right audience. Facebook provides the most important targeting option for a local business, which is the possibility to target people in your direct geographic location. Secondly, you may also focus on people who are interested in your products, as well as select the gender and age necessary to use your products. The only thing to keep in mind is that your audience size should be between 50,000 and 100,000, so you can track this on the right side of Facebook Ad Creator.

An easier way to target is to use a LookAlike audience. Customizable audience targeting allows you to focus on specific people through Facebook ads. To make it right, all you have to do is upload to Facebook your list with email addresses. Facebook will match them with the corresponding Facebook account and show these people your ad. 

Lookalike targeting allows you to reach people who are similar to your current customers. This makes it easy to find new people to target without spending hours on different targeting options. As with custom audiences, you just need to upload to Facebook your customer’s email list. Then Facebook will match them to their corresponding Facebook account and find similar interests and demographic information compare to them. Afterward, Facebook will find and target your ad to other people who match this generalized set of information.

2. Give people a reason to click. As we said before, Facebook ads require an incentive for you to click. Most likely, people don’t think about buying anything when they see your ads on Facebook. So what is the best tool that will make people not only click on your ads but also make them interested in buying your products or services from you? The answer is a coupon! But it should not be something crazy like 75% off. A discount of up to 25% will generate a click from someone if it belongs to the nearest local business from which they can buy.

3. Tracking Facebook ads. So, you have landing page settings for your ad and coupon. Now it’s time to track your ad statistics. If you use both Facebook Advertising Manager in Wishpond and the coupon application, you can automatically track all indicators of both your advertisement and the landing page, from the number of ad views to the number of conversions (declared coupons) on the coupon page. The only number you need to focus on is your cost per conversion. It will display you how much you spend to get one sale lead for your business. And as long as the cost of one sales lead exceeds the amount that you pay for it, your Facebook ads are profitable. And you may keep running them.

4. Layer your ads. Consider the layers as filters that you place on top of your main advertisement. Thus, you mix demographics with local awareness and communicate with people in the area who have certain inclinations and are in the right place.

Facebook provides you many options when it comes to targeting your ads. 

However, there are a few things to keep in mind when you filter your ads on Facebook using any of these methods – specificity is more expensive. 

Keep in mind that the smaller and more specific you define your advertising audience, the more expensive it will be their reach. Try to find good middle ground, not too wide and not too specific. In some places, fewer layers are required.

If your business is in the center of New York, you can add additional layers to create specific ads (especially with local business ads).

Unless you have a large number of pedestrians or demographic differences in where your business is located, you won’t be so detailed with your layers if you want your ad to show. Facebook offers real-world controls that deliver ads to the most interested customers.

5. Optimizing your Facebook ads. It doesn’t matter how successful your return on investment (ROI) is you will always want to find ways to boost it up. So, what can help you to optimize your Facebook ads and get better ROI is testing, especially the A/B test. A/B testing is a marketing strategy in which two versions, A and B (Control and Processing) are tested against each other. The goal is to identify changes that increase the likelihood of what you want to happen.  

It requires you to create several versions of your Facebook ads to test against each other. In each case, you make only one variable of the Ad different. Therefore, if you are conducting A/B testing of your headline, use a different one for each variation, however, don’t change the image and description of the Ad. This way you will exactly know what it is the headline that’s causing the differences in ad ratios and nothing else. We recommend you to test both advertising options at the same time. This will make it as quick and cheap as possible to see which option is best converted. You can conduct multivariate testing, in which more than two options are tested simultaneously. But it takes more time and money to see which option is the best.

Conclusion

If you are a local business owner, you have to set up a Facebook advertising campaign and leave it running (until the creative or audience is exhausted). This will serve as the basis for all your digital marketing efforts and will encourage more customers to contact or visit you. Also, while your Facebook ads still running, it is recommended to place various campaigns on top of this engagement campaign, it will help you to be more visible and attractive. 

The success of your Facebook ads will largely depend on your distribution, how well you target your audience. It may play a critical factor in your advertising campaign, therefore it is better to get a hand from professionals. Let your original ad show for a while, analyze the results and don’t be afraid to test. The audience, budget, and creativity must be checked optimized every time. Run two, three or four campaigns against each other and see what works better. 

Launch Facebook Ads for Local Business with Dewzilla

As we determined before it is highly important to customize your advertising campaign correctly. Dewzilla is a digital marketing company that specialized in customized Facebook ads for local businesses. Our professional marketers will analyze your business, products or services and pick up the right strategy to go on. They will choose the most suitable options of ad types, target the audience and set up the ads budget. We totally understand the importance of Facebook ads and ready to launch the marketing campaign that will work for your local business. Dewzilla is worried about its clients and doing the best to make them happy.

Contact us and our managers will provide you with all the details 

HELLO@DEWZILLA.COM

(447) 366-491-118