As a business owner, it makes sense that bringing in leads and growing your business is amongst your top priorities, right? 

While there are many ways in which you can encourage traffic to your website – thus moving audience members down your funnel – one medium that can be used, and that has the potential to be quite powerful, is Facebook ads. Facebook advertising can be a really great resource for small businesses; they provide uniquely specific targeting and provide super clear reporting too, so you can see where your dollars are being spent.

While Facebook ads can be one of the biggest assets to growing your business, if not set up correctly, they can also be more costly than their worth.

So, bearing that in mind, are Facebook ads still effective for small businesses? Throughout this article, I’ll take you through the benefits, different types of ads, best practices and outline how you can advertise your small business on Facebook effectively.

Are Facebook Ads Effective for Small Business?

From brochures to email marketing, sponsorships to social media and more, when it comes to marketing your small business, there’s a plethora of channels in existence that you can utilise.

How and where do Facebook ads sit amongst this?

Facebook ads have two unique key benefits that make the platform especially effective for small businesses; targeting and reporting.


Benefits of Facebook Ads for Small Businesses


As a small business, there’s no need for you to broadcast or cold sell your message; at least, not right away. While a big billboard ad could help to grow your business, it will also set you back a good couple of thousand dollars… and, the people viewing the billboard aren’t all going to fit within your target audience.

However, that’s not to say that there isn’t a specific audience out there, looking for your particular product or service.

This is where Facebook advertising enters the building, so to speak. Facebook ads let you shift from broadcasting to narrowcasting by offering uniquely specific targeting. Think about it…. According to Statista, there are 11.56 Australians consuming content on Facebook in 2022. This gives Facebook a lot of information, which can be used to target your ads to potential customers.

Using Facebook’s targeting, you can target people by:

  • Language
  • Age
  • Location
  • Interests
  • Retargeting (this can be done by using the Facebook Pixel on your website)
  • Device
  • Custom Audience (upload an email list for retargeting, or create lookalike audiences)

This laser-like level of targeting means that you won’t be wasting your marketing budget on serving ads to people who would never be interested in your offer; you’re able to cut through the noise and deliver content to those highly-targeted people.


The second key benefit to utilising Facebook ads to help in growing your small business is clear reporting. Once upon a time, measuring ROI of traditional advertising erred on the side of difficulty. However, with Facebook ads, you’re able to see exactly where your marketing dollars have been spent by tracking a variety of KPI’s. These include:

  • Reach: The number of people who are shown your ad in their newsfeeds
  • Cost per Click: The cost per click (this could be page like, website click or another goal that you assign)
  • Total Spend: The total amount you spend on an ad campaign
  • Clickthrough rate (CTR): The percentage of people who clicked after seeing your ad

By clearly showing you what the cost of each action is, Facebook makes it much simpler to ascertain if your campaigns are performing well. 


Different Types of Facebook Ads

Another benefit that comes with advertising small businesses through Facebook is that you’re not limited to a single type of ad. The Facebook network has multiple ad types, and allows you to pick and choose which you’d like to use. Some types of ads include:

Image Ads

Image ads are the simplest type of Facebook ad. As the name suggests, this ad type contains a single image that can be used to showcase your product or service.

Video Ads

Similarly, as the name suggests, Video Ads add movement to your ads. These can be places in Stories and News Feeds and are a great way to grab your customers’ attention.

Carousel Ads

Carousel ads are similar to image ads, except they showcase more than one image, and each has an embedded link. These ads are great for if you want to highlight multiple products or showcase different benefits of one product.

Instant Experience

This ad type is unique, in that when a user clicks on the ad on a mobile device, it automatically opens up to fullscreen, instantly giving customers a completely immersive experience.

Collection Ads

These ads are only offered on mobile devices. Collection Ads allow you showcase multiple products in a single ad and have them open like an Instant Experience when a user taps on it. This ad type is really handy, as it allows customers to complete a purchase without having to leave Facebook.

Slideshow Ads:

Slideshow Ads allow you to use multiple images to tell your brand story in a slideshow format. Facebook has built-in features that include branded music, text, formats, overlays and more to help you to create eye-catching slideshow ads.

Best Practices For Advertising Your Small Business on Facebook

If you’ve decided that Facebook Ads are worth your attention and will be an effective tool in helping your business to grow, you need to actually create an ad.

Regardless of what type of ad you choose to use, you want to make sure that the copy you write is compelling and the creative is eye-catching. News Feeds are crowded, so it’s important that your visuals pop and grab the attention of your audience. With that in mind, you want to make sure that the image and/or videos you use include the following:

  • Use bright colours
  • Are eye-catching
  • Display your value proposition
  • Present a clear CTA (call to action)

Following that, you also want to ensure that your copy is  snappy and to the point. Your goal in creating Facebook ads should be to grab attention and clearly demonstrate why users should be interested in your offering. If you combine compelling copy with strong visuals, you should see your CTR and overall ROI increase.

If you’re unsure of what specifications you should be following, you can use this guide that Facebook has created.


When Shouldn’t a Small Business Use Facebook Ads?

While Facebook ads do have the potential to be an effective tool for small businesses, there are situations where it may be harder, or even not worth it. This could include:

  • If your audience isn’t on Facebook. This is where you need to do the homework on your target market. If your audience isn’t on Facebook, then promoting ads on the platform might not be the best fit.
  • You haven’t defined your audience yet. If you’ve not yet conducted research into who makes up your target audience, you should definitely do so before commencing paid ad campaigns. One of Facebook’s strongest playing suits when it comes to advertising is their targeting, so it makes sense that you use that to your benefit!

It can’t be denied – when done so correctly, Facebook Ads can be a really powerful marketing tool for your small business. With laser-focuses reporting capabilities and specific targeting available, Facebook ads can really make a big difference in your business growth.

If you’re looking for more direction or a customised review of your marketing business needs, reach out and book a free consultation today! We’d be so happy to discuss your business goals and needs with you in order to make sure you’re getting the most out of your marketing efforts!

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