Do Facebook Ads Work for Small Businesses

Oct 12, 2020

Facebook ads for small businesses can be effective to increase brand awareness and drive traffic to your website if you first define your strategy.

Facebook continues to grow in popularity among social media users. More than 2.2 billion people use Facebook to connect with friends and family. Because of it's popularity and its extensive audience, Facebook ads is an effective tool to help small businesses grow. But the problem is that 62% of small businesses who advertise on Facebook feel like their ad strategies are not working. I don't know of any small business owner who wants to throw money away on strategies that don't work.

Are Facebook Ads Effective for Small Businesses?

The first step is to look how to create a successful strategy before we place the blame on Facebook ads for failing small businesses. Often the real problem begins with a lack of strategy and planning on the part of the small business owner. Many small business owners take a do-it-yourself approach when running their businesses. With limited cash flow they choose to handle everything themselves whether they know how to do it or not. Marketing, accounting, sales, and other day-to-day business processes require some expertise, to be effective implemented. Not all small business owners are experts or even partially knowledgeable about these complex tasks. Failing to implement the foundations for a successful Facebook ad campaigns will certainly guarantee its failure. The first place to begin is with your marketing funnel. At what stage of the funnel are you trying to reach with your Facebook ads? If you've been creating Facebook ads for your small business and not seeing results, look first at your strategy. Do you have a strategy for running Facebook ads? Without a strategy, h ow do you know what type of ads to create? With a small businesses limited marketing budget, the last thing you want to do is guess about what might work.

Determine Your Facebook Ads Objective

Defining your ad campaign objective is the first step in a successful strategy. Your objective will help you determine how you're going to measure results. Over 72% of small business owners said their goal for advertising on Facebook was to increase brand awareness. Some of the other goals business owners have when planning a Facebook ad campaign include

  • Attract new customers
  • Increase phone calls and form submissions from new customer
  • Gain more website traffic
  • Improve retention of customers

Track Your Facebook Advertising Metrics

We'll focus on the goal of increasing brand awareness in this post. What are some of the metrics you should measure to determine you're reaching your goal?

measure your facebook ad metrics

Engagement - User engagement shows that people actually like what you're sharing. When content you share receives a ton of likes or comments, Facebook see this as relevant and shows it to more of your target audience.

Reach - This metric measures number of people who see your content on Facebook either through paid ads or organic sharing. Using Facebook ads for small businesses can help you reach a larger target audience.

Impressions - How many times your content was viewed is reported with the impressions metric. If one person viewed your content multiple times, each view increases your impressions metrics.

Referral traffic - How many visitors to to your website from Facebook is measured through referral traffic. This metric includes traffic from people who clicked on the links in your post as well as traffic from people who shared your articles or who visited your website from your profile link.

Page likes and followers - When gain a higher number of page likes and followers, you have the opportunity for your content to be seen by a larger audience.

These metrics help you measure brand awareness when you're getting started with Facebook ads for your small business.

Define Your Target Audience

Understanding your target audience gives you the ability to target specific people based on factors such as: language, interest, location, age, and device. The awareness stage of the marketing funnel, tries to reach as many people as possible to gain more leads. A small business getting started with Facebook ads will want to narrow their target audience to get the most value from their advertising budget. Some of Facebook's targeting options include age, gender, race, location, and interests. To reach a more focused audience, Facebook allows you to upload your email list and create your own custom audience.

Set Your Budget

One of the most common questions is how to budget your Facebook ads for small business. Advertising agencies and social media marketing professionals have different viewpoints on how a small business should set their Facebook ad budget. Some recommend a budget as low as $100 a month while others say you have to spend at least $3,000 a month to be successful.

Your Facebook ads budget should help you reach your target audience. You don't want to spend a lot of money reaching out to the wrong people and end up wasting your advertising dollars. The minimum amount you can spend on Facebook ads is a dollar a day. So with this in mind, you know you have to spend at least $30 a month for your Facebook ads budget.

One method we've recommended is is to spend $1 for every hundred website visitors, or a minimum of $100 per month whichever is greater. While this might sound sound like an arbitrary number, it helps to set the groundwork needed to begin testing what is going to work for your business. When you begin to use Facebook ads, it will amplify other strategies you currently use. By setting an ad budget based on your current website traffic, you begin to collect that dats you need to understand what works for you. With any marketing strategy, you need to give the strategy time to start working. starting a Facebook ad strategy for your small business today doesn't mean you'll increase your revenue by 1000% by the end of the month. It takes time and effort to grow a successful Facebook ad strategy and determine what's going to work for you.

facebook ads budget for small business

Set Your Budget

Now that you've determined your objectives, defined your target audience, and set you advertising budget, the next step is to create your ads. With all the work you've put into your Facebook ad strategy already, you don't want to rush through this step. Some of the options you can choose to create a compelling Facebook ads include:

  • Image
  • Video
  • Slideshow
  • Image Carousel


Whichever ad format you decide on you want to make sure your ad displays your value proposition to your target audience, presents a clear call-to-action, and grabs their attention. To gain inspiration for you ad, look at examples of Facebook ads that have been successful. From your own personal Facebook habits, you know how much information is presented in your newsfeed. Be sure your Facebook ads stand out and grab your target audiences attention. Your visuals should stand out and make them stop scrolling. The goal is to get them to click on your Facebook ad. Effective ads begin with getting your target audience to engage with your ad. The content you write for your Facebook ad should be as interesting and engaging as the visual aspects of your ad.

Facebook Ads Can Help Your Business Grow

Using Facebook ads for your small business can increase brand awareness and drive targeted traffic to your website. Using a well-defined strategy will increase the likelihood of a successful Facebook ad campaign.

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