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How to Create and Run Local Facebook Ads That Actually Work

Published by Small Town Startup on

So, you’re finally ready to give Facebook ads a shot. Maybe you’ve hit that wall where organic posts aren’t cutting it anymore, or maybe you just want to get your business in front of more local customers without wasting money on ads that do nothing.

Either way, welcome to the world of Facebook ads where $10 can get you in front of hundreds of people…or disappear into the void if you don’t do it right.

Let’s make sure you do it right! Here’s what to do:

Step 1: Set a Goal 

Before you touch Ads Manager, ask yourself:

What’s the point of this ad? Are you trying to:

  • Get more people to visit your store or website?
  • Promote an event?
  • Grow your email list?
  • Sell a specific product?

If you don’t define what success is from your ad, it’ll be hard to know if the ad is working. Make sure to pick a goal and stick to it to give yourself a better understanding of your return on investment.

PRO TIP: If you’re just starting out, focus on engagement, lead generation, or website traffic. Conversions (like actual sales) require more testing and a bigger budget.

Step 2: Decide How Much to Spend

Good news: Facebook ads don’t require a big budget.

Here’s a solid starting point for local businesses:

  • $5/day = Basic awareness & engagement (good for getting locals to know you exist)
  • $10/day = Website traffic, lead generation, and event promotion
  • $20-$50/day = Serious sales and conversions (best for e-commerce or established businesses)

If you’re running a short campaign (like a weekend event), plan to spend at least $10-$20 per day for 5-7 days depending on the size of the audience in the area you’re targeting.

If you’re running an always-on ad to keep your business top of mind, start with $5-$10 per day and test from there. Don’t forget to check it every other day!

 

Step 3: Target the Right People

Facebook gives you three ways to target people. Before you begin, it’s important that you have a user persona you’re going after. 

Location Targeting

This one’s easy, only show your ads where your customers actually are.

  • If you have a storefront, target a 5-15 mile radius around it.
  • If you serve a whole county, target that entire county.
  • Avoid targeting an entire state (unless you’re selling online).

Demographic & Interest Targeting

  • Age & Gender: Think about who actually buys from you regularly - this will help you choose these.
  • Interests: Target based on what your customers already like. If you run a coffee shop, target “Coffee Lovers” or “Local Events” instead of just “Springfield, TN.”
  • Behaviors: You can target people who recently moved, have recently gotten married, commute to work, have kids, or love shopping small.

Custom Audiences (The Secret Sauce)

This is where things get fun. Instead of blindly guessing, upload a list of past customers, website visitors, or email subscribers, and let Facebook find more people like them. How this works is they’ll first find folks on that list on Facebook, then they’ll review their behaviors online. From there, they’ll find others who behave like them. 

Step 4: Write an Ad That Sparks Interest

If your ad looks like spam or feels like a sales pitch, people will scroll right past it. Here’s how to make them stop and pay attention:

Keep It Short & Conversational

Bad: “Come to Willie Mae’s BBQ. We have the best ribs in town! Open daily.”
Better: “Big game this weekend? Grab a rack of our fall-off-the-bone ribs and make your house THE spot for watching football.”

Use a Great Image or Video

  • Photos should be bright, high-quality, and attention-grabbing.
  • Videos (even quick phone clips) perform way better than text-heavy images.
  • Avoid flyers or graphics with too much text, Facebook will penalize them and may not even run the ad with them.

Include a Strong Call to Action (CTA)

Tell people exactly what to do next:
  • "Click below to order now."
  • "Stop by today and get 10% off."
  • "RSVP now before spots fill up!"

PRO TIP: Adding urgency works—people are more likely to act when they think they might miss out

 

Step 5: Choose the Right Ad Format

Facebook will try to push fancy ad formats on you, but keep it simple.

  • Single Image or Video Ad: Best for quick promos & brand awareness
  • Carousel Ads: Best for showcasing multiple products
  • Event Ads: Best for getting RSVPs to a local event
  • Traffic Ads: Best for getting people to click to your website

If you’re new, stick with a single image or video ad. It’s the easiest to set up and works well for most small businesses.

 

Step 6: Monitor & Adjust (No One Gets It Perfect the First Time)

Once your ad is running, DON’T just let it sit there. This is when the fun begins! Now is the time to watch it and adjust as you see people starting to engage with it.

Check it daily to see how it’s performing. Here’s what to look at:

  • Reach: How many people saw the ad?
  • Engagement: Are people liking, sharing, or commenting?
  • Clicks: Are people actually clicking the link?
  • Cost Per Result: Is it costing too much to get a lead or sale?

If an ad isn’t working after 3-5 days, tweak something:

  • Change the image or video
  • Rewrite the text
  • Adjust the audience targeting

Facebook ads aren’t magic, but when done right, they’re one of the best (and cheapest!) ways to reach local customers. Start small, test what works, and adjust as you go. The more you experiment, the better your ads will get.

Now go run some ads and get those customers rolling in!