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Facebook ads for small businesses, are they worth it?

Facebook ads for small businesses, are they worth it?

Leveraging the power of Facebook ads for small businesses can have immense potential to propel your business to new heights.

14 min read
Sep 26, 2023

With over 3 billion monthly active users worldwide, Facebook offers a vast and diverse audience that can be precisely targeted based on demographics, interests, behaviors, and more.

According to Facebook, advertising on the platform offers an astounding 80% higher potential for discovering new brands or products compared to traditional brand or retailer websites.

In this post, we'll discover strategies, tips, and tricks to make your small business ads stand out on Facebook’s crowded digital landscape, driving traffic, conversions, and revenue like never before. Let's dive in!

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Do Facebook ads work for small businesses?

The simple answer is yes. There is an immense potential that cannot be overlooked. Facebook thrives on its diverse user base – spanning locations, ages, and interests.

It's a place where virtually everyone can discover content tailored to their liking. And it's also where your business can connect with its audience, no matter how niche that audience may be.

Consider Facebook ads as your precision tool for reaching your ideal customers. Powered by advanced algorithms and robust targeting options, they ensure your advertisements are seen by the right people.

You can seamlessly engage with local customers by geo-targeting your ads, directing them to your physical location.

Yet, Facebook ads for small businesses are not mere static displays, they get people talking.

Users engage with ads through likes, comments, and shares, organically expanding the brand's reach.

What's more important with Facebook's huge audience, you can get your name out there without spending a fortune.

Even with a small budget, you can get your brand noticed and make people remember you.

10 Facebook Advertising statistics that highlight the importance of Facebook ads for small businesses:

  1. Vast User Base: Facebook boasts an impressive 2.96 billion monthly active users, demonstrating its immense reach potential.
  2. Daily Engagement: With 1.98 billion daily active users in Q3 2022, Facebook offers consistent opportunities for engagement and brand exposure.
  3. Global Appeal: Facebook's user base is not limited to one country. India, the United States, Indonesia, and Brazil have substantial user numbers, making it a global marketing playground.
  4. Demographic Variety: Facebook caters to diverse demographics, with men aged 25-34 being the largest group. This diversity ensures you can reach your target audience effectively.
  5. High-Income User Base: Approximately 75% of high-income earners are on Facebook, making it a valuable platform for businesses offering premium products or services.
  6. Daily Usage: The average U.S. adult spends 30.1 minutes a day on Facebook, ensuring regular brand exposure to a significant audience.
  7. Mobile Accessibility: Nearly 98.5% of Facebook users access the platform from mobile devices, making it crucial for mobile-focused advertising.
  8. Video Dominance: Videos on Facebook generate significant engagement, with users watching over 4 billion video views daily.
  9. Business Adoption: More than 160 million businesses use Facebook to interact with customers, indicating its relevance for business growth.
  10. Effective Advertising: Facebook ads are powerful, with a 9.21% average conversion rate (CVR) and various optimization options, including CTA buttons and video ads.

These statistics underscore Facebook's continued prominence in the digital marketing landscape and emphasize its potential as a vital tool for small businesses seeking to expand their online presence and connect with a wide-ranging audience.

Source: 70+ Facebook Statistics for Every Marketer in 2023

How much should a small business spend on Facebook ads

There is no one-size-fits-all answer to how much a small business should spend on Facebook ads.

Determining the ideal budget for Facebook ads for small businesses can be a strategic decision influenced by several factors such as specific business goals, testing, audience size, ad quality, competition, campaign duration, ROI tracking.

Small businesses should carefully consider these factors and tailor their Facebook ad budget accordingly to achieve the best results within their means. Let’s go through each of them.

- Business Goals: The budget should align with the business objectives. If the goal is to raise brand awareness, a smaller budget might suffice, while more extensive goals, like driving conversions, may require a larger investment.

- Testing Phase: In the initial stages, it's wise to start with a modest budget for testing purposes. This allows small businesses to assess the effectiveness of their Facebook ad campaign without committing substantial funds.

- Audience Size: The size of the target audience plays a crucial role. A larger audience might require a higher budget to reach a meaningful portion of it effectively.

- Ad Quality: Investing in high-quality ad creatives and content can make a smaller budget go further. Well-crafted ads are more likely to engage users and generate results.

- Competition: The competitiveness of the industry and the bidding competition on Facebook can affect costs. Highly competitive industries may require a higher budget to stay competitive in the ad auctions.

- Frequency and Duration: The frequency and duration of the ad campaign matter. Running ads continuously at a lower daily budget can be more cost-effective than sporadic, high-budget campaigns.

- ROI Tracking: Small businesses should closely monitor the return on investment (ROI) from their Facebook ads. Adjusting the budget based on the performance of previous campaigns is a smart practice to maximize results.

However, if you’re looking to spend the absolute bare minimum on Facebook ads, then spending as low as $1 per day can still make a difference.

With a daily budget of $1 and an average CPM of $8.99, you can expect to get an estimated 111 impressions per day on average.

Use our Facebook advertising costs free tool to get an idea of how much other businesses spend on Facebook ads on average, then determine how much you should spend on your own ads.

Pro Tip: Use Revealbot Strategies to reduce wasted ad spend. For example, the strategy “On the safe side” will pause an ad if it has zero conversions after spending more than two times your target cost-per-conversion. Check it out!

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7 tips for running ads for small businesses

Tip #1 – Get educated on Facebook ads

Getting educated on Facebook ads for small businesses is a great way to leverage the platform's advertising capabilities effectively.

To enhance your expertise and ensure a successful ad campaign, consider enrolling in free online training available through Facebook Blueprint.

These courses, such as "Enhance your ads with Ads Manager" and "Create compelling ad visuals" are strategic investments.

Not only do they equip you with essential knowledge, they also pave the way for a higher return on investment (ROI).

Prior to launching your first ad campaign, take the valuable step of mastering the Facebook Ads platform, setting the stage for a more fruitful and efficient advertising journey.

Don't forget to learn everything in the Meta's Advertising Standards!

Not following their guidelines could lead to having your ads rejected or even your ad account restricted!

Tip #2 – Set up Facebook pixel

Setting up a Facebook Pixel is crucial for tracking conversions, optimizing campaigns, and improving ad targeting on Facebook. It allows you to:

  • Track user actions and measure the effectiveness of your ads.
  • Create custom audiences for retargeting.
  • Optimize ad delivery for better results.
  • Understand the customer journey and attribution modeling.
  • Set up custom conversion events aligned with your business goals.
  • Create Lookalike Audiences to find similar potential customers.
  • Track user interactions across devices for a comprehensive view.

How to Set Up Facebook Pixel:

  1. Access Facebook Business Manager.
  2. Create a Facebook Pixel.
  3. Install the Pixel code on your website.
  4. Verify the Pixel's functionality using Facebook's Pixel Helper browser extension.

Setting up Facebook Pixel provides valuable data insights and enhances the efficiency of your Facebook advertising efforts.

Tip #3 – Choose your goal

When using Facebook ads for small businesses, it's crucial to choose a specific goal that aligns with your business objectives.

Your choice of goal will influence your ad campaign strategy and the metrics you track. Here are some common goals for small businesses:

  • Awareness: Use this objective to get your business in front of more people and build brand awareness.
  • Traffic: Aim to bring more visitors to your website, where they can learn more about your products or services.
  • Engagement: Use this objective to encourage likes, comments, shares, and other forms of engagement with your content.
  • Leads: Focus on driving specific actions like online sales or lead generation on your website.
  • App Promotion: Promote your mobile app to increase installations.
  • Sales: Find people likely to purchase your goods or services.

Facebook ads campaign objectives

To choose the right goal, consider your specific business needs, the stage of the customer journey you want to target, and the resources you have available.

Once you've defined your goal, you can create and optimize your Facebook campaigns accordingly.

Tip #4 – Target the right audience

Targeting the right audience is critical for the success of Facebook advertising. Here's how to do it effectively:

1. Upload your customer list

  • Collect a list of your existing customers' contact information, such as email addresses or phone numbers.
  • In Facebook Business Manager, go to "Audiences" and click on "Create Audience."
  • Choose "Custom Audience."
  • Select "Customer List."
  • Upload your customer list or copy and paste the data into Facebook.
  • Facebook will match the information provided with user profiles to create a Custom Audience of your existing customers.

2. Create lookalike audiences from high-performing audiences

After creating your Custom Audience, you can use it as a basis to create Lookalike Audiences:

  • In Facebook Business Manager, go to "Audiences" again and click on "Create Audience."
  • This time, choose "Lookalike Audience."
  • Select the Custom Audience you want to base your lookalikes on.
  • Choose the location and audience size (the percentage of the population in your selected location) for your Lookalike Audience.
  • Facebook will use the characteristics of your existing customers to find and target users who are similar in demographics, interests, and behavior.

By uploading your customer list and creating lookalike audiences, you can efficiently target people who are more likely to be interested in your products or services because they resemble your existing satisfied customers.

This strategy helps improve the effectiveness of your Facebook ad campaigns and can lead to higher conversion rates and ROI.

Revealbot offers a powerful feature for creating lookalike audiences that can significantly enhance your advertising strategy. With this feature, you can effortlessly generate lookalike audiences from multiple sources and locations in bulk, expanding your audience size by up to 20%.

This is especially beneficial as Facebook typically limits this expansion to just 10%.

One of the most exciting aspects of Revealbot's lookalike audience feature is the inclusion of Ad Set Based Conversion Lookalikes.

This advanced capability allows you to continuously create lookalike audiences based on your high-performing Ad Sets.

Known as ABC Lookalikes, this feature leverages the Facebook API exclusively and is fully supported by Revealbot. It uses your ad Campaign and Ad Sets as a starting point and dynamically updates your lookalike audience as you accumulate new conversions.

To learn more about how to make the most of this feature and create effective lookalike audiences in Revealbot, we recommend checking out our Help Center article and tutorial video.

Tip #5 – Set the right budget

Setting the right budget for your Facebook ads as a small business is essential. It's a delicate balance that depends on your goals, financial capacity, and the value you expect to gain.

Allocating a budget that's both comfortable and effective is key. Start conservatively, learn from your Facebook ad campaign, and gradually adjust your budget as you gain insights into what works best for your business.

Remember, it's not just about how much you spend, but how wisely you allocate your resources to achieve your advertising objectives.

Tip #6 – Start with boosting a good-performing post

Leveraging a successful post can be a smart strategy for small businesses diving into Facebook advertising.

Boosting a post that has already shown organic engagement (likes, comments, shares) indicates that it resonates with your audience.

By amplifying its reach, you can build on that engagement. It's a cost-effective way to expand your reach and drive further interest in your products or services.

Simply choose the right post, define your target audience, set a budget, and monitor its performance.

Starting with a strong post as your foundation can help your Facebook ad campaign hit the ground running.

Tip #7 – Create content that resonates with your audience

Creating content that resonates with your audience is a key element of successful Facebook ads for small businesses.

Here's a breakdown of the components to consider:


Your text should be concise yet clear, delivering a message that aligns with your audience's interests and needs. Highlight what sets your product or service apart and why it matters to your audience.

Image or video

Images or videos should visually captivate, maintain brand consistency, and tell a story that complements your call to action.

Incorporate your brand's visual identity, such as logos or colors, to maintain consistency.

Facebook ads example


When it comes to headlines, brevity and relevance are key. They should grab attention, convey value, and spark curiosity.

Crafting content that truly resonates with your audience involves weaving these elements together to create a narrative that engages and inspires action. Use curiosity or intrigue to encourage users to read more.

Call to Action (CTA)

To further boost engagement, incorporate a compelling call to action at the end of your posts.

This might involve straightforward prompts like "follow this link now," "share your thoughts in the comments," or "tap that follow button to stay updated with the latest updates."

By focusing on these elements, you can create ads that captivate your audience and drive desired actions.

Remember that Facebook users scroll through a lot of content, so your ad content needs to stand out, engage, and provide clear value quickly. Tailoring your content to your audience's preferences and needs is key to achieving better results with your Facebook ads.

5 Small business Facebook ads to inspire you

Here are five Facebook ad ideas for small businesses along with explanations of why they can be effective:

1. Product showcase ad: Showcase your best-selling product or a new arrival. Highlight its features, benefits, and why it's a must-have. This ad type is effective because it focuses on a specific product, making it more engaging and actionable for users who are interested in that particular item.

Facebook Product showcase ad example

2. Customer testimonial ad: Share a video or written testimonial from a satisfied customer. Let real customers endorse your product or service. Testimonials build trust and credibility. Prospective customers are more likely to convert when they see positive feedback from others.

Facebook Customer testimonial ad example

3. Special offer ad: Create a sense of urgency by promoting a limited-time discount or special offer. These ads encourage immediate action, motivating users to make a purchase or take advantage of the offer before it expires.

Facebook Special offer ad example

4. Bold colors: ​​Bold, vivid colors naturally stand out in the Facebook feed, where users are scrolling rapidly. When your ad features striking colors, it's more likely to catch the eye amid the sea of content. This initial attention-grabbing moment is crucial to get users to stop scrolling and engage with your ad.

Facebook Bold color ad example

5. Educational content ad: Share informative content like how-to guides, tutorials, or industry tips. Educational ads position your business as an authority in your niche. They provide value to your audience, building trust and engagement.

Facebook educational content ad

Remember to pair compelling visuals, clear messaging, and a strong call to action (CTA) with these ad ideas to maximize their effectiveness in reaching and engaging your target audience.

Sources: 100+ Best Facebook Ad Examples By Industry/Type [2023 Update] | 165 Best Facebook Ad Examples: The Internet’s Ultimate List

Wrapping up

In conclusion, Facebook advertising offer a wealth of opportunities for small businesses to thrive in the digital landscape. With precise targeting, cost-effective options, and the ability to craft engaging content, Facebook ads empower businesses to connect with their ideal audience.

By setting the right budget, understanding their audience, and creating resonant content, small businesses can harness the full potential of this platform.

Remember, success on Facebook doesn't happen overnight; it's a journey of continuous learning and optimization.

So, start small, experiment, and adapt your strategies as you gain insights. With a well-thought-out approach, Facebook ads can be a game-changer, helping small businesses reach new heights and expand their reach in today's competitive market.

Key insights
  • When planning your Facebook ad budget, take a comprehensive approach. Define your goals, research your ideal customers, study your competitors, and get inspiration from top performers in your industry.
  • Enhance your content game – the quality of your content directly impacts your ad performance, and you don't have to break the bank to see better results. Understand what your audience likes and continue delivering great content.
  • Keep learning! Marketing is like a wild journey, and you can find tons of valuable free resources online. Watch informative videos, explore Facebook's articles and help center, and keep experimenting.
  • Start with simplicity. You don't need to create complex campaigns or intricate rules from day one. Experiment with boosting successful page posts and highlighting your product's standout features to attract attention.
  • Leverage customer feedback. People trust word of mouth, even in marketing. Showcase real client testimonials to attract more customers.
  • Don't get discouraged if you don't see immediate results. It's okay not to be a pro when you're just starting. Take it one step at a time and focus on long-term goals. Consistent small successes will lead you to the big win.


Do Facebook ads work for small businesses?

Absolutely. The Facebook algorithm operates consistently, irrespective of your business's size. As long as you provide value to platform users, it will effectively drive traffic to your ads.

How much should a small business spend on Facebook?

There isn't a magic number, but several key factors come into play when deciding: your business objectives, the level of competition, ad creation expenses, frequency of ads, and the price of your product.
When you face stiffer competition, cater to a broader audience, or offer higher-priced products, it makes sense to allocate a larger budget.
Keep in mind that you can continually fine-tune and adapt your budget until you discover the perfect balance.

What ads content is the most effective on Facebook?

It depends on the nature of your product. If you're dealing with a tangible item, engaging real-life content that highlights its value tends to perform well.
On the other hand, for service-oriented offerings, educational materials or customer testimonials can work like magic. The key is to keep experimenting with different content types.
The more creatively you test, the clearer it becomes which content resonates best with your business.

3 must haves to run Facebook ads as a small business

1. Facebook Business Manager Account: Creating a Facebook Business Manager account is the first step in running Facebook ads. It allows you to manage your campaigns, track performance, and access various advertising tools.

2. High-Quality Visual Content: Facebook is a highly visual platform, so having eye-catching images or videos is crucial for your campaigns. Invest in creating high-quality, attention-grabbing visuals that represent your brand and message effectively.

3. Clear Marketing Strategy: Before launching your Facebook campaigns, develop a clear marketing strategy. Define your goals, target audience, and budget. Decide what type of ads you want to run (e.g., image ads, video ads, carousel ads) and create a content calendar to plan your campaigns over time.

In addition to these must-haves, it's essential to stay informed about Facebook's advertising policies and best practices, as they can change over time.
Regularly monitor and analyze your ad campaign performance, make adjustments as needed, and be prepared to adapt your strategy based on the results you achieve.

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About the author
Mario Neto
Mario Neto
Americana, Brazil

Mario is a Content Specialist at Revealbot. He's passionate about creating engaging and educative content. When not writing, he’s binging TV shows or learning something completely random. 🤓

Amal Moursi
Amal Moursi
Istanbul, Turkey
Let’s stay in touch

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