What Is Better - Google Ads or Facebook Ads - for Small Business?
Google Ads are better when customers actively search for what you sell (plumber, lawyer, locksmith). Facebook/Instagram Ads are better when you need to create awareness or show visual products (restaurants, retail, services where people don't know they need you yet). Most successful small businesses use both.
Intent vs. discovery
Google Ads capture demand that already exists. Someone types 'emergency plumber Boston' and you appear. Facebook/Instagram Ads create demand. Someone scrolling sees your bakery's Reel and decides they want a croissant tomorrow.
If customers already know they need you, Google is usually better. If they don't, social is usually better. This decides 80% of the answer for most small businesses.
Cost realities
Google Ads cost-per-click ranges from $1 (low-competition local services) to $50+ (legal, insurance). Average small business CPC is $3-$8. Conversion rates run 4-7% for local services.
Facebook/Instagram Ads cost $0.50-$3.00 per click for most small businesses. Conversion rates are lower (1-3%) but reach is higher and creative quality matters more. A bad Facebook ad can spend $50 with zero return; a good one can deliver 10x ROAS.
Key facts
- ▸Average small business spends $9,000-$10,000/month on Google Ads (WordStream, 2024).
- ▸Average Facebook/Instagram Ads CPC for small businesses is $0.97 (Hootsuite, 2024).
- ▸Google Local Service Ads (a separate Google product) only charge per lead, not per click - often the best Google option for service businesses.
- ▸Click-through rate is 2-3x higher on Google search vs. Facebook feed for high-intent keywords.
- ▸Combining both channels typically lifts overall conversion by 25-40% vs. either alone.
Step-by-step
- 01Define whether customers search for you or discover you. This decides where to start.
- 02Start with $10-$20/day on whichever channel matches.
- 03Run for 14 days minimum before judging. Both platforms need time to optimize.
- 04Track cost per actual customer, not per click.
- 05Add the second channel only once the first is profitable.
Common mistakes
- ×Running both channels with $5/day each. Too thin to learn anything.
- ×Sending ads to your homepage instead of a focused landing page or booking link.
- ×Ignoring negative keywords on Google - you'll waste 30%+ of budget without them.
- ×Using boring stock photos on Facebook. Creative quality determines 70% of performance.
Tools and resources
Lowers blended customer acquisition cost - the customers you already have do the marketing.
Pay-per-lead model, often outperforms regular Google Ads for trades.
Required for Facebook/Instagram ads. Free.
Related questions
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