What is the Best Form of Local Advertising? – Small Business Marketing Questions Answered

Wondering what is the best form of local advertising for your business? This guide explores top paid strategies like local search ads, social media ads, and more.

Picture this: Sarah, the proud owner of “The Reading Nook,” a charming local bookstore, was staring at her budget with a heavy heart. She had just written a check for another full-page ad in the local newspaper, a strategy that felt more like a hopeful wish than a smart business move. Week after week, she spent her hard-earned money on traditional ads and flyers, but the trickle of new customers felt like a leaky faucet, not the flood she needed to grow. The “old way” of advertising felt like throwing money into a black hole.

This is a story many small business owners know all too well. You spend money on advertising, but you have no real way of knowing who sees your ad or if it even works. It’s frustrating and, frankly, a terrible way to spend your precious marketing dollars.

But what if there was a “new way”? A way to put your message directly in front of local people who are actively looking for a business just like yours? A way to not just spend money, but to invest it, with clear, measurable results? This new way exists, and it’s all about using targeted, digital advertising to connect with your community and grow your business.

Put Your Business at the Top With Local Search Ads

When someone in your town needs something, what’s the first thing they do? They search on Google. They type in “best pizza near me,” “emergency plumber in [your city],” or “local bookstore open now.” The best form of local advertising often means being the first answer they see. That’s where Local Search Ads, also known as Pay-Per-Click (PPC) ads, come in.

These are the sponsored listings you see at the very top of Google’s search results. Unlike organic results that take time to build, you can be at the top of the page today. You choose the keywords you want to target and set a budget. The best part? You only pay when someone is interested enough to actually click on your ad.

This is a powerful way to capture “high-intent” customers, people who are ready to buy or book a service right now. According to Google, 76% of people who conduct a local search on their smartphone visit a business within 24 hours.1 That’s a powerful statistic that shows the immediate impact these ads can have.

Getting Started with Local Search Ads

  • Define Your Goal: Do you want phone calls, website visits, or in-store traffic? Knowing your goal helps you create a focused campaign.
  • Choose Your Keywords: Think like your customer. Use specific, location-based keywords like “historic fiction bookstore in [Your Town]” rather than just “bookstore.”
  • Set a Smart Budget: Start small to test what works. You can set a daily budget so you never overspend. You can get started with as little as $5 or $10 a day.
  • Look into Local Service Ads (LSAs): If you run a service business (like plumbing, HVAC, or house cleaning), LSAs are a must. They appear even above regular PPC ads and feature a “Google Guaranteed” badge, which builds instant trust with potential customers.

Finding Your Tribe With Advertising on Social Media

What is the best form of local advertising for building a community and staying top-of-mind? For many, the answer is social media advertising. Platforms like Facebook and Instagram are no longer just for sharing photos; they are powerful advertising engines.

The true magic of social media ads is the incredible targeting. You can show your ads to people based on their location, age, interests, and even recent life events. Imagine a local jewelry store being able to run an ad targeted specifically to people in their town whose anniversary is coming up in the next month. That’s the level of detail you can achieve.

“The ability to learn what your customers want is the key to crafting a successful social media strategy. This information can then be used to create highly-targeted ad campaigns that are more likely to convert browsers into buyers.” – Amy Malin, owner of TrueHeart via Business News Daily.

Making Social Media Ads Work for You

  • Target a “Hyperlocal” Audience. Don’t just target your whole city. Use Facebook’s ad tools to draw a 1-mile or 5-mile radius around your business to reach the customers closest to you.
  • Use Eye-Catching Visuals. On social media, your ad’s image or video is the first thing people see. Use high-quality photos or short videos of your products, your team, or your happy customers.
  • Run Retargeting Campaigns. You can install a piece of code on your website (a “pixel”) that allows you to show ads to people who have already visited your site. This is a fantastic way to remind potential customers about your business. A recent study showed that social media advertising spending is projected to reach over $229 billion in 2024.2 This massive investment highlights how effective businesses find these platforms to be.

Use Geofencing and Other Digital Ads To Go Hyper-Local

Ready to get really precise? Geofencing advertising allows you to create a virtual “fence” around a specific geographic location. When a potential customer with a smartphone enters that area, they can be shown your ad on apps or websites they visit.

Think about the possibilities:

  • A restaurant could geofence a nearby office building during lunchtime.
  • A competitor’s location could be geofenced to attract their customers with a better offer.
  • A booth at a local farmer’s market could be geofenced to drive more traffic to your table.

This strategy is all about reaching the right person, in the right place, at the right time. Other digital options like advertising on Nextdoor or Yelp can also be highly effective, as they target users who are specifically looking for recommendations and businesses in their immediate neighborhood.

Community-Based Advertising: Sponsorships

While digital is powerful, don’t forget about real-world advertising. Sponsoring a local little league team, a community 5K run, or the local theater program is a form of advertising that builds immense goodwill. It puts your brand name in front of a captive local audience and shows that you are invested in the community’s well-being. This creates a positive brand association that digital ads alone sometimes can’t achieve.

The Bridge to Smarter Spending

The “old way” of advertising was a guessing game. You spent money and hoped for the best. The “new way,” powered by digital advertising, is about making smart, data-driven decisions. Whether it’s the immediate lead generation of local search ads or the community-building power of social media ads, you now have the tools to reach your ideal customers with incredible precision.

You no longer have to wonder if your advertising is working. You can track clicks, calls, and customers. You can see exactly what your return on investment is. It’s a fundamental shift from spending money to investing it wisely in your business’s growth. Understanding and managing these campaigns can feel overwhelming, but you don’t have to do it alone.

So, What is the Best Form of Local Advertising?

After exploring all the options, the truth is that there isn’t one single magic bullet. The best form of local advertising isn’t a specific platform but a smart strategy, a custom-fit mix of modern, measurable tools that connects you with your ideal customers right where they are.

The “best” choice really depends on your specific business goals:

  • For capturing high-intent customers at the exact moment they need you, nothing beats the power of Local Search Ads on Google. You’re providing an immediate solution to someone who is actively looking.
  • For building a loyal community, showcasing your brand’s personality, and creating new demand, Social Media Ads are your powerhouse. They are perfect for visual storytelling and targeting customers based on their interests.
  • For driving real-time foot traffic from specific locations, Geofencing Ads offer a high-tech way to reach people when they are physically near your business or even your competitors.

Ultimately, the best form of local advertising is leaving the old, wasteful “guessing game” of traditional ads behind. It’s about embracing a new way where every dollar you spend is an investment you can track, measure, and understand. It’s about knowing exactly what works and why.

But figuring out the right advertising mix, managing the budgets, and analyzing the data is a full-time job. You have a business to run, and your time is your most valuable asset. You don’t have to navigate this new world of advertising all on your own.

The team at Diffyweb specializes in creating custom advertising strategies that get real, measurable results for local businesses like yours. If you’re ready to find your best form of local advertising, let’s talk.

For more insights on building a strong foundation for your marketing, explore our article on Is It Worth Having a Website for a Small Business?.

FAQs

What is the best form of local advertising to start with?

For most businesses, Local Search Ads (Google Ads) are the best starting point because you capture customers who are already actively searching for your products or services.

How much should I budget for local advertising?

A good starting point is 5-10% of your revenue. Start with a small, manageable daily budget (e.g., $10-$20/day) on a platform like Google or Facebook to test what works, then scale up as you see a positive return.

Are Facebook Ads or Google Ads better for a local business?

It depends on your goals. Google Ads are great for capturing immediate demand (people searching for a solution now). Facebook Ads are better for generating awareness and creating demand by targeting people based on their interests and demographics. Many businesses find success using both.

What is a “good” return on ad spend (ROAS)?

A common benchmark for a good ROAS is 4:1, meaning you make $4 in revenue for every $1 you spend on advertising. However, this can vary widely by industry.

Is sponsoring a local event really advertising?

Yes. It’s a form of brand advertising. While it may not lead to as many direct, trackable sales as a digital ad, it builds brand awareness, positive sentiment, and community trust, which are invaluable for a local business.

What is CPC and CPM?

CPC stands for “Cost Per Click,” meaning you pay each time someone clicks your ad. CPM stands for “Cost Per Mille” or “Cost Per Thousand Impressions,” meaning you pay for every 1,000 times your ad is shown, regardless of clicks.

Can I run local ads without a website?

While you can run some ad types without a website (like Google Ads that direct to a phone call or your Google Business Profile), having a professional website is highly recommended. It acts as your digital storefront and a central hub for all your marketing efforts.

How long does it take for paid ads to start working?

Paid ads can start generating clicks and traffic almost immediately after they are approved and launched, often within 24 hours. Optimizing them for the best results, however, may take a few weeks of testing and tweaking.

How can I target customers in a specific neighborhood?

Platforms like Google Ads and Facebook Ads have powerful location targeting tools. You can target by zip code, city, or even draw a radius of just a few miles around your business address to be hyper-specific.

Should I hire an agency to manage my local advertising?

If you have the time and willingness to learn, you can certainly manage your own ads. However, an agency can often get you better results faster, optimize your budget more effectively, and free up your time to focus on running your business.

  1. Think With Google ↩︎
  2. Statista ↩︎