Are Facebook ads worth it in 2025? Many small business owners still ask this question. The short answer is yes, if you use the right strategy.
Facebook gives you access to over 3 billion monthly users and some of the most advanced targeting tools available. 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, you'll learn how to make Facebook ads work for your business with 8 proven strategies and automation tips to boost ROI and cut wasted ad spend.
Key insights
- Even with a small budget, Facebook ads can deliver meaningful results if your goals, targeting, and creatives are aligned.
- Smart use of automation and lookalike audiences helps reduce wasted spend and improve ROI.
- Tools like Meta Advantage+ and Bïrch simplify campaign setup and make it easier for small businesses to scale effectively.
Do Facebook ads work for small businesses?
Facebook is still one of the most cost-effective platforms for small businesses to reach the right audience. Its targeting capabilities go beyond demographics, letting you reach people based on interests, behaviors, and location.
Local businesses can use geo-targeted ads to drive foot traffic. Online brands can tap into lookalike audiences and retargeting to scale efficiently.
Unlike static banners, Facebook ads encourage interaction. Every like, comment, and share expands your reach without increasing your spend.
Even with a small budget, strong targeting and relevant content can generate real results—whether that means brand awareness, leads, or sales.
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 advertising for small businesses can be a strategic decision influenced by several factors, such as:
- Business Goals: The budget should align with the business objectives. If the goal is to increase 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 advertising costs. Highly competitive industries may require a higher marketing budget to stay competitive in the ad auctions.
- Ad 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 key performance indicators of previous campaigns is a smart practice to maximize results.
But how effective is Facebook advertising when you’re working with a limited budget? The truth is, even with a minimal ad spend of $1, small businesses can start building brand awareness and gathering data to inform smarter campaigns. 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 Bïrch 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.
8 Facebook advertising tips for small businesses
Running successful Facebook ad campaigns starts with understanding your goals, audience, and ad structure. If you’ve just launched a new brand or are looking to optimize, learning how to run Facebook ads for small businesses will help you maximize impact even on a limited budget.
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 and level up your marketing efforts.
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, but they also pave the way for a higher return on investment (ROI).
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:
- Access Facebook Business Manager.
- Create a Pixel.
- Install the Pixel code on your website.
- Verify the Pixel's functionality using Facebook's Pixel Helper browser extension.
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 increase website traffic, so visitors 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.
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 try interest based targeting for people who might be interested in your products or services because they resemble your existing satisfied customers.
This strategy helps improve the effectiveness of your Facebook campaigns and can lead to higher conversion rates and ROI.
Bïrch 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%.
An advanced capability of Bïrch's lookalike audience feature is the inclusion of Ad Set-Based Conversion Lookalikes. It 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 Bïrch. It uses your Ad Campaign and Ad Sets as a starting point and dynamically updates your lookalike audience as you accumulate new conversions.
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.
Also, be mindful of ad fatigue — when the audience sees the same ad too often, it can lead to lower engagement and wasted budget. Remember, it's not just about how much Facebook ads cost, but how wisely you allocate your resources to achieve your advertising objectives.
Tip #6 – Start with boosting a good-performing Facebook post
Leveraging a successful post by turning it into a promoted post can be a smart strategy for small businesses diving into Facebook advertising. But how to boost Facebook post content effectively? Boosting a post that has already shown strong engagement is one of the easiest ways to test the effectiveness of Facebook ads.
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 Facebook 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 what to consider:
- Text. 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.
- Headline. 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 Facebook posts.This might involve straightforward prompts like "follow this link now," "share your thoughts in the comments," or "tap that follow button to stay on top of 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.
Tip #8 – Leverage Meta’s Advantage+
If you want to simplify your ad setup without sacrificing performance, Meta’s Advantage+ is worth exploring. It automates key elements like targeting, placements, and budget optimization, all powered by Meta’s AI.
For small businesses, this means less manual work and faster setup. It is especially useful if you already have customer data (for example, past purchases, or site visitors), but you can definitely test it even without historical data.
While this feature is still limited, it seems to be evolving toward a hands-off setup that delivers strong performance. So, if you’re launching a campaign, or maybe scaling up, Meta’s Advantage+ could already help you optimize your campaigns and see improved results.
5 small business Facebook ads to inspire you
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.
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.
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.
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.
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.
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.
Wrapping up
Facebook advertising offers 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.
Want to stop guessing and start seeing results? With Bïrch, you can automate key decisions like pausing underperforming ads or scaling those that meet your ROI targets. Try Bïrch for free and bring more structure to your Facebook ad strategy.
FAQs
Does Facebook advertising 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, Facebook small business advertising will effectively drive traffic to your ads.
Is it worth advertising on Facebook in 2025?
Yes, it is, if done right. With over 3 billion monthly active users, the benefits of Facebook advertising for small businesses are hard to ignore. It offers massive reach and advanced targeting capabilities that can connect you directly with your ideal customers. However, success depends on a smart strategy, clear goals, and avoiding mistakes like poor targeting or weak creatives.
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 ad 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.
How to run Facebook ads for small businesses?
To run Facebook ads for small businesses, start by creating a Facebook Business Manager account and defining your campaign objective. Then, build your target audience using demographic, interest, or behavioral data.
Create eye-catching visuals, write clear copy, and set a budget that fits your goals. Start simple, such as boosting an existing post that performed well, and track performance using Facebook Ads Manager.
Over time, experiment with different ad formats and audience segments to see what works best for your brand. Consistent testing and optimization are key to success in Facebook ads for businesses.
Is Facebook advertising better than Google ads?
The key difference between the two lies in user intent. Google Ads targets people who are constantly looking for a product or service, while Facebook Ads are best at discovery-based marketing by reaching users based on their behaviour. For small businesses looking to increase brand awareness, Facebook ads are more cost-effective.
