Google and Facebook Ads for Local Service Businesses
Paid advertising can be a game-changer for local service businesses. When done right, it drives high-quality leads, boosts website traffic, and brings in repeat and referral clients. This guide is split into two parts: Google Ads and Facebook Ads. Each section provides insider strategies to help you maximize your budget and get real results.
Google Ads: What Every Local Service Business Should Know
Google Ads is one of the most powerful tools for local businesses. It allows you to reach clients actively searching for the services you provide, putting your business in front of people at the exact moment they need you. Here’s what you need to know to get it right:
Track the Right Metrics
Success isn’t just about clicks, it’s about leads and conversions.
Be sure you’re tracking:
Conversion rate: How many ad clicks turn into booked appointments or inquiries.
Cost per conversion: How much you spend to get each lead.
Impression share: Are your ads showing up as often as they could?
Set up Google Tag Manager and conversion tracking to measure website form submissions, calls from mobile clicks, and booking completions. This ensures you’re not wasting money on clicks that don’t generate clients. It may be helpful to set up a unique landing page and success page to track results easily.
Targeting & Keywords
For local service businesses, location targeting is critical. Use geo-targeting to show ads only in your service area. Focus on:
High-intent keywords: “Hair salon near me,” “emergency plumber [city]”
Service + location keywords: Combine what you do with where you do it
Avoid overly broad keywords that attract clicks from outside your area
Use negative keywords to filter out irrelevant searches, e.g., “free,” “DIY,” or cities outside your service area.
Budget Strategy
Start small, monitor, and scale:
Begin with a daily budget that feels comfortable but enough to gather data (often $10–$30/day for local service businesses). Remember you’re paying for clicks, so if cost-per-click is $1, that’s 10 clicks per day.
Allocate more to campaigns and keywords that generate the most conversions.
Revisit budgets monthly, increasing investment only where results justify it.
Testing Ads
Google Ads is a platform built for continuous testing. Test:
Ad copy variations: Highlight different benefits, offers, or call-to-actions.
Extensions: Add location, call buttons, or site links to improve engagement.
Landing pages: Test where traffic goes—different pages may convert better.
Use A/B testing and only pause underperforming ads after at least 2–3 weeks of consistent data.
Maintenance & Optimization
Google Ads requires ongoing attention:
Check search terms weekly and add negative keywords
Review conversion rates and adjust bids on high-performing keywords
Rotate ad copy regularly to prevent “ad fatigue”
Use automated bid strategies like Maximize Conversions once you have enough data
Local service businesses often see success by keeping campaigns simple, targeted, and highly relevant rather than chasing every trend or keyword.
Local Service Ads
If your business type is eligible, you may be able to run Local Service Ads through Google. This is a separate account from your Google Ads account. Businesses in niches like home services, law, real estate, accounting, health, child care, pet care, wellness, beauty, learning, and automotive may qualify.
Local services ads are pay-per-lead instead of pay-per-click. You will be required to submit some verification information prior to running ads. Local service ads show up above the PPC ads and the search results, giving local businesses better exposure. You will be competing against other businesses for placement, so your response to inquiries, ad quality, and budget all factor into how well you’ll place. The good news is, you only pay for leads, not just clicks.
Facebook Ads - Small Budget? Big Impact
Facebook (Meta) Ads allow you to reach clients based on interests, demographics, behaviors, and even local geography. For local service businesses, this is ideal for brand awareness, promotions, and nurturing leads. One bonus tip: Facebook Ads can also run automatically on Instagram, giving you extra reach and engagement without creating a separate campaign. Instagram is especially effective for visual content and younger audiences, so this dual placement can make your budget go further.
Audience Targeting
Here’s an overview of audience types on Facebook.
Custom Audiences: Upload your client list or use website traffic for retargeting
Lookalike Audiences: Find people similar to your best clients
Geo-targeting: Limit your ads to your city, neighborhood, or service radius
Combine interests and demographics to refine your audience for relevance. Start hyper-local. A small radius ensures your budget isn’t wasted on people too far away to visit.
Testing Strategies
Testing is essential to find what resonates. Here are some things you should test:
Ad creatives: Test images vs. videos, different headlines, and call-to-actions
Copy variations: Highlight different benefits or promotions
Ad placements: Test feed, Stories, or Marketplace placements
Use small budgets for testing (even $5–$10/day per variation) until you identify top performers. Run tests for at least 5–7 days to gather enough data before making decisions.
Budgeting & Scaling
Start small to test: $5–$15/day per campaign works well for local businesses
Scale budgets slowly, increasing by 20–30% once campaigns consistently convert
Allocate more budget to retargeting campaigns because they often produce the highest ROI
Content that Converts
Include local references and imagery to build connection
Use real photos of your team, your space, or clients in action (with permission)
Include clear calls-to-action like “Book Now,” “Call Today,” or “Learn More”
Facebook’s algorithm favors engagement. Ads that prompt comments, shares, or clicks will reach more people organically, even with a small budget.
Paid Ads Success Formula for Local Service Businesses
Target precisely: Use geo-targeting and audience filters to reach the right people
Test everything: Copy, images, audiences, and landing pages
Track conversions: Make sure every lead, call, or booking is tracked
Start small, scale smart: Begin with a manageable budget and increase only on proven winners
Maintain regularly: Weekly reviews of keywords, ad performance, and audience engagement keep your campaigns efficient
Paid ads don’t have to be complicated. With focused targeting, ongoing testing, and consistent tracking, local service businesses can maximize ROI, attract new clients, and grow steadily, even on a modest budget.
Misty Canfield
Founder of Charisma Graphics
Hi, I'm Misty
I’ve been designing for businesses for the past 20+ years. At Charisma Graphics, we specialize in conversion and charisma optimized WordPress websites, email marketing, and helping you get more traffic, leads, and clients. I love helping people turn their ideas into reality. It’s truly amazing how good design & strategy can bring a dream to life.
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