How Facebook Ads Works on Small Business

Updated: Mar 12

With the flourishing of Social Media platforms, there is an increasing number of new social media platforms which are occupying the market. This doesn’t mean people use Facebook less; instead, they spend more time on multiple Social Media platforms. This demonstrates the fact that Social Media advertising or Facebook Ads is still an initial marketing strategy for all small businesses.

facebook ads for small business

Statistics of Facebook Advertising on Small Business

74% of Facebook users use the platform daily.

This is quite a good sign for small business owners because they know where your potential customers are and all they need to do is to approach them.

90 million small businesses are using Facebook.

This number is counted until 2019 by Facebook Reports. Therefore, this might be a flaw if you don’t have your business page presented on Facebook.

Over 6 million businesses are using Facebook Ads to reach their potential customers.

Will you let your rivals overpower your business? This proves the fact that many businesses are realising that Facebook Ads is an important part of their marketing strategy, helping them remain competitive in the intense market.

The average prove for Facebook Ads decreased by 6% in 2019.

This is good news for small businesses with tight budgets on marketing.

Facebook Ads impression increased by 33%.

Facebook is becoming more precise in targeting audiences and matching them with the right content; meaning that CTR is increasing. Every penny you spend on Facebook Ads will be worthy.

Facebook Ads revenue keeps increasing.

Many small businesses are relying on Facebook Ads to reach their customers, while advertising on Facebook is becoming more effective. This number is expected to keep increasing in the future.

Why Small Businesses are Beneficial from Facebook Ads

Their potential customers are on Facebook.

Facebook has more than 2.45 billion people log in to the platform every month, while 74% of them actively use Facebook daily. Facebook has the largest number of users, compared to other social media platforms, which is used by all ages. Although seniors are the smallest user group, Facebook is the most popular social network among seniors.

facebook ads for small business

Facebook Ads is becoming more effective than ever.

The new algorithms from Facebook allow users to find content more precisely. Facebook matches users with the right content that they are truly interested in. That means when users see Facebook Ads, there is a high chance that these users turn into customers. While the conversion rate increases, the cost for Facebook Ads decreases. Facebook Ads is one of the most effective ways to advertise, with high ROI.

Facebook Ads is best suited for tight budgets.

Compared to other means of advertising, Facebook Ads is one of the cheapest. A Facebook Ads campaign can be started with a small amount of money but has a huge impact on your business. This will help business owners, who are considering the marketing budgets, to be more confident to pick their marketing strategy.

How to Use Facebook Ads for Small Business

Before running a Facebook Ads campaign, you need to answer those questions to make sure your campaign will success

  • What are your marketing goals?

  • Who is your target audience?

  • What type of Ads format for your campaign (video, single image, carousel, etc)?

  • Where do you want your Ads to be seen on Facebook?

  • What is your budget?

  • Do you have resources to create your creative content?

  • How will you track