Meta Ads for Small Businesses - Are They Worth It?

Meta ads are a form of online advertising that allows your business to promote your products and services across Meta’s platforms, primarily Facebook and Instagram. With Meta having a combined 3.98 billion monthly users on their platforms (Facebook, Instagram, Whatsapp and Messenger) you’re not going to be struggling to reach an audience, you just have to worry about reaching the right one. 

In this blog, you’ll come away with newfound knowledge of the Meta world and see what it can do for your business. We’ll cover What Meta ads are, the benefits of meta ads for small businesses, how meta ads compare to other platforms, their capabilities and how you could go about setting them up. 

What are Meta Ads? 

Meta Ads, previously known as Facebook ads, are designed to help businesses connect with their target audience through various ad formats. These formats include images, videos, carousels and more. 

Meta’s advertising system operates on a bidding model, where costs can vary based on factors such as audience targeting, ad format and campaign objectives, also the competitiveness of the market. 

Meta ads have a variety of features such as maps, videos and Meta pixel technology, which can enhance the user experience and engagement, ultimately driving better results for businesses and marketers. 

Some key features of Meta ads which make it a great advertising tool include:

Audience Targeting: Business can segment their customers demographically, and geographically as well as use customer behaviour to find their ideal customer. This type of precision targeting is crucial for small businesses that have limited marketing budgets but want to maximise their return on investment. 

Ad Formats: As we mentioned before, Meta ads have several advertising formats you can use to reach your target audience. This kind of flexible advertising is what makes it so powerful, you can create multiple different types of ads that resonate with your audience. 

Performance Tracking: Advertisers (You or the agency doing it for you) can monitor the effectiveness of your campaigns through detailed analytics provided by Meta, it can help show you where your weak points are in your campaign, and how you can improve them. 

Why Meta Ads Matter to Small Businesses

Access to a large Audience: With billions of monthly users across Facebook and Instagram, on a budget you can reach a huge amount of people and get your name out there for reasonable prices!

Cost-Effective Marketing: Whatever your budget is, Meta Ads has a plan for you. It can be tailored for all budgets high to low. The ability to set specific spending limits and target audiences makes sure no dollar goes to waste!

Remarketing Opportunities: Meta ads allow you to be able to re-engage users who had previously interacted with your brand. This remarketing capability(link to blog) can help convert users who got distracted in the process of becoming a customer. 

Advantages of Meta Ads for Small Businesses

Affordability 

One of the most significant benefits Meta ads have is their cost-effectiveness. Small businesses often operate with limited marketing budgets, and Meta ads provide an accessible option to reach a large audience without overspending. 

For example, if you’re on the fence about using Meta ads you can set a budget as low as £3 per day. Granted this won’t get you the best results but provided your ad is optimised to meet your business goals it will make a little difference. 

Meta ads have a much lower Cost-Per-Click(CPC) as compared to other platforms with an average of around £0.97. 

Scalability 

Meta ads are highly scalable, allowing you to change your campaign as it grows. 

Campaign Objectives: Advertisers can choose from various campaign objectives, such as brand awareness, lead generation or sales conversions. This flexibility allows the campaign to change as your business evolves. 

Budget Adjustments: Small businesses can easily scale their ad spending up or down based on performance and seasonal demands. For example, if your business experiences a surge in demand during the holiday season, it can increase its ad budget to capitalise on this opportunity. 

Direct Engagement with Customers

Meta ads facilitate direct interaction with potential customers, enhancing engagement and building relationships.

• Interactive Ad Formats: Businesses can utilise various ad formats, including videos, carousels, and stories, to create engaging content that captures users' attention. This interactivity helps small businesses stand out in a crowded marketplace.
• Real-Time Feedback: The ability to monitor ad performance in real-time allows your small business to adjust your strategies quickly. By analysing metrics such as click-through rates and conversions, you can make informed decisions about you advertising efforts, depending on how they’re going. 

Local Targeting Benefits

For small businesses, local targeting is particularly advantageous.

• Community Engagement: By targeting specific geographic areas, small businesses can foster a sense of community and encourage local patronage. For instance, a local retailer can promote special offers to nearby residents, driving foot traffic to their store.
• Cost-Effective Promotions: Local ads often have lower competition and costs, allowing small businesses to effectively reach their community without competing against larger brands with bigger budgets.

How Meta Ads Compare to Other Platforms 

Visual Engagement and Customer Interaction

Meta ads excel in visual engagement, making them particularly effective for businesses with visually appealing products or services.

• Ad Formats: Meta offers a variety of ad formats, including image, video, and carousel ads, which can capture user attention more effectively than traditional text-based ads. This is especially beneficial for small businesses in industries such as fashion, food, and home decor, where visual storytelling can significantly enhance brand appeal.
• Social Interaction: Unlike Google Ads, which primarily targets users actively searching for specific products or services, Meta ads engage users in a more passive manner. This means that while users are scrolling through their feeds, they encounter ads that may pique their interest, even if they were not initially looking to make a purchase. This "push" marketing approach can create demand and foster brand awareness, which is crucial for small businesses aiming to build a customer base.

Platform Dominance on Mobile

Meta platforms, particularly Facebook and Instagram, dominate mobile advertising, with over 90% of their advertising revenue coming from mobile devices.

• Mobile Optimization: Given that a significant portion of users access these platforms via smartphones, Meta ads are designed to be mobile-friendly. This is a vital consideration for small businesses targeting consumers who are increasingly shopping on their mobile devices.

Cost-Efficiency

When comparing costs, Meta ads often provide a more budget-friendly option for small businesses.

• Lower Cost-Per-Click (CPC): The average CPC for Meta ads is generally lower than that of Google Ads. For instance, while Google Ads can average around £1.00 per click, Meta ads can be as low as £0.26. This cost efficiency allows small businesses to stretch their advertising budgets further, reaching more potential customers without overspending.
• Budget Control: Meta ads allow for flexible budgeting, enabling businesses to set daily or lifetime budgets. This control is particularly appealing for small business owners who need to manage their expenditures closely.

Higher Engagement Rates in Certain Industries

Meta ads often yield higher engagement rates, especially in industries that thrive on visual content.

• Brand Awareness: Businesses focused on brand recognition, such as those in the beauty, lifestyle, or food sectors, can benefit from the expansive reach of Meta ads. For example, a local bakery could use visually appealing images of its pastries to engage users, driving both online and foot traffic to the store.
• Community Building: Meta ads facilitate direct interaction with potential customers through comments and shares, fostering a sense of community. This is particularly advantageous for small businesses looking to build customer relationships and encourage repeat business.

Hopefully, this blog taught you something useful, another form of advertising for your business that you can use. If you’re curious to see if Meta Ads are the way forward for your business, book a call with us on our website. No sales jargon, just a friendly chat with our founder Matt.