Paid Advertising Guide for Small Businesses

Should You Run Paid Ads?

Paid advertising can be one of the fastest ways to get in front of potential customers. But it can also be one of the easiest ways to waste money if you don't know what you're doing.

Paid ads make sense when you:

• Have a solid website that converts visitors
• Know your target customer
• Have budget to test and optimize
• Need faster results than SEO provides

Don't run ads if your website isn't ready. Driving traffic to a bad website just wastes money faster. Make sure you have quality content and clear calls-to-action first.

Google Ads vs. Facebook Ads

Google Ads (Search)

What it is: Ads that appear when people search for specific terms.

Best for: Capturing people actively searching for your services. High intent—they already want what you offer.

Example: Someone searches "emergency plumber Knoxville" and sees your ad at the top.

Google Local Services Ads

What it is: The "Google Guaranteed" listings at the very top of local searches.

Best for: Service businesses (plumbers, HVAC, electricians, etc.). You only pay when someone contacts you.

Facebook/Instagram Ads

What it is: Ads shown to people based on demographics, interests, and behaviors. Managed through Meta Business Suite (the same tool used for organic social media).

Best for: Building awareness, reaching specific audiences, retargeting website visitors.

Example: Showing your restaurant ad to people in Farragut who are interested in Italian food, or targeting homeowners in Blount County for your home services business.

Which Platform First?

For most local businesses, start with Google Ads or Local Services Ads. These capture people already searching for what you offer—higher intent leads to better conversion rates.

Add Facebook ads to build awareness and retarget website visitors.

Google Ads Basics

How It Works

• You bid on keywords (search terms)
• When someone searches that term, you compete in an auction
• Winner is based on bid amount AND ad quality
• You pay when someone clicks (pay-per-click)

Keyword Strategy

• Target specific, local keywords ("Knoxville AC repair" vs. "AC repair")
• Include location modifiers—"Knoxville," "Farragut," "West Knoxville," etc.
• Use negative keywords to avoid irrelevant searches
• Start with your most profitable services

This follows the same principles as SEO keyword targeting, but you're paying for position instead of earning it organically.

Ad Copy Tips

• Include the keyword in your headline
• Highlight what makes you different
• Include a clear call-to-action
• Use ad extensions (phone, location, sitelinks)

Landing Pages

Don't send ad traffic to your homepage. Send it to a specific page that:

• Matches what the ad promised
• Has a clear call-to-action
• Makes it easy to contact you
• Loads fast on mobile

Facebook Ads Basics

How It Works

• You define your audience (location, demographics, interests)
• You create ads (images/video + copy)
• Facebook shows your ads to that audience
• You pay based on impressions or clicks

Audience Targeting

• Location: Target people in your service area
• Demographics: Age, gender, etc.
• Interests: Hobbies, activities, pages they like
• Custom audiences: Your email list, website visitors
• Lookalike audiences: People similar to your customers

Ad Creative Tips

• Use eye-catching images or video
• Keep text concise
• Lead with a benefit or pain point
• Include a clear call-to-action
• Test multiple versions

Budget Recommendations

For local businesses starting with paid ads:

• Minimum: $500-1,000/month (to gather meaningful data)
• Testing phase: Plan to spend 2-4 weeks learning what works
• Scale gradually: Increase budget as you see results

Don't spread a small budget across too many campaigns. Focus on one thing and do it well.

Tracking & Measurement

If you don't track results, you're flying blind. Set up:

• Conversion tracking: Track form submissions, phone calls, purchases
• Google Analytics: Understand website behavior
• Call tracking: Know which ads generate phone calls

Key metrics to watch:

• Cost per click (CPC): What you pay per click
• Conversion rate: What percentage of clicks become leads
• Cost per lead/acquisition: What you pay per new customer
• Return on ad spend (ROAS): Revenue generated vs. ad spend

Common Mistakes to Avoid

• No conversion tracking: You can't optimize what you don't measure
• Targeting too broad: Narrow targeting converts better
• Sending to homepage: Use dedicated landing pages
• Set and forget: Ads need ongoing optimization
• Giving up too soon: Allow time to gather data and optimize
• Only one ad version: Always test multiple variations

When to Hire Help

Consider hiring a professional if:

• You don't have time to learn and manage ads
• You've tried and wasted money
• Your campaigns are profitable but you want to scale
• You're spending over $2,000/month

Getting Started

1. Define your goal (leads, sales, awareness)
2. Choose one platform to start
3. Set up conversion tracking
4. Create a specific landing page
5. Start with a focused campaign
6. Monitor results daily at first
7. Optimize based on data

Related Resources

Continue learning with these related guides:

• SEO Basics — The organic alternative to paid visibility
• Social Media Guide — Organic social to complement paid social
• Google Business Profile Guide — Free local visibility that complements paid

Need Help?

Paid advertising can be complex, and mistakes are expensive. Our paid advertising services help Knoxville businesses run profitable campaigns without the learning curve. Let's talk about your advertising goals.