Facebook Ads vs Google Ads: which is better for local businesses?

Google Ads reaches people who are actively searching for your service right now. Facebook Ads reaches people who match your ideal customer profile but aren’t necessarily looking for you at this moment. Google captures existing demand. Facebook creates new demand. Most local businesses get the best results by running both.

How Google Ads works for local businesses.

When someone searches “plumber near me” on Google, they have an immediate need. They’re not browsing. They’re ready to call. Google Ads puts your business at the top of those search results so you’re the first option they see.

The advantage: extremely high intent. The disadvantage: you only reach people who are already searching. If nobody in your area is searching for your service this week, Google Ads delivers nothing that week.

The average cost per click across industries is $5.42, with costs ranging from $2 for restaurants to $50+ for legal services. The average cost per lead is $66.69. These costs have been rising steadily as competition increases.

How Facebook Ads work for local businesses.

Facebook Ads (which include Instagram) don’t wait for someone to search. They put your business in front of people who match your target audience based on their location, demographics, interests, and behaviors. Someone who lives in your area, owns a home, and has shown interest in home renovation might see your ad for kitchen remodeling, even though they weren’t actively searching for it.

The advantage: you can reach people before they start searching, which means you’re influencing their decision early. Facebook Ads are also excellent for building awareness in your local area so people recognize your business when they do need your service.

The disadvantage: lower intent. These people weren’t looking for you. Your ad has to interrupt their scrolling and earn their attention. That means creative (images and video) matters much more on Facebook than on Google, where text ads dominate.

When to use which.

Use Google Ads when you need leads now. If your calendar is empty and you need customers this month, Google Ads targets people with immediate intent. For service businesses with urgent needs (plumbers, HVAC, auto repair, emergency dentists), Google is usually the primary channel because the search intent is so strong.

Use Facebook Ads when you want to build awareness, promote an offer, or reach people who don’t know they need you yet. Restaurants, fitness studios, med spas, and lifestyle businesses benefit from Facebook’s ability to put visual, attention-grabbing ads in front of the right people. Facebook is also effective for retargeting: showing ads to people who already visited your website but didn’t convert.

Use both when you want the best results. Google Ads captures the bottom of the funnel (people ready to buy). Facebook Ads feeds the top of the funnel (people who might buy later) and retargets the middle (people who visited but didn’t act). The two platforms working together produce more leads at a lower cost per acquisition than either one alone.

The cost difference.

Facebook Ads tend to have a lower cost per click ($1-3 on average for local businesses) but a lower conversion rate because the intent is lower. Google Ads have a higher cost per click ($4-8+) but a higher conversion rate because the intent is immediate.

The actual cost per customer depends on your industry, your creative, and your landing page. Don’t choose based on cost per click. Choose based on cost per customer.

If you want help figuring out the right mix of paid advertising across Facebook and Google for your business, book a free growth call. We’ll look at your industry, your budget, and your goals, and recommend a strategy that fits.