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Running Facebook campaigns on a budget: A guide for small local businesses

When you’re working with a tight marketing budget—say, $100 to $300 per month—it’s easy to feel like Facebook ads are out of reach. But the truth is, even a modest spend can make an impact if you approach it with the right strategy.

This article is for entrepreneurs running local service businesses, like restaurants, cafés, salons, or fitness studios, who want to make the most of a small Facebook ad budget. Here’s how to get started, what to focus on, and how to know if your dollars are paying off.

Step 1: Set one clear goal

Don’t try to do everything with one campaign. Decide if your primary goal is to:

  • Let people in your area know your business exists (awareness)
  • Promote a special offer or event (conversion)
  • Build engagement and community

Example: A neighborhood café might focus on promoting a weekly lunch special to boost weekday visits.

Step 2: Choose one or two content strategies

With a small budget, you won’t run ten types of ads. That’s okay. Choose one or two approaches based on your goal:

1. Awareness:

  • Show off your space, food, or service.
  • Use short videos or high-quality images.
  • Use the “Reach” or “Brand Awareness” campaign objective.

2. Promotion:

  • Push a special offer (e.g., “Free drink with any lunch order this week”).
  • Use the “Traffic” or “Engagement” objective.

3. Community-building:

  • Boost your most-liked organic post.
  • Share team stories or customer testimonials.

Keep your message simple and your visual strong. A well-shot photo of your signature dish or smiling staff goes a long way.

Step 3: Allocate your budget wisely

Here’s how a $200 monthly Facebook budget might look:

  • $80: Promote one local awareness ad all month (e.g., $2–3/day).
  • $80: Boost two limited-time offers throughout the month (e.g., $5/day for 8 days total).
  • $40: Boost a community post with high organic engagement.

The key is to spend in short bursts during key times—like right before a weekend or during slow hours—and monitor results.

Step 4: Test small and learn fast

You don’t need big A/B testing budgets. Instead:

  • Try two different photos in the same ad and see which gets more engagement.
  • Test two audiences (e.g., ages 25–40 vs. 41–60 in your area).

Spend just $20–30 on small tests early in the month, then shift the rest of your budget to the better-performing version.

Step 5: Track simple metrics

You don’t need fancy dashboards. Focus on:

  • Reach: Are enough people seeing the ad?
  • CTR (Click-Through Rate): Are people engaging? (Aim for 1% or higher.)
  • CPC (Cost per Click): Under $1 is great for most local ads.
  • Conversions: Count how many people used the offer or visited your store.

Ask customers how they heard about you or track promo code redemptions. It adds up.

Final tip: Consistency beats big spend

One-off ad blasts don’t build brand presence. Instead, spend small amounts every month, learn what works, and build from there. Even $100–$300/month can deliver results with the right focus.

Start with one great offer or one strong message. Focus on your local audience. Test and adapt. Over time, you’ll build up a system that consistently brings people through the door—without breaking the bank.

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