Google Ads vs Facebook Ads: Which is Better for Local Businesses?

A Frederick restaurant owner asked us last month: "I have $1,500 a month for ads. Should I put it on Google or Facebook?" It's the most common question we get from local business owners, and the honest answer is that it depends on something most agencies won't ask you about: what your customers do before they buy.

Google Ads and Facebook Ads solve different problems. One captures demand. The other creates it. Picking the wrong one doesn't just waste money, it makes you think paid advertising doesn't work for your business when the real issue was channel selection.

Here's how to make the right call.

The Core Difference: Capture vs. Create

Google Ads puts you in front of people who are already searching for what you sell. Someone types "emergency plumber Frederick MD" into Google, your ad appears, they click, they call. The intent is already there. You're capturing it.

Facebook Ads puts you in front of people based on who they are, not what they're searching for. A homeowner in Frederick who follows home improvement pages sees your ad for kitchen remodeling while scrolling through photos of their friend's vacation. They weren't looking for a contractor. Your ad planted the idea.

This distinction matters more than any feature comparison, bid strategy, or targeting trick. If your customers search for your service when they need it, Google Ads is your starting point. If they don't know your service exists or need to be reminded of it, Facebook is where to begin.

When Google Ads Wins

Google Ads performs best when three conditions are true:

1. People search for your service by name. Plumbers, dentists, accountants, roofers, car repair shops. When the furnace breaks at 11 PM, nobody scrolls Facebook looking for HVAC help. They search Google. If your business solves an immediate, recognized problem, Google Ads is where the highest-intent customers live.

2. You want leads now, not later. A well-built Google Ads campaign can generate calls within the first week. We've launched campaigns for Frederick-area service businesses that produced qualified leads on day one. Facebook typically takes longer to optimize because you're building awareness with a cold audience.

3. Your average transaction value justifies the click cost. Google Ads for local services in competitive markets can cost $8-25 per click. A $15 click is expensive if you sell $20 products. It's cheap if your average customer is worth $3,000. Understanding whether PPC makes sense for your business starts with this math.

Where Google Ads struggles: Brand awareness. If nobody is searching for your specific service yet, there's no demand to capture. A new type of fitness class, an unfamiliar product category, or a service people don't know they need won't generate search volume.

When Facebook Ads Wins

Facebook Ads (which includes Instagram, since they share the same ad platform) performs best when:

1. Your product or service is visual. Restaurants, fitness studios, home renovations, retail, event venues. When someone can look at your ad and immediately feel something, Facebook's visual format outperforms a text-based search ad. A photo of a beautifully renovated Frederick kitchen does more selling than any headline on Google.

2. You need to build awareness first. If your audience doesn't know your business exists or doesn't realize they need what you offer, Facebook's targeting lets you introduce yourself to the right people. A new yoga studio in downtown Frederick can target health-conscious women aged 25-45 within a 10-mile radius, even though none of them are searching "yoga studio near me" today.

3. Your customer lifetime value comes from repeat purchases. Restaurants, retail stores, subscription services, salons. Facebook excels at staying in front of past customers and lookalike audiences. The cost per acquisition might be lower than Google, and running effective Facebook campaigns on a small budget is more achievable than most business owners expect.

Where Facebook Ads struggles: High-intent, urgent needs. Nobody sees a Facebook ad for a locksmith and saves it for when they get locked out. Facebook is for planting seeds and nurturing interest, not capturing active purchase intent.

Not sure which platform is right for your business? At Amble Media Group, we manage both Google Ads and Facebook Ads for Frederick, MD businesses. Contact us for a free ad strategy review and we'll tell you where your budget will go furthest.

The Numbers: What to Expect

Let's get specific about what each platform costs and delivers for a local business:

Google Ads (Local Services)

Facebook/Instagram Ads (Local)

The cheaper clicks on Facebook look attractive until you factor in intent. A $2 click from someone casually scrolling often converts at a lower rate than a $15 click from someone actively searching. Cost per lead is the number that matters, not cost per click.

The "Both" Strategy: How Smart Local Businesses Use Them Together

The best-performing local ad strategies we manage use both platforms with distinct roles:

Google Ads handles the bottom of the funnel. Capture people actively searching for your service. Bid on high-intent keywords. Send them to a landing page with a clear call to action. This is your consistent lead engine.

Facebook handles the top. Build awareness with your target audience. Show them your work, your team, your satisfied customers. Social proof and customer testimonials perform well here because people trust real stories from real people.

Retargeting bridges the gap. Someone visits your website from a Google search but doesn't convert. Facebook retargeting shows them your ad the next day while they scroll Instagram. This combination consistently outperforms either platform alone.

For a $1,500/month budget, one common split that works well for Frederick-area service businesses:

• $900 on Google Ads (core lead generation)
• $400 on Facebook/Instagram (awareness + retargeting)
• $200 reserved for testing and seasonal adjustments

This isn't a universal formula. The right split depends on your industry, margins, and sales cycle. But it's a reasonable starting framework.

Three Mistakes That Burn Local Ad Budgets

1. Running Google Ads without negative keywords. If you're a high-end home renovation company, you don't want clicks from people searching "cheap kitchen remodel." Negative keywords prevent your ads from showing for irrelevant searches. Without them, 30-40% of your budget typically goes to waste.

2. Boosting Facebook posts instead of running proper campaigns. The "Boost Post" button is easy, which is why Facebook makes it so prominent. It's also the worst way to spend money on the platform. A properly structured campaign in Ads Manager with defined objectives, audiences, and conversion tracking outperforms boosted posts by a wide margin.

3. Sending ad traffic to your homepage. Your homepage serves everyone. An ad serves one specific audience with one specific need. Send Google Ads traffic to a dedicated landing page that matches exactly what they searched for. Send Facebook traffic to a page that continues the story your ad started. The mismatch between ad promise and landing page experience is the most common reason local campaigns underperform.

How to Decide for Your Business

If you need a starting point, this framework covers most local business situations:

Start with Google Ads if:

• People already search for your service by name
• You need leads within the first month
• Your average customer value exceeds $500
• You're in services (plumbing, legal, medical, home improvement, auto repair)

Start with Facebook Ads if:

• Your business is visual or experience-based
• You're new and need to build awareness
• You sell products or lower-ticket services
• You're in retail, food, fitness, events, or beauty

Use both if:

• Your budget allows $1,000+ per month
• You want to capture active searchers AND build future demand
• You're ready to invest in retargeting

Either way, track everything. If you aren't measuring cost per lead and cost per customer acquisition, you're guessing. Analytics turns guessing into decisions.

Frequently Asked Questions

Should a local business start with Google Ads or Facebook Ads?

If people already search for your service by name (plumber, dentist, roofer), start with Google Ads — it captures existing demand. If your business is visual or unknown and needs awareness first (new restaurant, boutique, fitness studio), start with Facebook Ads to build recognition.

How much should a local business spend on Google Ads vs Facebook Ads?

A common starting split for a $1,500/month budget is $900 on Google Ads for lead generation, $400 on Facebook/Instagram for awareness and retargeting, and $200 for testing. The right ratio depends on your industry, margins, and sales cycle.

Can you run Google Ads and Facebook Ads at the same time?

Yes, and using both together typically outperforms either alone. Google captures high-intent searchers while Facebook builds awareness and retargets website visitors who didn't convert on the first visit.

Choosing the right ad platform is a high-stakes decision for a small marketing budget. At Amble Media Group, we manage Google Ads and Facebook Ads for Frederick, MD businesses, and we've seen firsthand what works and what wastes money in this market. Get in touch for a free ad strategy review, and we'll tell you where your budget will go furthest.