Facebook and Instagram Ad Strategies for Local Businesses That Actually Work

Running Facebook or Instagram ads is one of the most powerful ways to reach people who don’t even know your business exists yet. But if you’re a local or service-based business, how you run those ads matters just as much as what you’re offering.

In this post, I’ll walk you through the exact Facebook and Instagram ad strategies we use for our clients at Liquis Digital to get real results—more leads, more sales, and more visibility in your local market.

First, Let’s Get Clear on the Anatomy of a Facebook Ad

Before jumping into strategy, it’s important to understand how Facebook ads are structured:

• Campaigns – This is where you set your objective (what you want the ad to accomplish) and your budget.

• Ad Sets – Here’s where you define your target audience and placement.

• Ads – This is the creative: your image, video, text, and call to action.

You’ll also need to work with:

• Audiences – Custom groups of users you want to target.

• Events – Actions (like form submissions or purchases) that Facebook tracks as “conversions.”

Now, let’s dive into the strategies.

The Campaign Types That Actually Work

Facebook gives you several campaign objectives, but for most local businesses, these are the only two you really need:

1. Sales – Use this when you want people to take an action, like filling out a form or booking a service.

2. Engagement – Ideal for building awareness and generating interaction (likes, shares, comments, video views).

Other options like Leads, Traffic, and Awareness have their uses, but we’ve found that Sales and Engagement drive the best results for local service businesses.

The Two Buckets: Prospecting vs. Retargeting

All of our campaigns fall into two main categories:

1. Prospecting Campaigns (Cold Traffic)

This is where you’re reaching people who have never heard of your business.

• Campaign Objective: Sales (conversion-focused)

• Targeting: Interest-based or Lookalike Audiences

  • Example: A MedSpa might target users interested in skincare, Botox, or spa services.

• Audience Size: Aim for around 1–2 million people

• Starting Budget: $30–$40 per day

✅ Pro Tip: Keep your ad creative attention-grabbing. Your audience isn’t actively searching for your service—you’re interrupting their scroll. Start with a strong hook that speaks to their pain point.

2. Retargeting Campaigns (Warm Traffic)

These ads are shown to people who already interacted with your business in some way—website visitors, social media engagers, etc.

There are two retargeting strategies we use:

A. Engagement-Based Retargeting

Build an audience of people who:

• Watched at least 50% of your video

• Liked, commented on, or shared your posts

Then, retarget these audiences with Sales campaigns that drive action (like filling out a form or scheduling a call).

B. Website Visitor Retargeting

You’ll need the Facebook Pixel installed on your site. Create an audience of users who visited your website within the last 90 days, then run ads to them that push for conversion.

Bonus: How to Set Up a Winning Ad

Whether you’re prospecting or retargeting, your ad creative matters:

• Use scroll-stopping visuals – Videos, bold images, or carousels

• Open with a strong hook – Make it emotional, urgent, or problem-focused

• Speak directly to your ideal customer – Show you understand their pain and offer a solution

Remember: On social platforms, your ad needs to earn attention, not just exist.

Final Thoughts

If you’re a local or service-based business, Facebook and Instagram ads are one of the most cost-effective ways to grow. Focus on the right objectives, break your campaigns into prospecting and retargeting, and craft creative that truly resonates.