Marketingintermediate12 min read

Paid Advertising: Google Ads, Facebook Ads, and Where to Start

A practical breakdown of paid advertising platforms for small businesses, including budget guidance, platform selection, and how to avoid wasting money on ads that do not convert.

JC
Josh Caruso
December 3, 2025

When Should You Start Paying for Ads?

Before spending a dollar on advertising, make sure your foundation is solid. That means:

  • Your Google Business Profile is claimed and optimized
  • Your website loads fast, looks professional, and works on mobile
  • You have a clear call-to-action and way to capture leads
  • You can actually handle more work right now

If you are already booked out three months, ads will just create frustrated leads you cannot serve. Fix your capacity first.

If you are ready for more leads and have at least $500/month to invest, paid advertising is the fastest way to fill your pipeline.

Google Ads vs. Facebook Ads: Which One?

This is not an either/or decision, but if you have to pick one, here is the framework:

Google Ads (Search)

Best for: Emergency and urgent services, high-intent searches

When someone types "emergency plumber near me" or "roof leak repair," they need help now. Google Search Ads put you at the very top of results for these queries. This is the highest-intent traffic you can buy.

Typical cost per click: $5-$50+ depending on your industry and location. Competitive trades like HVAC, plumbing, and roofing are on the higher end.

Who should use it: Any service business where customers search Google when they have a problem. This covers most contractors.

Facebook and Instagram Ads

Best for: Planned projects, brand awareness, retargeting

Nobody wakes up and scrolls Facebook looking for a plumber. But if someone has been thinking about a kitchen remodel, a beautiful before-and-after photo in their feed might push them to take action.

Facebook Ads are interruption-based. You are inserting yourself into someone's feed. This works for:

  • Showcasing completed projects with visual impact
  • Promoting seasonal offers ("Book your spring AC tune-up")
  • Retargeting website visitors who did not convert
  • Building brand awareness in your service area

Typical cost per click: $1-$5, much cheaper than Google. But the intent is lower, so conversion rates are also lower.

Google Local Services Ads (LSAs)

Best for: Service businesses that want pay-per-lead instead of pay-per-click

LSAs appear above regular Google Ads with a "Google Guaranteed" badge. You pay per lead (phone call or message), not per click. Costs vary by industry and market but typically run $15-$50 per lead.

The qualification process includes background checks and license verification, which also builds trust with customers.

Setting Up Your First Google Ads Campaign

Campaign Structure

Keep it simple to start:

  1. One campaign focused on your highest-margin service
  2. 2-3 ad groups organized by service type
  3. 10-20 keywords per ad group -- tightly themed

Keyword Selection

Focus on keywords with buying intent:

  • "[Service] near me" (e.g., "plumber near me")
  • "[Service] in [City]" (e.g., "roof repair in Dallas")
  • "Emergency [service]" (e.g., "emergency electrician")
  • "[Service] cost" or "[service] estimate"

Avoid broad keywords like "plumbing" -- you will waste money on people searching for DIY tutorials or plumbing supply stores.

Negative Keywords

Equally important as your target keywords. Add negatives for:

  • "DIY," "how to," "tutorial"
  • "jobs," "hiring," "salary" (job seekers, not customers)
  • "free" (unless you offer free estimates)
  • Competitor brand names (usually)

Writing Ads That Convert

Your ad needs three things:

  1. Relevance: Match the search intent. If someone searches "AC repair," your ad headline should say "AC Repair" -- not "Full HVAC Services."
  2. Differentiation: Why you over the next result? "Same-Day Service," "Licensed & Insured," "4.9 Stars on Google."
  3. Call-to-action: "Call Now for a Free Estimate," "Book Online Today."

Landing Pages

Never send ad traffic to your homepage. Create dedicated landing pages for each service you advertise. Each landing page should have:

  • A headline that matches the ad and search query
  • Your phone number prominently displayed
  • A simple contact form
  • Social proof (reviews, ratings, certifications)
  • No navigation menu (keep them focused on converting)

Budget Management

Starting Budget

Start with $500-$1,000/month on Google Ads for a single service campaign. This gives you enough data to learn what is working within 30-60 days.

Bidding Strategy

Start with "Maximize Clicks" to gather data. After you have 30+ conversions, switch to "Maximize Conversions" or "Target CPA" to let Google optimize automatically.

Daily Budget Distribution

Set your daily budget and let Google distribute it. If your monthly budget is $900, set your daily budget to $30. Google may spend up to 2x your daily budget on high-traffic days but will not exceed your monthly limit.

Tracking and Optimization

Call Tracking

Set up call tracking so you know which ads generate phone calls. Google Ads offers a free call forwarding number, or use a third-party service for more detail.

Conversion Tracking

At minimum, track:

  • Phone calls from ads (set up in Google Ads)
  • Form submissions on your website
  • Cost per lead (total spend divided by total leads)
  • Lead-to-job conversion rate

Monthly Optimization Checklist

  • Review search terms report and add negative keywords
  • Pause underperforming keywords (high spend, no conversions)
  • Test new ad copy against existing ads
  • Check your Quality Score and improve where possible
  • Adjust bids based on day-of-week and time-of-day performance
  • Review geographic performance and exclude low-performing areas

Common Paid Advertising Mistakes

  1. No conversion tracking: Flying blind. You must know what each lead costs.
  2. Sending traffic to your homepage: Use dedicated landing pages.
  3. Too many keywords: Start narrow, expand as you learn.
  4. Ignoring your ads after setup: This requires weekly attention, especially in the first 90 days.
  5. Giving up too soon: The first 30 days are a learning period. Do not judge ROI until month two or three.
  6. Not following FTC guidelines: All advertising must be truthful. Claims must be substantiated. Disclose any material terms of offers.

When to Hire a Professional

If you are spending over $2,000/month on ads, consider hiring a PPC specialist or agency. A good one should:

  • Charge a flat management fee, not a percentage of ad spend
  • Provide monthly reports with clear metrics
  • Give you full access to your ad accounts (you own them, not the agency)
  • Show improvement in cost per lead over time

Your time is valuable. If managing ads takes hours away from running your business, the math usually favors hiring help.

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