The Complete Local Business Advertising Guide: Google, Facebook, and Yelp

The Local Advertising Landscape

Local businesses face unique challenges in digital advertising. You're not competing for national attention—you're competing for customers within a specific geographic area who need your services now.

This guide covers how to effectively advertise a local business using [Google Ads](/services/google-ads), [Facebook Ads](/services/facebook-ads), and [Yelp](/services/yelp-ads), with strategies specific to local markets.

Google Ads for Local Businesses

Local Search Campaigns

Local search campaigns target users searching for services "near me" or in specific locations. These searchers have immediate intent—they need a plumber today, not next month.

Keyword Strategy:

[service] + [location]: "plumber seattle"
[service] + "near me": "plumber near me"
[service] + [neighborhood]: "plumber capitol hill"
Emergency terms: "emergency plumber," "24 hour plumber"

Location Targeting:

Target your service area radius
Use location bid adjustments for high-value areas
Exclude locations you don't serve

Google Local Service Ads

Local Service Ads (LSA) are pay-per-lead ads appearing above traditional search results. They include your Google rating and a "Google Guaranteed" badge (for qualifying businesses).

Advantages:

Pay per lead, not per click
Premium placement above organic and paid results
Trust signal from Google verification
Dispute process for invalid leads

Available Industries:

Home services (HVAC, plumbing, electrical, roofing)
Legal services
Financial planning
Real estate
Healthcare

Qualification:

Background checks required
License and insurance verification
Ongoing review compliance

Call-Only Campaigns

For businesses where phone calls are the primary conversion, call-only campaigns display only on mobile devices with a direct click-to-call action.

Best for:

Emergency services
Businesses with phone-based sales
Services requiring immediate response

Facebook Ads for Local Businesses

Geographic Targeting Options

Facebook offers multiple ways to reach local audiences:

Radius Targeting:

Target users within X miles of your business or a dropped pin.

City/Zip Code Targeting:

Target specific cities or postal codes within your service area.

Business Address Targeting:

Target people near your business location (especially effective for retail).

Exclusion:

Exclude areas you don't serve to prevent wasted spend.

Local Awareness Ads

Facebook's local awareness objective is designed specifically for driving store visits and local engagement:

Prominent map card showing your location
Directions CTA for mobile users
Store hours display
Call button integration

Lead Generation for Local

Facebook Lead Ads can work well for local businesses:

Pre-filled forms reduce friction
Mobile-optimized experience
Direct CRM integration available

Tips for local lead ads:

Include location in ad copy to qualify viewers
Add qualifying questions (service needed, timeline)
Respond immediately—local leads go cold fast

Yelp Advertising for Local Businesses

When Yelp Makes Sense

[Yelp advertising](/services/yelp-ads) works best for:

Businesses users discover through Yelp (restaurants, home services, healthcare)
Categories with strong Yelp presence in your market
Businesses with good review profiles

Yelp Ad Types

Search Ads:

Appear in relevant Yelp searches and competitor business pages.

Enhanced Profile:

Remove competitor ads, add CTAs, showcase photos/video.

Managing Yelp Costs

Yelp can be expensive. Control costs by:

Setting strict daily budgets
Starting small and scaling based on ROI
Implementing call tracking for accurate attribution
Negotiating contract terms carefully

Local Conversion Tracking

Local businesses often convert offline—phone calls, store visits, appointments. Tracking these conversions is essential.

Call Tracking

Use call tracking numbers to attribute phone leads to specific campaigns:

Dynamic number insertion on landing pages
Static tracking numbers for ads
Call recording for quality analysis
Integration with Google Ads and CRM

Providers: CallRail, CallTrackingMetrics, Marchex

Store Visit Tracking

Google offers store visit conversions for qualifying businesses:

Uses mobile location data
Requires Google My Business connection
Needs sufficient traffic volume

CRM Integration

Connect your CRM to ad platforms to:

Track leads through to closed business
Optimize campaigns for actual revenue
Build audiences from customer data

Local Budget Allocation

Starting Recommendations

Google Ads: 50-60%

Highest intent (active searchers)
Most controllable
Clear attribution

Facebook: 20-30%

Brand awareness
Retargeting
Lead generation

Yelp: 10-20%

If relevant category
Good review profile
Testing budget

Scaling Strategy

Once you've identified what works:

Scale winning channels before adding new ones
Reinvest savings from optimization
Test new channels with capped budgets
Measure incrementality, not just attributed conversions

Multi-Location Considerations

For businesses with multiple locations:

Create location-specific campaigns
Use location extensions
Build dedicated landing pages per location
Track performance by location

Common Local Advertising Mistakes

Targeting Too Broad

National campaigns don't work for local businesses. Every dollar spent outside your service area is wasted.

Ignoring Mobile

Local searchers are often mobile and looking for immediate solutions. Mobile-first is essential.

Poor Review Management

Ads drive traffic to your profiles. If reviews are poor, advertising amplifies your problems.

No Call Tracking

If you don't track calls, you're missing most of your conversions.

Set-and-Forget

Local markets change. Seasonal patterns, competition, and consumer behavior require ongoing optimization.

The Bottom Line

Local advertising requires different strategies than national campaigns. The fundamentals—geographic targeting, conversion tracking, multi-channel approach—apply across platforms but require local-specific execution.

Focus on:

Tight geographic targeting
Call and offline conversion tracking
Platform selection based on your category
Continuous optimization based on actual customer acquisition

Need help with local advertising? Our team manages local campaigns across [Google](/services/google-ads), [Facebook](/services/facebook-ads), and [Yelp](/services/yelp-ads) with proper attribution and ROI measurement.