Paid Advertising

Google Ads vs Facebook Ads

Which one is better for a small business? A plain-English comparison of when each channel wins, what they cost, and how to pick the right one for your business.

By Lachlan · 31 May 2026 · 8 min read
Back to blog
Quick answer: Google Ads wins when people are already searching for what you sell, like an emergency plumber or an EV charger installer. Facebook and Instagram ads win when you need to put your business in front of people who would buy if they saw it, but aren't actively searching, like a new cafe or a seasonal offer. For most local small businesses on a tight budget, pick the one channel that matches how your customers buy, get it profitable, then add the second one later.

It's the question almost every small business owner asks before spending a dollar on advertising: should I run Google Ads or Facebook ads? Both promise leads. Both cost money. And the advice online is usually written by someone trying to sell you whichever one they specialise in.

Here's the honest version, written for local small business owners. No jargon, no hidden agenda. The two channels do genuinely different jobs, and once you understand the difference, picking the right one is straightforward.

The core difference, in one sentence

Google Ads catches demand. Facebook ads create it.

That one line explains almost everything. When someone types "emergency electrician Manly" into Google, they already want an electrician. They're not browsing, they're buying. Google Ads puts you in front of that person at the exact moment they're ready to call. You're catching demand that already exists.

Facebook and Instagram are different. Nobody opens Instagram looking for a plumber. They're scrolling through photos, catching up with mates, killing time. A Facebook ad interrupts that scroll to show your business to someone who wasn't looking for it, but who might want it once they see it. You're creating demand that wasn't there a second ago.

Neither is better in the abstract. They're better at different things, for different businesses.

1 When Google Ads is the better choice

Google Ads is the stronger channel when your customers actively search for what you offer. That usually means one or more of these is true:

For a lot of trades and local services, Google Ads is a natural fit. When someone searches "electrician near me", they're ready to pick up the phone. The click costs more than a Facebook click, but the person clicking is much closer to becoming a paying job. If this sounds like your business, our Google Ads management page covers how we set this up for Northern Beaches businesses.

The catch with Google Ads: wasted spend on the wrong searches. If you sell EV charger installs and your ad shows for "EV charger price" or "DIY EV charger", you pay for clicks that never convert. Tight keyword targeting and a solid list of negative keywords matters more than clever ad copy. This is the part most DIY Google Ads accounts get wrong.

2 When Facebook and Instagram ads are the better choice

Facebook ads are the stronger channel when your customers aren't searching for you, but would be interested if they saw you. That usually means one or more of these is true:

Facebook ads also tend to be cheaper per lead, because you're interrupting people rather than competing in a live auction for high-intent searches. For a small business with a budget under about $1,000 a month, that lower cost often means Facebook stretches further. Our Facebook and Instagram ads page walks through how we run these for local businesses.

The catch with Facebook ads: the audience didn't ask to see you, so the creative has to earn the click. A boring image of your logo will get scrolled past. The ads that work show a real result, a real face, or a real offer. Even with perfect targeting, weak creative kills a Facebook campaign faster than anything else.

Google Ads vs Facebook ads, side by side

Here's the quick comparison for a typical local small business:

Factor Google Ads Facebook & Instagram Ads
Best for Urgent or searched-for services Discovery, visual products, offers
Buyer intent High, they're already searching Lower, you're creating the interest
Cost per click Higher Lower
Speed to first lead Fast, often days Fast, often days
What makes or breaks it Keyword targeting Creative and offer
Typical local fit Trades, emergency services, B2B Cafes, beauty, retail, fitness, renovations

Should a small business run both?

Eventually, maybe. The two channels work well together: Facebook builds awareness, and Google catches the search once that awareness turns into intent. Bigger businesses run both for exactly this reason.

But if you're a small business with a limited budget, splitting it across both usually means doing neither one well. A $600 monthly budget spread across two channels rarely gives either enough room to find its feet. The smarter play is almost always:

  1. Pick the one channel that matches how your customers actually buy, using the two sections above.
  2. Get it profitable and learn what works for your business, your area, and your offer.
  3. Add the second channel once there's budget to run both properly, not before.

One well-run channel beats two half-run ones every time. There's no prize for being on every platform if none of them are working.

The free channel most businesses skip first

Before you spend a cent on either, one honest point: for a local business, the highest-return channel is often the free one. A fully optimised Google Business Profile with steady reviews captures the same high-intent local searches Google Ads targets, without the per-click cost.

Paid ads are how you grow faster or fill a quiet patch. But if your Google Business Profile isn't sorted and you're not collecting reviews, that's usually the first dollar worth spending, before the ad budget. Our local SEO guide covers how to set that foundation.

What should you actually budget?

Most local small businesses start somewhere between $300 and $800 a month in ad spend, plus a management fee if an agency runs it for you. The right number comes down to two things: how many jobs you can handle, and what a customer is worth to you.

A sensible approach is to start small enough that a slow month doesn't sting, prove the channel converts leads into paying customers, then scale the spend up as the numbers hold. For a fuller breakdown of what trades pay, our guide on how much Facebook ads cost for tradies runs through real campaign numbers. If you'd rather hand the whole thing over, the Monthly Growth Retainer bundles ads, Google Business management, SEO, and reviews into one package.

The promise to be wary of: any agency that tells you their channel is the only one that works, before asking a single question about your business. Google Ads and Facebook ads both work brilliantly for the right business, and both waste money on the wrong one. The honest answer always starts with "it depends on how your customers buy".

Common questions

Is Google Ads or Facebook ads better for a small business?

It depends on whether your customers are already searching for what you sell. Google Ads is best when people know they need your service and are actively searching for it, like an emergency plumber or a smash repairer. Facebook and Instagram ads are best for showing your business to people who would buy if they saw it, but who aren't actively searching, like a new cafe, a cosmetic service, or a seasonal offer. Most local small businesses do well with one channel done properly rather than splitting a small budget across both.

Which is cheaper, Google Ads or Facebook ads?

Facebook ads almost always have a lower cost per click and cost per lead, because you're interrupting people rather than competing for high-intent searches. Google Ads clicks cost more, but the people clicking are usually closer to buying, so the cost per actual job can work out similar or better depending on the industry. For a tight budget under about $1,000 a month, Facebook ads usually stretch further.

Can I run Google Ads and Facebook ads at the same time?

Yes, and larger businesses often do, because the two channels capture demand at different stages. Facebook builds awareness and Google catches the search once that awareness creates intent. For a small business with a limited budget, though, it's usually smarter to pick the one channel that fits your buying pattern, get it working profitably, then add the second channel once there's budget to do both properly.

How much should a small business spend on paid ads?

Most local small businesses start somewhere between $300 and $800 a month in ad spend, plus a management fee if an agency runs it. The right number depends on how many jobs you can handle and what a customer is worth. A good rule is to start small enough that a bad month doesn't hurt, prove the channel works, then scale the spend up as the leads convert into paying customers.

Do Google Ads work for tradies and local services?

Very well, especially for urgent or high-value jobs that people search for the moment they need them, like emergency electrical work, blocked drains, or EV charger installation. When someone types "electrician near me" into Google, they're ready to call. The main risk for trades is wasted spend on the wrong searches, which is why tight keyword targeting and negative keywords matter more than the ad copy itself.

Related services

Google Ads · Facebook & Instagram Ads · Google Business Profile Setup · Monthly Growth Retainer

Not sure which one fits your business?

Free 20-minute call to work out whether Google Ads, Facebook ads, or a sorted Google Business Profile is the right first move for your business. No obligation, no sales pitch, just an honest answer based on how your customers buy.

Get a free, honest recommendation