How to set up Facebook and Instagram ads that work

A 7 minute read for a better small business.

A quick explainer on setting up Facebook and Instagram ads that actually work

"Scroll down for the step-by-step Pro guide on Facebook and Instagram Ads, we’re starting with the fundamentals."

Facebook and Instagram ads are great tools for small businesses. 

With over 15 million Australians and many businesses active on these platforms, it’s a no brainer for both B2B and B2C business. Especially for B2B where 81% of B2B buyers buy the brand that comes to mind on Day 1 (Linkedin B2B Institute & Bin 2024).

The problem is…it is too easy to waste money.

This article will break down the best ways to set up effective Facebook and Instagram ads, drawing on proven strategies that work for small businesses.

Why are Facebook and Instagram ads important for small businesses?

Facebook ads are essential because they help make your business more visible and increase sales.

With precise targeting, you can get your ads in front of people who are likely to be interested in what you offer. Or, if you’re looking to build awareness, you can cast a wider net. Whether you’re running a local café or an online store, Facebook ads give you the tools to grow your business without blowing your budget.

Okay okay, but where is the proof?

We know a consistent and strategic social media approach works. NOMAD Bouldering Gym grew by 16.02% year-over-year, surpassing the category growth of 13.27%—even with the rise of 44.44% new gyms in Sydney. You can read the full case study here.

How do Facebook and Instagram ads work?

At their core, Facebook and Instagram ads are all about reminding people your business exists.

It’s about keeping your brand top of mind, so when they’re ready to make a purchase, you’re the first one they think of. Even if they don’t click on your ad straight away, just seeing your brand pop up consistently helps build that all-important familiarity and trust.

This is all about top-of-mind awareness—a fancy term for being in people’s heads when the time is right. In advertising theory, it’s the two-step flow of communication: first, people see your ad; later, when they’re ready to act, they’re more likely to engage with your business. Facebook and Instagram ads do a great job of keeping you visible, ensuring your brand stays in front of your audience, even when they’re not actively looking to buy.

Without further ado, the top three tips…

Three upfront Pro tips on Facebook and Instagram ads

"Not in the mood to dive deep? Here’s the highlights, there’s more detail below."

• Use performance-style ads to drive more traffic and sales - Performance ads are designed to spark immediate action—whether it's a purchase, sign-up, or visit. They drive the strongest ROI for smaller businesses. Focus on quick responses by offering clear incentives like discounts or limited-time offers. 
• Make sure you are geo-targeting - Running ads for your business in a state or country you don’t service? That’s money down the drain. Focus on targeting the right radius based on customer data to avoid wasting money.
• Bring up your brand assets (e.g logo) early - People scroll fast, especially on social media. 99% of users won’t make it past the first 2 seconds of your ad, so it’s crucial to get your logo and key message across immediately. 

A late introduction

I’ll keep it short.

With over 8 years of experience in advertising strategy and media, I’ve seen firsthand how Facebook and Instagram ads can make a huge impact. But the majority of people who aren’t deep in the industry tend to mess it up. They throw money at ads, hoping for the best, but without a solid plan, their efforts fall flat. 

It is not about spending more, it’s about setting things up right. 

The step-by-step guide below covers the fundamentals that make their ads successful. 

This isn’t a guide for setting up Facebook and Instagram ads. 

It’s a guide to make your current ads more effective.

Step-by-Step Pro Guide: Setting up Facebook and Instagram ads that work

"Let's get into it"

1. Use performance style ads to drive more traffic and sales

What are performance ads? 

It is the advertising term for ads designed to drive immediate action—whether it's a purchase, sign-up, or visit. These ads focus on getting a quick response by offering clear incentives like discounts, limited-time offers, or strong calls to action. Facebook and Instagram ads are perfect for this.

• Focus your targeting on people in your category who are most likely to be in-market. For a coffee shop, this might mean choosing a 3km radius (because 88% of Aussies drink coffee and most will pop into a local café), while for a tradie offering electrical services, it’s best to limit targeting to homeowners.
• Use clear, direct call to actions telling people exactly what you want them to do—whether it’s claiming a discount, booking an appointment, or buying now.

• Choose the ‘Reach’ objective instead of ‘Conversions’—research by Magic Numbers shows it’s 50% more effective at driving incremental sales
• Weight more of your budget to performance ads than brand ads, according to Magic Numbers performance ads outperform others when driving ROI for smaller businesses and start ups.
• Negatively target your 'Followers' in the custom audiences section by excluding your Instagram and Facebook followers, as well as website visitors. These people are already highly likely to purchase your product, so there's no need to waste ad spend on them.

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2. Use brand style ads to increase likelihood of people purchasing from you in the future

Brand ads focus on building long-term connections with your audience, making them more likely to choose your business when they’re ready to buy. 

Unlike performance ads, which target people already in-market, brand ads cast a wider net, appealing to anyone who could become a customer down the line.

While their main goal is long-term relationship-building, brand ads can still deliver short-term results—especially when done right. Research by System1 (2024) shows that effective brand ads help create a stronger brand presence over time and also provide measurable results sooner than you might think. Even though smaller businesses often see higher ROI with performance ads, well-executed brand ads contribute to sustained growth in the long run.

• Go for broad reach—target your entire category. For example, a car dealership targets everyone who could buy a car (people 18+) within a reasonable distance, say 10km.
• Keep the ad creative emotional and focus on building a vibe around your business.
• Create ads in the vertical mobile-first format, check out the guidelines here for how to make sure your ads are optimised for mobile viewing.

3. Make sure you are geo-targeting (IMPORTANT!!!)

One of the biggest mistakes I see is businesses running ads in locations they don’t service…

The amount of times I see an ad for a bouldering gym or business in a different state or even country is too many. It is a waste of money. 

Geo-targeting helps you focus your ads on people who are most likely to purchase your product or service. You can set the radius based on your customer data, like how far someone is willing to travel.

What is the right radius to geo-target? 

Think about your customer base. For example, if you know your biggest customers travel up to 10km to your business, set your radius to 12km. Don’t just guess—look at the data you have (if you don’t have the data, search it up).

Take NOMAD Bouldering Gym: they set their radius to 8km because research shows that’s the max distance most people will travel to a gym.

4. Be always on and consistent, with your advertising

Keep your advertising always on. 

Of course with running a small business, operations comes first. But where your cashflow permits, invest in consistent advertising.

Research shows that businesses that stop advertising for long periods experience a decline in sales. Smaller businesses tend to see bigger declines than larger brands, which is why it’s even more important to stay visible and remind customers you exist.

This was shown in a study that found brands which ceased advertising for extended periods saw their sales performance decline, reinforcing the need to remain top of mind. 

So, don’t let your business go dark—keep reminding people who you are and what you offer.

5. Bring up your business assets (e.g your logo) early

People scroll fast on social media—especially on Instagram.

99% of people won’t make it past the first 2 seconds.

So, if you want to grab their attention, you’ve got 2 seconds to make it happen.

Get your logo and key message across quickly. A good rule of thumb is to have your logo visible within the first 2 seconds of the ad.

On Facebook and Instagram, your ad shouldn't run much longer than 6 seconds. I’d recommend sticking to a range of 6-10 seconds—just enough to make an impact without losing attention.

Here’s what to keep in mind:

• Show your brand and business assets early—right in the first 2 seconds.
• Keep your message clear—don’t overcomplicate it.
• Use subtitles on videos so people can get your message even with the sound off.

6. Don’t change your ad creative all the time

Don’t constantly change up your ad. 

Consistency is key.

System1 research shows that ads with high effectiveness tend to have a longer lifespan. Not only do they perform better over time, but they’re also more cost-effective since you don’t need to create new assets all the time.

NOMAD Bouldering Gym uses a mix of consistent performance and brand ads, but they stick to the same ads for at least 12 months before refreshing. 

It is more effective, it saves you money and it keeps life simple.

Why Facebook and Instagram ads matter and are worth the effort

At the end of the day, Facebook and Instagram ads are only worth it if you put in the effort to set them up right. Get the approach right from the start, and you’ll end up with more effective ads, less investment, and less work in the long run. A structured approach also means you can pass the work off to a new team member or someone else in the business, without worrying it’ll spiral out of control or perform poorly.

Honestly, my best advice would be…if you’re not willing to take the time to set them up properly, then don’t bother spending money on them.

Cheers,

Zac

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