9 Small Business Ads Strategies and the 4 Best Ad Channels

Advertising is a major challenge for small business owners, and with so many channels and strategies to choose from, finding the right combination can feel like finding a needle in a haystack.

Also, the haystack is on fire.

In this article, we’ll dive into nine small business advertising strategies (and channels) that will help you get the most out of your marketing budget. 

Recommended channels for small business ads

Before we dive into the strategies, we're going to take a minute to cover the most effective channels for small business ads in 2024.

1. Social media advertising

Social media advertising is the practice of promoting your products or services on platforms like Facebook, Instagram, LinkedIn, and TikTok through paid ads. These paid platforms offer a variety of ad types and sizes, including image ads, video ads, and carousel ads.

Most businesses post organically on social media, which is a great start. However, paid social ads provide immediate, targeted reach to specific audiences, while organic posting relies on slower, less predictable growth.

This channel is often the easiest and most accessible option for small businesses because it offers user-friendly platforms with simple ad creation tools, even for beginners. Most social platforms like Facebook, Instagram, and TikTok provide step-by-step guides and visual aids to streamline the process, making it easy to create effective ads with little experience.

Additionally, social media platforms offer powerful audience targeting options, allowing small businesses to reach their exact customer base with precision. They also provide detailed audience insights and analytics in real time, offering businesses the ability to track every click, lead, and purchase in one place. This instant feedback allows for quick adjustments to improve ad performance, ensuring every dollar spent is optimized for better results.

2. Paid search advertising

Paid search advertising, often referred to as Pay-Per-Click (PPC) advertising, primarily takes place on search engines like Google (Google Ads) or Bing. With PPC, businesses bid on specific keywords related to their products or services, and ads appear at the top of search engine results when users search for those keywords.

This is a great option for small businesses looking to capture demand. For example, a local plumbing service could use PPC ads to appear at the top of search results when someone searches for “plumber near me.” Paid search ads are perfect for businesses with services or products people actively search for, and they can drive high-intent traffic to your website or store.

3. Email marketing

Email marketing involves sending targeted emails to a list of customers or subscribers who have opted in to receive communications from your business.

Email marketing is an important channel for small businesses as it offers direct, consistent access to audiences without reliance on changing social algorithms or the rising costs of paid ads. In fact, 31% of marketers are using it today.

Businesses can use promotional emails to notify subscribers about upcoming sales, share updates, offer exclusive deals, and build long-term relationships with customers. It’s an affordable, scalable option for driving repeat business and keeping your brand at the top of mind.

4. Offline advertising

Offline advertising refers to any promotional activity that occurs, well, outside of the Internet. These are typically traditional channels and strategies like:

• Direct mail
• Print advertising (newspaper and magazine ads)
• Radio ads/TV commercials
• Vehicle wraps, signage, and billboards

And while these strategies can still work, it can be extremely difficult to track their effectiveness, as there are fewer tools available to measure return on investment (ROI) compared to online channels with precise analytics.

9 clever small business ad ideas

While all of the channels above have pros and cons, the easiest (and the quickest path to positive ROI) will be through paid search or social advertising. To this end, let's look at some specific small business ads strategies we can employ on these channels today.

1. Show them how to use your product

Sometimes, using your product correctly is not as easy as it looks—or conversely, it can be way easier than it appears. The best way to address both of these issues is head-on by using a tutorial video like Glamnetic.

While getting your nails done professionally can be a costly venture, Glamnetic shows its potential customers just how easy it is to get a salon-quality experience at home without breaking the bank or having to become a cosmetologist yourself. 

2. Offer limited-time deals

Create a sense of urgency by offering discounted product bundles or product varieties for a limited time. This works well for seasonal items or complementary products that add to an item a prospect is already interested in.

3. Run a social media contest

If you're looking to attract more new eyes to your brand, there's no easier way to do so than by giving something away for free!

Many contests require participants to follow your account, like a post, or tag friends, which naturally boosts your follower count. The excitement and buzz around the contest can create a ripple effect, drawing attention from people who may not have been familiar with your brand before.

4. Leverage augmented reality (AR) for virtual fittings

I'm an incredibly pale person—so much so that I think a piece of paper might have a leg up on me in the melanin department. This makes finding makeup that matches my skin tone nearly impossible online. Until AR hit the scene, that is.

Augmented Reality is a technology that overlays digital elements, like images or sounds, onto the real world via smartphones, tablets, etc. In this example, TirTir has an AR filter that can overlay shades of their foundation onto your face in real time, helping you find your exact shade match in seconds:

Many businesses can help their customers solve issues exactly like mine through the use of AR. In fact, 71% of users say they would shop more often if AR was available. In my case, I've been a happy TirTir customer ever since I found my perfect shade using the filter above.

5. Get their deets with lead generation ads

While most use paid ads to generate direct sales, businesses in any industry can also use ads for lead generation.

B2B businesses can advertise eBooks, case studies, or even consultations in return for a contact’s name and email address. For B2C brands, offering discounts, birthday freebies, or rewards points can help increase your conversion rates for these campaigns.

Once these leads have been exported to your CRM, you can nurture them through your sales funnel directly via email. As we mentioned before, email marketing allows you to stay connected with your audience amid ever-changing algorithms, so using ads as a way to capture contact information can help you stay top of mind.

(P.S. You can leverage the pre-existing data in your CRM to create custom audiences/retargeting audiences to use in your campaigns!)

6. Offer trial periods or product samples

Some prospects might be hesitant to take the plunge with your business, but you can easily convert them over to your side by allowing them to try your product or service at no cost.

Whether it's a sample of a skincare product or a free month of a software subscription, it lowers the risk for first-time buyers and encourages conversions.

7. Optimize your marketing budgets to manage costs

Cost can be one of the most prohibiting factors in advertising, doubly so if you’re going the traditional offline route.

Luckily for us, the cost of advertising online is a much more affordable option, especially on platforms like Meta, where the cost of Facebook ads makes it one of the most affordable ways to reach your target audience.

If you’re optimizing your budget properly, that is.

In ad terms, budget optimization is the technical term for allocating your ad spend in the most effective way, typically by refining your ads, channels, and targeting options to direct more resources toward the ones that are giving you the best ROI.

For example, if you’re running multiple ad sets and some are driving more conversions than others, budget optimization tools (like Facebook’s Advantage campaign budget or Madgicx’s Automation Tactics) will automatically shift more of your budget to the high performers. 

By continually evaluating and adjusting your campaign’s spend, you can ensure that your money works harder for you.

(P.S. We have an entire guide on how to make a Facebook ad available for those of you who want to get a jump on Meta advertising right away! But note that you will need to make a Facebook Business Page and get familiar with the Facebook Ads Manager tool as well.)

8. Automate your workday with marketing software

Small businesses often face the challenge of limited time and resources, which makes it difficult to manage all aspects of their marketing efforts effectively.

Automating tasks like social media advertising, email marketing, and performance tracking not only reduces the workload but also improves efficiency. With the right tools, small businesses can create data-driven campaigns, manage multiple platforms simultaneously, and optimize their ad strategies—all without needing a large marketing team.

Using social media advertising tools, for instance, allows you to automate budget allocation, creative production, and performance analysis, freeing up valuable time to focus on other areas of your business. However, finding a solution that’s both powerful and budget-friendly can be tricky for smaller businesses.

That’s where the power of Madgicx comes in. ;)

As an AI-powered super app designed for Meta ads, Madgicx makes enterprise-level advertising solutions accessible and affordable for small and medium-sized businesses.

With Madgicx, you get access to advanced AI that improves your Facebook and Instagram ads  by optimizing your campaign budget and delivering powerful results without the need for extensive manual oversight, like:

• AI Marketer acts like an always-on media buyer, making improvement recommendations based on your campaign performance. Developed by experienced Facebook ad specialists with more than ten years of experience managing billions in ad spend, it's like having a built-in expert advising you every step of the way.
• Business Dashboard provides a holistic view of the health of your most important metrics—view Meta ads reports, Google Analytics breakdowns, Google and TikTok ads analytics, Klaviyo CRM information, and even Shopify commerce data at your fingertips.
• Creative workflow tools that design ads for you in a snap with AI, give you access to thousands of real ad examples for design inspo, and provide insights into your best-performing creatives.

And, because we like to follow our own strategies, you can even try Madgicx for free for 7 days to test out all of the tools above!

9. Hit ‘em with the right shot

When it comes to capturing attention, relevance is key—and if you don’t know your audience at its core, you’ll never be able to create an ad that truly motivates them to take the next step with your business.

The answer: create ads that pack a punch. 

If you’re not sure how to do that, just follow these easy rules:

• Use high-quality images or video: It’s 2024, and pixelated graphics are out. Use sharp, high-quality visuals that catch the eye, make sure they’re relevant to your product, and highlight an offer your audience would stop scrolling for.
• Write a catchy headline: Keep your headline short, punchy, and benefit-driven. It should immediately grab attention and make people want to know more.
• Add a clear call to action (CTA): Guide your audience on what to do next with a strong CTA like "Shop Now" or "Learn More." Make it easy to spot and action-focused.
• Design for mobile: Keep mobile users in mind by making text readable, using vertical layouts, and ensuring any websites you link to can be easily accessed on mobile devices.
• Stay on-brand and keep it clean: Stick to your brand’s colors, fonts, and style for consistency. A simple layout with minimal text lets your message shine without cluttering the ad.

How much should a small business pay for advertising?

The amount a small business should allocate to advertising varies depending on its industry, size, and growth goals, but a general guideline is to spend about 7-10% of gross revenue on marketing. In 2024, companies spent around 7.7% of their revenue on marketing, slightly down from 9.1% in 2023.

If you want to be able to narrow down the exact cost of your business, you can use tools online (like our own Facebook ad cost calculator) to determine what you need to spend to achieve your goals.

Small business ad examples

To send you off with ideas in mind, here are some small business ads to get the creative juices flowing!

Reaper Miniatures

Reaper Miniatures sells miniature figurines and paint for tabletop roleplaying games like Dungeons and Dragons. In this ad, they take advantage of Halloween (and some smart marketing strategies) to come up with a creative way to capture more revenue:

Everyone loves getting freebies with their order, and offering them with a minimum order threshold is one of the best ways to increase your average order value. They offer 5 bottles of paint, a free limited-time sculpt, and even a sweet treat to boot for those who spend at least $50. Given that most of their products are under $6, this is a fantastic way to help increase the amount of revenue gained per purchase while providing their new customers with incredible value.

P.S. You can find even more small business ads in the Facebook Ad Library!

Squatty Potty

They might be a household name now, but a decade ago, they splashed onto the scene with one of the most iconic commercials of all time.

Harmon Brothers, the marketing agency behind the commercial, is also responsible for several other well-known comical campaigns for brands like Poo-pourri and Purple.

This example proves that even a smelly topic can be covered in a creative way.

Cards Against Humanity

Cards Against Humanity is a popular party game notorious for its dark humor and politically incorrect cards—and just like their card game, their marketing team is known for being unique.

Some of their Black Friday tactics include asking for donations to dig a giant hole in the ground, giving people money for completing random tasks like guessing how many jellybeans are in a Cadillac, and selling a literal box of cow dung.

My favorite? Charging customers $5 for no product at all.

While you may think nobody in their right mind would give a company five dollars for nothing, their results proved otherwise. They earned over $71,000 from over 11,000 participants for this campaign alone (while others mentioned above have earned over $100k).

While I can't say any of these exact strategies are repeatable for businesses, there is one piece of valuable advice we can take away from this company: sometimes, it pays to be ridiculously weird.

Conclusion

Having a solid advertising strategy is essential for the success of small businesses around the globe. By leveraging the right mix of channels—whether digital or traditional—you can increase visibility, attract new customers, and drive meaningful growth.

The key is to focus on strategies that align with your business goals, target audience, and budget. With the insights we've covered, you’re now equipped to make informed decisions about your small business ads, ensuring you get the most out of your marketing efforts.