Should Your Small Business Actually Invest in Online Ads?

Should Your Small Business Actually Invest in Online Ads?

Every week, I speak with small business owners who are wrestling with the same question: should they be spending money on online advertising? It's a fair question, especially when you're watching every penny and trying to figure out which marketing investments will actually pay off.

The answer isn't straightforward, and anyone who tells you otherwise is either selling something or doesn't understand the complexities of running a small business. Online advertising can be incredibly effective, but it can also be a remarkably efficient way to waste money if you don't know what you're doing.

The Promise and the Reality

Google Ads and Facebook Ads promise to put your business in front of exactly the right people at exactly the right time. And when it works, it genuinely does feel like magic. You set up a campaign, people click on your ads, and customers start coming through the door or placing orders on your website.

But here's what the platforms don't emphasise in their marketing materials: getting to that point requires knowledge, testing, and often a fair bit of trial and error. The businesses you hear about that are making a fortune from online ads didn't just throw up a campaign and watch the money roll in. They learned the platforms, tested different approaches, and refined their strategy based on real data.

I've seen small businesses spend thousands of pounds on ads with nothing to show for it. I've also seen businesses transform their growth trajectory by investing a few hundred pounds per month strategically. The difference isn't luck. It's understanding how these platforms work and whether they're actually right for your particular business.

When Online Ads Make Sense

Not every business should be advertising online, at least not right away. If your website isn't converting visitors into customers, sending more traffic to it through paid ads is just throwing money away. You need to get your fundamentals right first: a clear offer, a professional website, and a process for turning enquiries into sales.

Online advertising works best when you have a clear understanding of your customer acquisition cost and lifetime customer value. If you know that the average customer is worth five hundred pounds to your business over time, you can justify spending fifty pounds to acquire that customer through advertising. Without those numbers, you're flying blind.

Certain types of businesses are particularly well-suited to online advertising. If you offer services that people actively search for when they need them, Google Ads can be extremely effective. Someone searching for "emergency plumber Manchester" is a hot lead. They have a problem right now and they need it solved. Appearing at the top of those search results is valuable.

E-commerce businesses often do well with Facebook and Instagram ads because these platforms are excellent at targeting based on interests and behaviours. If you sell a specific type of product, you can show your ads to people who have demonstrated interest in similar products. That targeting capability is powerful when used properly.

The Google Ads Reality Check

Google Ads is the platform most small businesses think of first, and for good reason. When someone searches for what you offer, appearing at the top of the results can drive highly qualified traffic to your website. But Google Ads has become increasingly competitive and expensive over the years.

The cost per click varies enormously depending on your industry and location. In competitive sectors like legal services or insurance, a single click can cost tens of pounds. Even in less competitive industries, you might pay several pounds per click. If only a small percentage of those clicks convert into actual customers, the maths can work against you quickly.

The key to making Google Ads work is relevance and quality. Google rewards advertisers who create ads that closely match what people are searching for and who send people to landing pages that deliver on the ad's promise. If you're advertising emergency plumbing services, your ad should specifically mention emergency plumbing, and clicking it should take people to a page about emergency plumbing, not your generic homepage.

Many small businesses make the mistake of bidding on broad keywords that sound relevant but attract the wrong kind of traffic. Someone searching for "website design" might be looking for a designer to hire, but they might also be a student researching a project or someone looking for free tools. You pay for that click either way. Focusing on more specific, intent-driven keywords usually delivers better results, even if the search volume is lower.

Meta Ads: Facebook and Instagram

Facebook and Instagram ads work differently from Google Ads. Instead of targeting people based on what they're actively searching for, you're targeting based on demographics, interests, and behaviours. This makes Meta ads particularly good for building awareness and reaching people who might not know they need your product or service yet.

The visual nature of these platforms means your creative matters enormously. A compelling image or video can stop someone mid-scroll and get them interested in what you're offering. Poor creative, on the other hand, will be ignored no matter how good your targeting is.

Meta's advertising platform has become more sophisticated over the years, but it's also become more complex. The days of simply boosting a post and getting great results are largely gone. Effective Facebook and Instagram advertising now requires understanding campaign objectives, audience targeting, ad formats, and the platform's optimisation algorithms.

One advantage Meta ads have over Google Ads is the typically lower cost per click. You can often reach people for a fraction of what you'd pay on Google. The trade-off is that the traffic is generally less qualified because people weren't actively searching for what you offer. They were scrolling through their feed and your ad caught their attention.

The Skills Gap Problem

Here's the uncomfortable truth that nobody in the advertising industry wants to emphasise: running effective online ad campaigns requires skills that most small business owners don't have and don't have time to develop. You're already running a business, which is a full-time job in itself. Adding "become a digital marketing expert" to your to-do list isn't realistic.

The platforms themselves want you to believe it's easy. They provide tutorials and support, and they'll happily take your money while you figure things out. But there's a massive difference between understanding the basics of how to set up a campaign and actually running campaigns that deliver a positive return on investment.

This is where many small businesses face a difficult decision. Do you invest the time to learn how to do it properly yourself? Do you hire someone to manage it for you? Or do you decide that your money is better spent on other marketing activities?

There's no universal right answer. Some business owners genuinely enjoy the analytical side of marketing and find satisfaction in learning the platforms and optimising campaigns. Others find it tedious and frustrating, and they're better off focusing on what they do best and delegating the advertising to someone who specialises in it.

The Budget Reality

One of the most common questions I hear is "how much should I spend on online advertising?" The honest answer is that it depends on your business, your margins, your goals, and your market. But I can give you some practical guidelines.

If you're just starting out with online ads, don't commit a large budget immediately. Start with a modest amount that you can afford to lose while you're learning. A few hundred pounds per month is enough to gather data and test whether ads can work for your business. If you see promising results, you can gradually increase your spend.

Remember that your ad spend isn't your only cost. If you're paying someone to manage your campaigns, that's an additional expense. A common arrangement is to pay a percentage of ad spend as a management fee, typically somewhere between ten and twenty percent. So if you're spending a thousand pounds on ads, you might pay an additional one to two hundred pounds for management.

You also need to factor in the time cost if you're doing it yourself. Learning the platforms and managing campaigns properly takes hours each week. That's time you're not spending on other aspects of your business. Sometimes paying someone else to handle it is more cost-effective than doing it yourself, even if you could learn how.

Testing and Optimisation

Successful online advertising is built on testing and optimisation. Your first campaign will almost certainly not be your best campaign. You need to try different ad copy, different images, different targeting, and different landing pages to find what works for your specific business.

This is where many small businesses give up too early. They run one campaign, don't get the results they hoped for, and conclude that online advertising doesn't work for them. But often, they were one or two iterations away from finding a winning approach.

The key is to change one variable at a time so you can identify what's actually making a difference. If you change your ad copy, your image, and your targeting all at once, you won't know which change improved your results. Systematic testing takes patience, but it's how you move from spending money on ads to actually making money from ads.

You also need to track your results properly. The platforms will tell you how many clicks you got and how much you spent, but that's not enough information. You need to know how many of those clicks turned into actual enquiries or sales. That requires proper conversion tracking, which is a technical setup that many small businesses skip. Without it, you're making decisions based on incomplete information.

When to Walk Away

Not every business should be advertising online, and there's no shame in deciding it's not right for you. If you've tested properly, given it a fair chance, and the numbers simply don't work, your money might be better spent elsewhere.

Some businesses are better served by focusing on organic search engine optimisation, building their reputation through content and reviews, and relying on word-of-mouth referrals. These approaches take longer to show results, but they can be more sustainable and cost-effective for certain types of businesses.

Local businesses with a strong community presence might find that traditional local marketing activities deliver better returns than online ads. Sponsoring local events, building relationships with complementary businesses, and being active in community groups can be more effective than trying to compete in expensive online ad auctions.

The important thing is to be honest about what's working and what isn't. Don't keep throwing money at ads because you feel like you should be advertising online or because a marketing agency convinced you it's essential. Make decisions based on actual results and what makes sense for your specific situation.

Getting Professional Help That Actually Helps

If you decide that online advertising could work for your business but you don't want to become an expert yourself, choosing the right person or agency to work with is crucial. Unfortunately, the digital marketing industry is full of people who talk a good game but don't deliver results.

Look for someone who asks questions about your business, your customers, and your goals before they start talking about campaigns and strategies. Anyone who promises guaranteed results or claims they can make you rich with ads is someone to avoid. Good marketers are honest about the fact that success requires testing, optimisation, and sometimes accepting that a particular approach isn't working.

Ask about their experience with businesses similar to yours. Someone who's successfully run campaigns for e-commerce businesses might not be the right fit for a local service business, and vice versa. The strategies and tactics that work vary significantly depending on your business model.

Make sure you understand what you're paying for and what results you should expect. A good marketing partner will set realistic expectations and provide regular, transparent reporting on campaign performance. You should always have access to your own ad accounts and data. If someone wants to keep everything locked away in their own accounts, that's a red flag.

The Eccleshall Websites Approach

This is where working with a company like Eccleshall Websites makes sense. They understand that online advertising isn't a one-size-fits-all solution. They'll have an honest conversation with you about whether ads are right for your business at this stage, and they won't push you into spending money if the fundamentals aren't in place first.

Their approach combines website development with online marketing strategy, which is exactly what small businesses need. There's no point having great ads if your website doesn't convert visitors into customers. And there's no point having a great website if nobody's visiting it. You need both elements working together.

They're particularly strong with Google Ads and Meta advertising for UK small businesses, which means they understand the local market and the specific challenges that UK businesses face. They also work with realistic budgets, which is important when you're a small business watching your cash flow.

Building a Sustainable Marketing Strategy

Whether or not you decide to invest in online advertising, you need a broader marketing strategy that doesn't rely on any single channel. The most successful small businesses I work with have multiple ways of attracting customers. They might use a combination of organic search traffic, paid advertising, social media, email marketing, and traditional networking.

This diversification protects you from changes in any single platform or channel. If Google changes its algorithm or Facebook increases its ad costs, you're not completely dependent on that one source of customers. You have other channels that continue to bring in business.

For those who are serious about building multiple income streams and understanding the full range of options available for earning online, Making Money From Home (2026) provides comprehensive, practical guidance. It covers not just online advertising but the entire ecosystem of digital business, helping you understand where advertising fits into your broader strategy.

Making Your Decision

So should your small business invest in online ads? Here's my practical advice: make sure your website and basic online presence are solid first. Then, if you have a clear understanding of your customer value and you're prepared to invest time in learning or money in professional management, test online advertising with a modest budget.

Give it a proper chance with systematic testing and optimisation. Track your results honestly. If the numbers work, gradually increase your investment. If they don't, be willing to try different approaches or accept that your marketing budget is better spent elsewhere.

Online advertising is a powerful tool, but it's just one tool in your marketing toolbox. The businesses that succeed online are the ones that use the right tools for their specific situation and that don't fall for the hype promising overnight success. Be strategic, be patient, and be willing to learn from both successes and failures.

The opportunity is real, but so are the challenges. Approach online advertising with realistic expectations, proper preparation, and a willingness to adapt based on what the data tells you. That's how you turn ad spend from an expense into an investment that actually grows your business.