Instagram Ads vs Facebook Ads for Local Business

For local businesses in the UK, advertising budgets must be used wisely. Digital advertising has opened up cost effective ways to reach nearby customers, but choosing the right platform is not always straightforward. Two of the most popular options are Instagram Ads and Facebook Ads. Both are managed through Meta’s Ads Manager, yet they behave differently and attract different audiences. Understanding the strengths of each platform is essential for making informed decisions about where to invest for maximum impact.

The Case for Facebook Ads

Facebook remains one of the largest social networks in the UK, with a broad demographic that includes young professionals, parents, older generations and community focused users. For local businesses, this wide reach is a major advantage. Facebook Ads allow precise targeting by location, age, interests and behaviours, making it possible to focus on people within a specific radius of your business. The platform also offers a range of ad formats including carousel ads, lead generation forms and event promotions. This makes it particularly useful for service based businesses such as solicitors, estate agents and tradespeople who want to attract enquiries directly through the platform.

The Case for Instagram Ads

Instagram, while also part of the Meta network, has a very different audience profile. It tends to attract younger demographics, particularly those under 35, who use the platform for lifestyle inspiration, visual content and brand discovery. Instagram Ads are highly visual, with emphasis on Stories, Reels and image based placements. For local businesses in industries such as hospitality, retail, beauty and fitness, this visual environment provides an opportunity to showcase products and experiences in a way that drives instant engagement. A café in Manchester might use Instagram Stories to promote a daily special, while a hair salon in London could use Reels to highlight transformations.

Targeting Capabilities

Both Facebook and Instagram Ads use the same targeting infrastructure within Meta Ads Manager, which means that local businesses can take advantage of geotargeting, interest based targeting and custom audiences. For example, a solicitor in Bristol could target ads to users within 10 miles of the city centre, while a restaurant in Glasgow could target ads to people who have shown interest in dining out. The difference lies in how these audiences interact with the platforms. Facebook users often respond to informative or utility focused content, while Instagram users are more engaged with visual storytelling and lifestyle focused messaging.

Ad Formats and Creative Approach

Facebook Ads offer more variety in formats that lend themselves to direct response marketing, such as click to call ads or appointment booking integrations. This makes them suitable for businesses seeking measurable leads. Instagram Ads, on the other hand, perform best with visually striking creative that blends seamlessly into the user experience. Businesses looking to build brand awareness, encourage footfall or spark local word of mouth often find Instagram better suited to their goals. Choosing the right creative approach is critical, as ads that do not align with the platform’s user expectations tend to underperform.

Cost Considerations

In terms of cost, there is no universal answer as to which platform is cheaper. Both operate on a bidding system where cost per click and cost per impression vary depending on competition. However, Facebook’s broader demographic often means a lower average cost per click for certain industries, especially those targeting older audiences. Instagram can be more expensive in some sectors, but higher engagement rates often justify the cost if creative is well executed. For local businesses with smaller budgets, testing both platforms with modest spend is often the best way to determine cost effectiveness.

Measuring Performance

Measuring results is crucial in deciding which platform works better for your business. Facebook Ads may deliver more direct leads, as users are accustomed to filling out forms and clicking through to external sites. Instagram Ads often drive higher engagement, such as likes, comments and shares, which may build brand loyalty over time but not always deliver immediate conversions. By setting up tracking through tools like Meta Pixel and Google Analytics, businesses can compare the return on investment across both platforms and decide which aligns best with their objectives.

Future Outlook

Looking ahead, both platforms will continue to evolve but their roles may become more distinct. Facebook will likely remain a strong lead generation platform for local businesses targeting a broad demographic, while Instagram will continue to thrive as a hub for visual storytelling and lifestyle driven engagement. For UK businesses, success will often come from using both in combination, tailoring creative and targeting strategies to each platform’s unique strengths.

Conclusion

There is no one size fits all answer to whether Instagram Ads or Facebook Ads work better for local businesses. The right choice depends on your audience, objectives and the type of message you want to convey. Facebook Ads excel in direct response and broad demographic reach, while Instagram Ads are powerful for visually driven engagement and brand awareness among younger audiences. By testing, measuring and adapting strategies, local businesses can find the balance that delivers the best results for their specific market.