Facebook Ads or Google Ads: What Works Better for Local Lead Generation?

Jan 9, 2024

5 min read

In the battle for lead generation supremacy, the question remains: Facebook Ads or Google Ads? Both platforms boast impressive reach and targeting capabilities, but the truth is—there’s no simple answer. Local businesses often find themselves at a crossroads, unsure of which platform will truly deliver the results they need. Is Facebook with its hyper-targeted demographics the king of local lead generation, or does Google’s search intent-driven approach make it the ultimate winner?

Spoiler alert: It’s not as clear-cut as most marketers make it out to be. In this blog post, we’ll dive into the pros and cons of each platform, unpack real-world case studies, and provide data-backed insights that might just challenge your current thinking.

The Power of Google Ads: Intent-Driven Magic or an Overpriced Click Machine?

Google Ads, formerly known as Google AdWords, is often viewed as the tried-and-true method for online lead generation. Google dominates search with over 92.47% of the market share worldwide , which means if you want to reach people who are actively searching for a solution, this is the place to be.

Pros of Google Ads

High Purchase IntentWhen someone types "best local plumber in Raleigh" into Google, they’re looking for a solution—right now. That’s the magic of search intent. With Google Ads, you're not just targeting demographics; you’re targeting behavior. Ads on Google are more likely to convert because users are already looking for what you offer. According to WordStream, the average conversion rate across all industries for Google Search Ads is 3.75%, which is significantly higher than most forms of online advertising .
Incredible Reach and ScalabilityGoogle processes more than 3.5 billion searches every day . With such an expansive reach, Google Ads allows you to cast a wide net across various geographies, demographics, and search intents. This can be particularly powerful for local businesses looking to expand their footprint.
Tailored Bidding for Local CampaignsGoogle’s Local Services Ads (LSA) are designed specifically for local businesses, allowing them to pay for qualified leads rather than clicks. This eliminates much of the guesswork involved in traditional pay-per-click (PPC) campaigns.

Cons of Google Ads

It’s Expensive—Especially for Local BusinessesOne of the most common complaints about Google Ads is the cost. If you're in a highly competitive industry, keywords like "local HVAC services" or "best dentist near me" can cost anywhere between $5 to $50 per click . For small, local businesses operating on a limited budget, this can quickly become unsustainable.
Diminishing Returns with Broad Match KeywordsBroad match keywords may deliver volume, but they often bring irrelevant clicks, especially for local businesses with limited geographical reach. This can inflate your ad spend while lowering your overall lead quality. Not ideal if you’re looking for high-quality local leads.

Facebook Ads: The Demographic Juggernaut or Privacy Nightmare?

Facebook Ads presents an entirely different approach to lead generation. Instead of targeting based on search intent, it focuses on user demographics, interests, and behaviors. If Google is the scalpel of local lead generation, then Facebook is more like a shotgun blast—wide but potentially powerful.

Pros of Facebook Ads

Advanced Targeting Based on Demographics and BehaviorFacebook's ability to micro-target is unmatched. Want to target local Raleigh homeowners aged 25-45 who are interested in home improvement? You got it. Facebook's audience segmentation options allow local businesses to get hyper-specific. According to Statista, Facebook has over 2.9 billion monthly active users , which means the pool of potential leads is vast.
Visual Engagement and StorytellingUnlike Google’s text-based ads, Facebook Ads are visually immersive, allowing local businesses to connect with their audience through compelling imagery and video. This is crucial because video ads on Facebook generate 10 to 30 times more engagement than text ads . For local businesses offering tangible products or services, visual storytelling can make all the difference.
Cost-Effective Lead GenerationAccording to WordStream, the average cost-per-click (CPC) for Facebook Ads is $1.72 . For local businesses operating on a shoestring budget, this makes Facebook Ads a much more affordable option than Google Ads.

Cons of Facebook Ads

Low Purchase IntentThe elephant in the room with Facebook Ads is the lack of purchase intent. People don't go on Facebook to search for a plumber or a real estate agent; they go to connect with friends, consume content, and share life updates. This means you'll often be dealing with a lower-quality lead unless your offer is extremely compelling.
Privacy Concerns and Decreasing Targeting PrecisionAfter the rollout of Apple’s iOS 14 update, which gives users the option to opt out of app tracking, Facebook Ads has taken a hit in terms of ad targeting capabilities. Local businesses relying heavily on Facebook Ads may find their once-precise audience segments growing more blurry. Early data shows a 15% drop in ad spend effectiveness post-iOS 14 .

Real-World Case Studies: Who Wins in Local Lead Generation?

Example 1: A Local Dental Office’s Experience with Google Ads

A dental office in Durham, North Carolina, wanted to increase patient appointments via Google Ads. By targeting keywords like "best dentist in Durham" and "emergency dentist near me," the office was able to achieve a 5.2% conversion rate within the first three months . The cost-per-click was high at $7.80, but the return on investment was significant. The high intent behind the search terms led to qualified leads and eventual conversions.

Example 2: A Local Café’s Experience with Facebook Ads

A small café in Raleigh decided to test out Facebook Ads to bring in more foot traffic. They targeted users aged 18-35 living within a 10-mile radius, focusing on visually enticing ads showcasing their latest menu items. While the CPC was only $0.90, the café found that only 1 in 100 clicks led to a sale . Although the café received a lot of clicks and engagement, the lack of purchase intent made the campaign less effective overall.

Which Platform Should You Choose?

So, who wins—Facebook Ads or Google Ads?

The real answer is neither and both. It depends on your goals and your business model. For high-intent leads with a clear path to purchase, Google Ads may provide better conversion rates, especially for local service-based businesses like law firms, HVAC companies, and dental offices. However, for local businesses that thrive on visual engagement and community building, like restaurants, gyms, or boutiques, Facebook Ads could be the more cost-effective option.

Data-Backed Conclusion: Use Both for Maximum Impact

According to a study by Databox, 62% of marketers believe that using both Facebook and Google Ads together yields the best results . Why? Because they complement each other. Google captures high-intent users searching for a solution, while Facebook builds brand awareness and keeps your business top of mind with its visual, engaging formats.

By leveraging both platforms in tandem, local businesses can create a balanced approach that covers all the bases—reaching potential customers at every stage of the funnel.