How to Run Instagram Ads for Local Businesses

Running Instagram ads is one of the most effective ways for Australian small businesses to reach local customers exactly where they spend their time. Whether you’re a cafe in Fortitude Valley or a plumber in Perth, Instagram’s visual nature and precise location targeting allow you to show your services to people who are literally just around the corner.

Why Instagram Ads Matter for Local Businesses

Unlike organic posts that only reach a fraction of your existing followers, Instagram ads allow you to ‘pay to play,’ putting your brand in front of thousands of local residents who haven’t discovered you yet. For local businesses, this means more foot traffic, more enquiries, and a stronger local brand presence without needing a massive national budget.

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Prerequisites: What You’ll Need Before Starting

Before we dive into the steps, ensure you have the following ready:

• A Facebook Business Page: Instagram ads are managed through Meta’s ecosystem.
• An Instagram Professional Account: Ensure your account is set to 'Business' or 'Creator' and linked to your Facebook Page.
• Meta Ads Manager Account: While you can 'Boost' posts, we recommend using Ads Manager for better targeting.
• High-Quality Creative: A clear photo or video of your product/service.
• A Valid Payment Method: An Australian credit card or PayPal account.

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Step 1: Access Meta Ads Manager

While the "Boost Post" button on Instagram is tempting, it lacks the sophisticated local targeting tools you need. Instead, head to adsmanager.facebook.com.

Step 2: Choose Your Campaign Objective

Click the + Create button. You will be asked to choose an objective. For local businesses, the most effective choices are:

• Awareness: Good for brand recognition.
• Traffic: Best for sending people to your website or booking page.
• Lead Generation: Excellent for service-based businesses (e.g., tradies) to collect names and numbers directly in the app.
• Awareness (Store Traffic): Specifically designed for physical locations.

Step 3: Name Your Campaign

Organisation is key to scaling. Use a naming convention that includes the date and the goal. Example: [Oct 2023] _ [Spring Sale] _ [Traffic]*

Step 4: Set Your Daily Budget

Scroll down to the 'Budget' section. You can choose a Daily Budget or a Lifetime Budget.

Step 5: Define Your Local Audience (The Most Important Step!)

This is where the magic happens for local marketing. In the 'Audience' section:

• Location: Click 'Edit' and change 'Australia' to your specific suburb or city.
• Radius: You can drop a pin on your shopfront and set a radius (e.g., 5km to 15km).
• Location Type: Ensure you select "People living in or recently in this location."

Step 6: Refine with Detailed Targeting

Don't go too narrow, or your ad won't deliver. However, adding a few interests can help. If you're a gym, target "Fitness" or "Yoga." If you're a cafe, target "Coffee" or "Brunch."

Step 7: Select Manual Placements

By default, Meta will try to show your ad on Facebook, Messenger, and its Audience Network. To keep this strictly an Instagram guide:

• Select Manual Placements.
• Uncheck everything except Instagram.
• Choose where on Instagram you want to appear (Feed, Stories, or Reels).

Step 8: Create Your Ad (The Creative)

Now you move to the 'Ad' level. Here you will upload your image or video.

• Format: Choose Single Image, Video, or Carousel (great for showing multiple products).

Step 9: Add Your Call to Action (CTA)

Choose a button that matches your goal. "Get Directions" is fantastic for retail shops, while "Book Now" or "Contact Us" works wonders for service providers.

Step 10: Set Up Tracking (The Meta Pixel)

If you are sending traffic to your website, ensure you have the Meta Pixel installed. This allows you to see if the person who clicked your ad actually filled out your contact form. If you haven't done this, it's worth the 10 minutes it takes to set up via your website's header code.

Step 11: Review and Publish

Check your ad preview on the right-hand side to ensure no text is cut off. Ensure your ABN and business details are correctly associated with your payment account to avoid GST issues. Click Publish.

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Common Mistakes to Avoid

• Being Too Broad: Targeting all of Australia when you only service the Gold Coast will waste your budget.
• Ignoring the 'Local' Feel: Ads that look like generic stock photos get scrolled past. Use real photos of your staff, your shop, or your happy customers.
• Forgetting a Call to Action: Don't assume people know what to do. Tell them: "Click the button below to book."
• Not Checking Comments: People will ask questions on your ads. If you don't reply, you lose potential customers.

Troubleshooting Common Issues

• Ad is 'Pending Review' for hours: This is normal. Meta manually and automatically reviews ads. It can take up to 24 hours.
• Audience is 'Too Narrow': If your radius is only 1km and you have 5 interest filters, your ad might not run. Broaden the radius or remove some interests.
• Payment Declined: Ensure your card is enabled for international/online transactions. Meta often bills from Singapore or the USA.
• Low Engagement: If people are seeing the ad but not clicking, your 'Creative' (the image/video) likely isn't grabbing attention. Try a brighter image or a more compelling offer.

Next Steps

Once your ad has been running for 7 days, it's time to look at the data. Check your 'Cost Per Click' (CPC) or 'Cost Per Lead.' If one version of your ad is performing significantly better than the other, turn off the 'loser' and put your budget behind the 'winner.'

Need a hand getting your local targeting just right? Our team at Local Marketing Group helps Brisbane businesses dominate their local area through precision-targeted social media ads.