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Advertising intermediate 45-60 minutes

How to Run TikTok Ads for Local Businesses

Learn how to set up, target, and launch high-performing TikTok ad campaigns to reach local customers in your Australian service area.

Angus 18 January 2026

# How to Run TikTok Ads for Local Businesses

TikTok is no longer just for dance challenges; it has become a powerful search engine and discovery tool for local Australian businesses. With over 8.5 million Australians on the platform, running TikTok ads allows you to reach a highly engaged local audience with authentic, video-first content that builds trust faster than traditional static ads.

Whether you are a plumber in Brisbane, a cafe in Melbourne, or a boutique in Perth, TikTok’s precise location targeting ensures your budget is spent only on the people who can actually visit your store or book your services.

Prerequisites: What You’ll Need Before Starting

Before we dive into the setup, ensure you have the following ready:
  • A TikTok Business Account: If you have a personal one, you can switch it in settings.
  • Your ABN: You will need your Australian Business Number for tax and verification purposes.
  • Vertical Video Content: At least 2-3 videos filmed vertically (9:16 aspect ratio).
  • A Valid Credit Card: For ad spend billing.
  • A Website or Landing Page: Where you want to send your local traffic.

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Step 1: Create Your TikTok Ads Manager Account

Go to ads.tiktok.com and click "Get Started." You will be asked to provide your email or phone number. What you’ll see: A registration form asking for your business name, industry, and time zone.

Pro Tip: Ensure you select (GMT+10:00) Australia/Brisbane (or your local equivalent) as your time zone. You cannot change this later, and it affects how your daily budgets reset and how your data is reported.

Step 2: Set Up Your Business Information & Billing

TikTok requires Australian businesses to verify their identity to prevent fraud. Navigate to Tools > Account Settings > Basic Information.
  • Enter your registered business address.
  • Input your ABN in the tax information section. This ensures you are billed correctly and receive proper tax invoices for your Australian business records.
  • Under Payment Method, link your credit card or PayPal. We recommend starting with "Manual Payment" or "Automatic Payment" depending on your cash flow preference.

Step 3: Install the TikTok Pixel

Even for local businesses, tracking is vital. The Pixel is a piece of code that sits on your website and tells TikTok when someone from an ad actually visits your site or fills out a contact form.
  • Go to Assets > Events.
  • Click Web Events and select Set Up Web Events.
  • Choose TikTok Pixel and follow the prompts to install it (if you use Shopify or WordPress, there are easy one-click integrations).

Step 4: Create a New Campaign

Click the Campaign tab at the top and hit the Create button. You will be asked to choose between "Simplified Mode" or "Custom Mode." Select Custom Mode. It gives you the granular control needed for local targeting.

Step 5: Choose the Right Objective

For local businesses, we generally recommend one of three objectives:
  • Lead Generation: Best for service businesses (plumbers, lawyers, gyms) to collect names and numbers directly within TikTok.
  • Website Conversions: Best if you want people to book an appointment on your site.
  • Traffic: Best for new businesses just trying to get their name out in the local community.

Step 6: Define Your Local Targeting (The Ad Group Level)

This is where the magic happens for local marketing. Scroll down to the Location section.
  • Geography: Click the dropdown and search for "Australia." You can then drill down into specific states (e.g., Queensland) or specific cities (e.g., Brisbane).
  • Radius Targeting: For physical storefronts, you can often drop a pin and target a 10km to 50km radius around your shop.
  • Interests & Behaviours: Don't go too narrow here. TikTok’s algorithm is very smart. If you are a local gym, target "Fitness" interests, but keep the audience size over 50,000 for the best results.

Step 7: Set Your Budget and Schedule

  • Daily Budget: The minimum for most campaigns is $20 per day.
  • Schedule: You can choose to run your ads 24/7 or "Dayparting" to only show ads during your business hours (useful if you want people to call you immediately).

Step 8: Upload Your Creative

Now, upload your video. Screenshot Description: You will see a preview tool on the right side of the screen that shows exactly how your ad will look on a mobile phone. Make sure no important text is covered by the TikTok UI elements (the 'Like' heart and 'Share' icons on the right).
  • Text Overlay: Use captions! Many people watch with sound off initially.
  • Call to Action (CTA): Choose a relevant button like "Book Now," "Learn More," or "Get Quote."

Step 9: Write a Compelling Caption

Your caption should be short and local. Example:* "Looking for the best coffee in South Brisbane? ☕️ Mention this ad for 10% off your first brew! Visit us at [Address]."

Step 10: Review and Publish

Double-check your targeting, your budget, and your video. Click Submit. Your ad will go into a review process (usually takes 2–24 hours) before going live.

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Common Mistakes to Avoid

  • Being Too Corporate: TikTok users hate traditional commercials. Your ad should look like a regular TikTok video—film it on your phone, use trending (commercial-safe) sounds, and be authentic.
  • Broad Targeting: Don't target all of Australia if you only service the Gold Coast. You’ll waste money on clicks from people who can't buy from you.
  • Ignoring the Comments: TikTok is social. If people comment on your ad asking for your location or prices, reply to them!

Troubleshooting Common Issues

  • Ad Not Delivering: Check if your budget is too low or if your audience size is too small (under 10,000 people). Try widening your radius.
  • High Cost Per Click (CPC): This usually means your video isn't engaging. Try a different "hook" (the first 3 seconds of the video).
  • Account Disapproved: Ensure you aren't using copyrighted music. Only use the "Commercial Music Library" provided within the TikTok Ads Manager.

Next Steps

Once your ads are running, let them sit for at least 7 days before making changes. TikTok needs time to "learn" who is most likely to click on your ad.

If you find the technical setup overwhelming or want a professional team to handle your creative production and strategy, we're here to help.

Ready to scale your local reach? Contact the team at Local Marketing Group for a strategy session tailored to your Brisbane business.
TikTok AdsLocal MarketingPaid SocialAustralian Business

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