Facebook Ads vs Google Ads for Local Service Businesses: Which Should You Use?

If you’re a small business owner in Australia, you’ve probably heard both “use Google Ads” and “use Facebook Ads.” But they’re completely different tools solving different problems, and picking the right one (or both) depends on your business type.

Let me break down the real differences and show you which one makes sense for you.

The Core Difference

Google Ads shows your ad to people actively searching for what you do.
Facebook Ads shows your ad to people based on their interests, behaviors, and demographics-whether or not they’re searching.

Example:

Someone searches “plumber near me” on Google → Google Ads shows your ad → High intent, they’re actively looking

Someone scrolling Facebook sees your plumbing ad because they fit your target audience (homeowner, Sydney, age 35–55) → Facebook Ads → Lower immediate intent, but you’re reaching your ideal customer anyway

Cost Comparison

Google Ads average CPC: $3–$15 AUD (tradies and local services)
Facebook Ads average CPC: $0.50–$3 AUD (often 50–70% cheaper than Google, but lower intent)

But cheaper doesn’t mean better. Cheap clicks that don’t convert are wasted money.

Cost per lead is what matters, not cost per click.

Targeting Capabilities

Google Ads targeting:

• Keywords (what people search for)
• Location (city, suburb, postcode)
• Device type (mobile, desktop)
• Time of day
• Audience remarketing (people who’ve visited your site)

Facebook Ads targeting:

• Interests (e.g., “home improvement,” “interior design”)
• Behaviors (e.g., “likely to move home,” “engaged shoppers”)
• Demographics (age, gender, family status)
• Lookalike audiences (similar to your existing customers)
• Custom audiences (your email list, website visitors)

Winner for local services: Google Ads, because you can target by keyword and location precisely.

Lead Quality and Conversion Rate

This is where it matters most.

Google Ads leads:

• Person searched for your service actively
• They know what they want (or at least think they do)
• Higher intent = faster decision-making
• Typical conversion rate: 5–15% of leads to customers

Facebook Ads leads:

• Person saw your ad while scrolling, clicked out of interest
• They might not be actively looking yet
• Lower immediate intent = longer sales cycle
• Typical conversion rate: 2–5% of leads to customers

Real impact:

Google Ads: 50 clicks, 5 leads, 1 customer = 20% conversion rate from leads
Facebook Ads: 100 clicks, 8 leads, 1 customer = 12.5% conversion rate from leads

Google Ads got a customer faster with fewer clicks. But Facebook Ads reached more people and can build brand awareness over time.

When to Use Google Ads (and ONLY Google Ads)

Use Google Ads if:

• You want immediate, high-intent leads
• Your target audience searches for you on Google (plumber, electrician, accountant, web designer, etc.)
• You operate in a specific geography and want to dominate local search
• You need lead volume quickly
• Your sales cycle is short (days to weeks)

Service businesses that do well on Google Ads:

• Tradies (plumbers, electricians, builders, carpenters)
• Professional services (accountants, lawyers, tax agents)
• Home services (cleaners, landscapers, pest control)
• Repair services (auto repair, appliance repair)

When to Use Facebook Ads (and ONLY Facebook Ads)

Use Facebook Ads if:

• You have a visual product or service that shines in photos/videos
• You want to build brand awareness and reach your ideal demographic
• You want to retarget people who’ve already visited your website
• Your sales cycle is longer and you want to nurture leads over time

Types of businesses that do well on Facebook Ads:

• Visual services (interior design, photography, beauty, fashion)
• E-commerce and retail
• Online courses and memberships
• B2C brands (where brand awareness matters)
• Real estate

When to Use BOTH

The most sophisticated small business approach is using both, but for different purposes:

Google Ads = Lead generation (people actively searching)
Facebook Ads = Awareness + Retargeting (people who showed interest)

Example strategy for a tradie:

1. Run Google Ads to capture people searching “plumber near me” → Get leads
2. Run Facebook Ads retargeting to people who visited your website but didn’t enquire → Re-engage them
3. Run Facebook Ads lookalike to your best customers → Find similar people

This gives you leads from Google Ads plus brand frequency from Facebook.

Cost-Benefit Analysis: Google vs Facebook

The Real Talk: For Local Service Businesses

If I had to pick ONE platform for an Australian tradie, cleaner, accountant, or local service business starting out, it’s Google Ads, because:

1. You’ll reach people actively searching for you
2. Lead quality is typically higher
3. Geographic targeting is more precise
4. ROI is more predictable (especially in months 1–3)

Facebook Ads is amazing for awareness and retargeting, but if you only have $2,000/month and you’re a local service, spend it on Google Ads first.

Once Google Ads is working and profitable, then add Facebook Ads retargeting to existing website visitors.

How to Decide for Your Business

Ask yourself:

1. Do people search Google for my service? (Plumber, dentist, accountant = YES. Premium candles = NO)
2. Is my business local or online? (Local = Google Ads. Online = Could be either)
3. What’s my average sales cycle? (Days to weeks = Google. Weeks to months = Facebook)
4. Do I have an existing audience? (Existing email list or website visitors = Facebook retargeting works. New business = Google Ads)
5. What’s my budget? (Under $2,500/month = Pick one, I’d pick Google. Over $5,000/month = Test both)

The Hybrid Approach (Best for Most Small Businesses)

Month 1–2:
Run Google Ads only ($1,500–$2,000/month) to capture active search intent and build data.

Month 3+:
Keep Google Ads running, add a small Facebook Ads retargeting budget ($500/month) to people who visited your site but didn’t convert.

This gives you lead volume from Google and second-touch brand frequency from Facebook without overcomplicating things.

Common Mistakes

Mistake 1: Running both platforms equally from day one.
Focus on one, master it, then add the second. Splitting attention = splitting results.

Mistake 2: Expecting Facebook Ads to work like Google Ads.
They’re different tools. Facebook is longer-term awareness; Google is immediate intent.

Mistake 3: Spending $5,000/month on Facebook when your market is mostly on Google.
Tradies = Google. Beauty salons = Could be Facebook. Know where your customers actually are.

Mistake 4: Using Facebook Ads without retargeting.
If you’re running Facebook Ads to cold audiences, you’re paying for awareness, not leads. Use it for retargeting warm website visitors to start, or in combination with cold audiences to capture intent.

Bottom Line

For Australian local service businesses:

• Start with Google Ads. You’ll get faster leads and clearer ROI.
• Add Facebook Ads retargeting once Google is working. You’ll increase conversion from people who already know about you.
• Test, track, and scale what works. Whichever platform gives you cheaper, better-quality leads is the one to scale.

Don’t choose based on what you think is “trendy.” Choose based on where your customers actually are and what moves them to action.

If you’re working out how much you need to spend on advertising, check out our handy budgeting guide for small businesses.

Not sure which platform is right for your business? Let’s discuss your options — I can help you pick the best starting point.