Advertising options for small business compared
There are more ways to advertise than ever, and most of them will happily take your money whether they work or not. Here's how the main options compare, which suit which businesses, and how to test before you commit a real budget.
In short
- Start with the free options - Google Business Profile, reviews and local directories - before paying for ads.
- Search ads catch people already looking for what you sell; social ads create interest among people who aren't looking yet.
- Local print, radio, outdoor and sponsorship still work for local businesses, but are harder to measure.
- Test every paid channel with a small budget, a clear offer and one number to judge it by.
- Your ads must not mislead. You're responsible for every claim, price and comparison under the Australian Consumer Law.
Before you pay for anything
Some of the most effective “advertising” is free:
- Google Business Profile: complete, accurate, with photos and regular updates. It’s what people see when they search for you or for businesses like yours nearby.
- Reviews: ask every happy customer. See Customer service.
- Your website: clear service pages that answer customers’ questions. See SEO and GEO.
- Free listings: Bing Places, Apple Business Connect, industry associations and reputable local directories.
If these aren’t in place, paid advertising leaks: people see your ad, look you up, and find a thin profile or no reviews.
The options compared
| Option | Best for | Typical cost model | Strengths | Watch out for |
|---|---|---|---|---|
| Search ads (e.g. Google Ads) | Services people actively search for: trades, repairs, legal, health | Pay per click | Reaches people ready to buy; very measurable | Competitive keywords get expensive; needs a good landing page |
| Social media ads (Facebook, Instagram, LinkedIn, TikTok) | Products and services people discover; events; local offers | Pay per click or per thousand views | Precise targeting by area and interests; good for visuals | Easy to spend on likes, not customers |
| Online directories and classifieds | Local services, trades, second-hand goods, jobs | Free, or a monthly listing fee | Cheap; people searching locally | Quality varies widely; avoid directories that exist mainly to sell links |
| Local print (community papers, magazines, letterbox flyers) | Local services, older audiences, community events | Per ad or per thousand flyers | Trusted locally; tangible | Hard to measure; reach is shrinking |
| Radio and podcasts | Building awareness in a region or niche | Per spot, usually in packages | Builds familiarity through repetition | Needs repetition, so budgets add up |
| Outdoor (signs, vehicles, billboards) | Businesses with a location or vehicles on the road | One-off (signs, vehicle wraps) or monthly | Signage and vehicle wraps work for years | Billboards are costly and hard to measure |
| Sponsorship and events | Community-based businesses | Cash or in kind | Goodwill and local relationships | Choose causes your customers care about |
Online directories and classifieds: a local example
Regional sites such as Perthonline.net, a Perth online directory and classifieds site featured on AusBusiness.net in the past, show how local listings can work for small businesses. They put you in front of people looking for services in a specific city. Before paying for any directory listing, check:
- Does it rank in search results for the services and area you care about?
- Can you see real enquiries or traffic numbers, or speak to other advertisers?
- Is it a genuine directory people use, or a site built mainly to sell links? (The second kind can hurt your website rather than help it.)
Search vs social: the key difference
- Search ads meet existing demand. Someone types “emergency plumber Joondalup” and you appear. High intent, often higher cost per click.
- Social ads create demand. Someone scrolling sees your new café’s breakfast special. Lower intent, but cheaper reach and better for things people don’t search for.
Many small businesses do best with a little of both: search for the services people look for, and social for offers, events and showing your work.
How to test a channel without wasting money
- Pick one goal and one number: enquiries, bookings, sales or sign-ups, and what each is worth to you.
- Set a test budget you can afford to lose, and a time limit (for example four weeks).
- Use a clear, specific offer and a dedicated landing page or phone number, so you can tell where results came from.
- Track every enquiry. Ask “how did you hear about us?” and record it.
- Decide at the end: keep, adjust or stop. Then move the budget to what works.
See Measuring marketing for tracking tools.
Staying on the right side of the law
The Australian Consumer Law applies to all advertising, in any medium:
- Don’t mislead. Claims must be true and able to be backed up. “Best in Perth” or “50% off” need evidence.
- Show the full price where you advertise a price, including compulsory fees.
- Comparisons must be fair and accurate if you compare yourself with competitors.
- Testimonials and reviews must be genuine.
- Influencer and sponsored posts must be clearly disclosed as advertising.
You’re responsible for your ads even if an agency or an AI tool wrote them. The ACCC’s advertising and promotions guidance for business covers the details.