A business owner’s guide to advertising on Facebook

TL;DR

Facebook advertising lets you create targeted ads across multiple Meta services, including Instagram and WhatsApp, to reach specific audiences based on demographics, online interests, and consumer behaviour. The platform offers a selection of ad types, with costs varying by competition and industry. Success requires clear objectives, quality ad creative, strategic audience targeting, and ongoing optimisation.

Facebook has nearly 3 billion active worldwide users who scroll through their feeds every day…

…That’s a massive opportunity for any business to tap into, offering a vast pool of potential customers in one convenient location through Facebook advertising. However, despite its undeniable potential, many business owners remain uncertain about what Facebook advertising actually is, let alone how to get started.

If you’re one of those business owners, this guide will introduce you to everything Facebook ads. We’ll break things down to see what it entails, how it works, how to create your first campaign, what you'll actually spend, and whether it's worth your time. By its conclusion, we’re sure there’ll be a Facebook advertising strategy that’s perfect for your business.

What is Facebook advertising?

Facebook advertising, also known as Meta advertising, is a paid marketing tool that allows businesses to create targeted ads and display them to specific audiences.

These advertisements are not limited to Facebook; they can be shared across all Meta products, including Instagram and WhatsApp. Meta is the parent company that owns these services and enables adverts to be distributed through the same advertising system.

Why should I advertise on Facebook?

You can use Facebook to advertise for a variety of purposes, including:

• Generating sales and leads.
• Boosting website traffic.
• Increasing social media following.

How does Facebook advertising work?

Unlike many other forms of advertising, where you're just hoping the right people see your message, Facebook ads are precise. They use a huge amount of user data - not just basic demographics, but interests and online behaviours, like what people buy or how long they spend on certain sites. This data helps find the exact people most likely to care about what you're selling.

Facebook ads are like having a magic shop window that only appears to people who are actually interested. Instead of showing your message to everyone passing by, your advert is shown only to people who fit your target audience.

What type of Facebook ads can I run?

Facebook lets you choose from several different ad formats. These choices offer distinct layouts and media types that serve different advertising objectives and meet budget goals.

Here are some of the main types available, along with examples of when they might be used.

Image ads

Static, single-image ads with a headline, short description, and call-to-action. Simple to make, easy to understand. Works great for announcing new products or sharing updates.

Video ads

Video that plays automatically, right in the feed. It can be anywhere from 3 seconds to several minutes. Perfect for telling engaging stories or showing how something works.

Carousel ads

A sequence of images or videos that users swipe through. Ideal for showcasing various products or walking people through a process step by step.

Slideshow ads

Animated ads that are created from multiple images, video, or even text. Suitable for slow internet connections and creates a video-like impact without an actual video.

Stories ads

Full-screen vertical ads in Instagram and Facebook Stories. Usually 5-20 seconds long and designed for mobile to immediately grab attention.

Instant Experience ads

Interactive ads that open on the platform when clicked, rather than redirecting to another page. Used for immersive brand experiences, app downloads, or product showcases.

Event ads

Large banner images to promote attendable events. Users can register directly through Facebook without leaving the platform. Perfect for building attendance and capturing attendee information.

How do I buy Facebook ads?

Facebook offers two primary ad-buying methods: auction-based and reservation-based.

What is auction buying?

When someone opens Facebook or Instagram, the platform looks at who they are and what they care about. Since multiple businesses compete to show ads to that person, Facebook essentially runs a quick auction for that ad space. It doesn't just go to the highest bidder - it chooses the ad most likely actually to work.

Your ad is evaluated and chosen based on three factors:

• How much are you willing to pay for it?
• How effective is your ad (do people engage with it)?
• How probable is that person to do what you want them to do (click, buy, register)?

This means a really well-made ad that people actually want to see can beat someone who spends twice as much. Quality matters as much as budget.

What is reservation buying?

Alternatively, reservation buying lets you book your ad spots in advance at a fixed price. You know precisely what you're paying and when your ads will show. It's reliable and predictable - great for campaigns where you need guaranteed visibility and don't want to compete in the auction system.

How much does Facebook advertising cost?

Facebook charges you in different ways depending on your goal. You pay per click (CPC) - every time someone clicks your ad. You pay per impression (CPM) - per thousand times your ad shows up. Or you pay per result (CPA) - only when someone actually does what you want, like making a purchase.

Which one you use depends on what you're trying to achieve. But whatever model you pick, your actual costs vary based on a few things:

• What you're after: Ads focused on sales cost more than those focused on building awareness, because they're more valuable to your business.

• Who you're targeting: Smaller, more specific audiences usually cost more because they're more likely to actually engage. Huge, broad audiences are cheaper but less effective.

• When you're running them: Competition matters. During busy seasons or when many businesses are advertising, prices tend to rise.

• How much others are bidding: If you're in a competitive industry where everyone wants to reach the same people, costs climb.

The good news? You're in control. Set a daily or monthly budget, and Facebook won't spend more than that. Start small - even £50 a month is enough to test whether it works for you. Scale up once you see results.

Before you launch on Facebook, take advantage of Meta’s built-in forecasting tools in Ads Manager. There isn’t a cost estimator, but the built-in forecasts give you a good idea of expected costs and results based on how you set up your campaign - meaning there are no surprises.

How to advertise on Facebook

In order to start advertising on Facebook, you’ll need to follow these several key steps.

1. Set up your business account

Create a Facebook Business Account separate from your personal one. This gives you access to the tools you need - Ad Manager, analytics, the whole thing.

2. Determine your campaign goal

Before you create anything, decide what success looks like. Whether you're trying to increase awareness, generate leads, or drive traffic to your website, this decision shapes everything that follows.

3. Define your target audience

Use Facebook's tools to narrow down your target audience by age, location, interests, what they buy, what websites they visit - basically anything.

4. Select your ad format

Facebook ads are available in many different formats to help you reach your objectives. These can include images, videos, stories, etc. Choose whatever makes sense for what you're trying to show.

5. Develop engaging content

In a crowded feed, your ad creative must stand out. Use unique, high-quality images or video, write copy that conveys a clear message, and include encouraging call-to-actions to tell people what to do next.

6. Establish your budget

Decide how much you want to spend per day or for the entire campaign. The best part? You can start tiny - even £5 a day can work if your targeting is solid.

7. Monitor and optimise

Lastly, launch it and pay attention to what happens. Track vital metrics such as clicks, conversions, and cost per sale. Then, make adjustments based on performance data to see what's working and what's not.

Does Facebook advertising work?

Facebook advertising works when you know what you want to achieve, understand who you're trying to reach, create ads people actually want to see, and pay attention to what's working. It doesn't work if you set up a campaign and forget about it, or if you're trying to reach literally everyone.

If you're building brand awareness, track how many people see your ads. If you're driving traffic, watch your click rates. If you're after sales, focus on conversions and how much revenue each pound spent generates.

Why Facebook advertising matters for your business

Facebook advertising matters because your customers are already scrolling through it. Billions of people use Facebook every day, and the platform lets you find the exact people most likely to buy from you. You're not guessing or hoping anymore - you know who you're reaching.

You also get complete transparency. You can see exactly where your money went and what it actually achieved. No mystery, no guessing. That makes it way easier to explain your marketing spend to stakeholders and know what to do better next time.

Here's the best part: you don't need a huge budget to compete. A small business with smart targeting and good creative can outperform a big company throwing money at poorly made ads. It levels the playing field. Doing it right matters more than spending the most.

How Campfire can support your Facebook advertising

At Campfire, we help businesses get real results from their Facebook advertising through our comprehensive paid social services. We handle everything from audience research and ad creation to budgets and performance tracking.

But don't just take our word for it. Our work speaks for itself. We've helped businesses across industries transform their Facebook advertising into real growth. See how we've added value for our clients - from increasing engagement and driving conversions to building sustainable customer bases.

And if you're interested in exploring other social platforms, check out our business owner's guide to advertising on TikTok to see how short-form video advertising compares.

Ready to start seeing real results with your Facebook ads? Get in touch with us today.