12 small business advertising ideas

I spent years working with small restaurants and local businesses to help them grow—and, honestly, very few of them needed a huge advertising budget to drive business. Sure, you could invest thousands in paid ads, hire a top-tier advertising agency, and work with influencers to promote your brand. But you don't have to: there are plenty of free or low-cost advertising options that will attract website traffic and in-person visits. 

You might think of advertising as referring only to paid marketing, like newspaper or Google Ads. But other marketing strategies—including ones you don't have to pay for—can be just as effective. So before dropping 5K on Facebook ads, try these 12 free or low-cost ad ideas for small businesses.

1. Claim Google advertising credits 

Google Ads can help you reach your target audience in search results or on other websites through display and search ads. And you can get super specific with it: for example, you could target people who live within 10 miles of your store or folks who search for the items you sell.

The problem, of course, is money. Paid ads can cost quite a bit—and while they usually have a solid return on investment (ROI), it's often too much for a small business to put down up front. 

One solution: Google offers free ad credits to new Google Ads users. Right now, they're offering a couple different promotional deals—including $500 in free ad credits when you spend $500. Many hosting companies will also offer a few hundred dollars in free Google Ads credits. Use these credits to test advertising strategies and see if the ROI makes sense for your business.

Tip: Instead of starting your Google Ads strategy from scratch, see what works for other brands, and steal their strategies.

2. Claim and optimize your Google Business Profile account 

Your Google Business Profile (formerly known as Google My Business) is a completely free tool that lets you manage how your business appears in Google Search results. If you're not sure whether paid search ads are right for you—or if you're working with a really small budget—your Google Business Profile can get you a similar level of exposure for free.

There's a lot you can do with your profile, but these are the basics:

• Fill out all available information, including address, name, phone number, business category, and website. 

• Use key terms people are likely searching for in your description.

• Include images and videos of the inside and outside of your business. 

• Respond professionally to customer reviews. 

Here are a few tips for managing your Google Business Profile through automation.

3. Use micro-audiences to stretch your ad budget  

Yes, spending money on social media ads will help you reach a wider audience, but you don't need to spend hundreds of dollars for each campaign. Platforms like Instagram offer incredibly specific options to help you target micro-audiences. 

Here are some ideas for targeting smaller audiences:

• Custom audiences: Upload your email list, and target only those users. This method is ideal for promoting new products or offering discounts to customers you haven't seen in a while.

• People who are interested in your big competitors: For example, a cake decorator might target people who like Cake Boss or Dairy Queen. 

• A small age range: If your ideal target audience is older or younger, make sure to target only those users.

• A specific location: If you're a local business, target folks within a few miles of your store. If you're an online business, consider an ad campaign targeted to folks in a specific location, so you can still use geographic targeting.

You should also make use of any exclude options, which let you exclude specific audiences, interests, or locations, as well as budget scheduling features, which let you dynamically increase your campaign's daily budget during higher-volume periods.

If you focus your audience to a super-specific niche, you'll decrease your ad spend while only reaching the most relevant users. Start with a small budget—like $10 a day—and build from there.

4. Apply for business awards 

Taking out a traditional ad in a newspaper will probably set you back a few hundred dollars. But there's a good chance your city or industry has a "best of" awards program—and since someone has to win those awards, why not you?

Search online for "Best of [your city]" or "[your industry] awards." Applying is often free or only a few hundred dollars, and it gives your brand both online and print exposure. In local markets, winners are often featured in the local paper or invited to give demonstrations live on local news stations. That's a lot of publicity for the price. 

It's easy to write this off if you're not a local business, but there are awards for every type of business—local or not—from wedding planners to restaurants. There are also cross-industry awards like the Webbys, which recognize online excellence, and the US Search Awards, which recognize the best digital marketing campaigns.    

Use your discretion and don't apply to every available award—otherwise, it'll start to cost some serious cash. Instead, focus on the awards that you think will get you exposure to your target audience.

5. Host classes or events

Hosting classes or events is a great way to get the word out about your business and, depending on how you go about it, pull in some extra revenue. Here are a few examples:

• A social media management company could host a free webinar about an up-and-coming social media platform, with the goal of educating customers and generating new leads. 

• A bakery could host a cookie decorating class and charge a few bucks for kids and parents. When families visit, a display of expertly decorated cakes might encourage them to order a cake for their next event. 

• A clothing store could host a paint-and-sip event, where users paint and drink wine with friends and then peruse the store after. It's $25, but if they buy something, the entry fee is used as a credit toward the item.

Start by deciding what your goal is for the class: do you want to increase brand awareness, drive leads, or actually make a profit? If you're using it for advertising, try keeping the class affordable or free, if possible. 

To increase signups, use established platforms like Airbnb Experiences or online learning platforms like Udemy or Skillshare. That way, you have a built-in audience who can discover your brand, product, or services. You can also use the paid advertising tips above to increase your event signups.   

6. Offer a Groupon deal

I have a love-hate relationship with Groupon. I've enjoyed using them to try new businesses myself, and I've used it to drive foot traffic for clients. But Groupon also tends to attract deal-seekers who have no intention of becoming repeat customers. And if you're not careful with the discount amounts, it can end up costing you money. (Generally, Groupon takes half of your deal, so if you offer yoga classes for $10, Groupon takes $5.)

If you decide to give it a shot, here are a few tips:

• Set a firm expiration date (120 days is usually good). 

• Make it for first-time customers only.  

• Limit the number of deals to one or two per customer. 

• Limit the total number of Groupon deals. This will vary by business size, but setting it at 25-30 total coupons is usually a good start. 

Groupon is ideal for increasing business during slow seasons or building brand awareness—if you're well established, it might not be worth it. 

7. Pitch through Connectively 

Connectively is an online community that connects journalists, PR professionals, and media outlets with expert sources. Those experts can include business owners and industry leaders.

For example, a local reporter might be looking for fun summer camps to include in an article or for a quote about how small businesses are getting ready for the holiday season. You can use Connectively to respond to their pitch, and they'll include your quote or example in their story if it's a good fit. You might even land a backlink in an online publication. It's a great way to get free publicity—and to build credibility within your industry.

8. Send direct mail 

Though you might think it's gone the way of the dodo, direct mail is alive and well. It's more personal—and might give you a better shot at building brand awareness than an email.

As with most marketing, sending snail mail will be even more effective if you segment your audience. For example, after moving to a new house, I received a packet welcoming me to the neighborhood and offering me a discount on blinds and new windows. The ad mentioned my new house, so they were likely tracking public records and targeting new homeowners. In the age of personalization, hyper-relevant ads like this can be incredibly effective.

9. Partner with other local businesses

Advertising is expensive, so why not split the costs? By pairing up with another business, you'll spend less while increasing your reach to a new audience (theirs).

How you structure the partnership will depend on your business, but start by looking for a business with an overlapping audience that isn't a competitor. Here are a few examples: 

• A family restaurant might partner with a bowling alley to promote birthday bowling parties with catering from the restaurant.

• A yoga studio could offer discounted prenatal classes for parents-to-be from a local doctor's office. 

• An HVAC company and an electric company could add each other to a "Trusted partner" page to refer each other for work outside of their scope.  

• A women's eCommerce clothing company could pair with a kids eCommerce clothing company to create a new line of "Mommy and Me" matching clothes—and share the promotional costs. 

Here are more tips on how to use brand partnerships as a growth strategy.

10. Create a newsletter of useful ideas or jobs 

Not all advertising has to look like advertising. Rather than just promoting your business, consider leveraging content marketing by creating an industry-specific newsletter where you share useful resources, strategies, or even job openings with your audience.

One of my favorite examples is from Aleyda Solis, an SEO consultant and speaker. Every week or so, she sends out a roundup of industry news that includes trending topics, new updates in the SEO world, as well as some resources she loves. 

It's useful to me because I stay up to date on industry news, but it also establishes her as an expert in the field. Depending on your business, you might also share local events or job listings. Once you build an audience with your content marketing, you can then use it as another spot to promote your business.

11. Go to local events 

If you're a local business, consider joining local events, either as a sponsor, volunteer, or board member. For example, I recently took my kids to an event, and a local martial arts school had set up a tent and was giving away free (small) cotton candy for the kids. Laid on the table were brochures and signs about their summer camps and classes. Would I have approached the tent if not for the cotton candy? Probably not. But it worked. 

Any kind of local event is fair game: farmers' markets, movies in the park, holiday parades, food festivals, craft fairs, you name it. Just make sure to offer something your audience will want to draw them in. Free swag and sugar usually do the trick. 

12. Make use of your local library

Libraries are one of the few remaining third places that are also totally free to access. They also often function as community hubs that offer classes and connect people to services—so they're a great place to let your community know about what you offer.

For example, if you're a children's clothing shop, consider partnering with your local library to run a clothing drive. Or if you want to host events or classes like I recommended earlier, consider using the library as a venue. And of course, lots of libraries have bulletin boards where you can hang up posters or pamphlets advertising your business.

Low cost doesn't necessarily mean low ROI 

It would be nice to have a million-dollar advertising budget, but scrappiness is a virtue, right? To make your budget go even further, you can optimize your ads with automation, so you can do things like automatically subscribe new leads to your CRM or marketing tools, track conversions, and send emails—while you focus on the creative work. Here are a few examples to get you started.

Read more:

• 17 testimonial advertising examples

• 10 examples of ethos in advertising

• 8 TikTok ads examples to learn from

• 11 native advertising examples to learn from

This article was originally published in June 2022. The most recent update, with contributions from Hannah Herman, was in August 2024.