Can I use Facebook ads to target local customers?

You’ve got a local business, and you’re wondering if Facebook ads can help you reach customers right in your neighbourhood. Short answer? Absolutely. Facebook’s local targeting capabilities are incredibly sophisticated—perhaps more than you realise. This article will show you exactly how to use Facebook’s location targeting features to connect with customers who are genuinely interested in what you offer and, crucially, close enough to actually visit your business.

Local targeting isn’t just about drawing a circle on a map anymore. Facebook’s algorithms can identify people based on where they live, work, travel, and even where they’ve been recently. You’ll learn how to apply geographic radius settings, tap into behavioural location data, and use advanced targeting options that most local businesses completely overlook.

Here’s what makes this particularly exciting: small businesses often outperform larger competitors on Facebook because they can target with laser precision. While big brands cast wide nets, you can focus on the exact neighbourhood where your ideal customers live and work.

My experience with local Facebook campaigns has taught me that success lies in the details. It’s not enough to simply target “people within 10 miles”—you need to understand how Facebook interprets location data and how to layer different targeting options for maximum impact.

Facebook Local Targeting Fundamentals

Let’s start with the basics, but don’t worry—we’ll get into the juicy stuff soon enough. Facebook’s location targeting operates on multiple levels, each serving different purposes for your local business strategy.

Geographic Radius Settings

The radius setting is your starting point, but it’s trickier than it appears. Facebook allows you to target anywhere from 1 mile to 50 miles around a specific location. However, here’s where it gets interesting: the platform doesn’t just draw a perfect circle and call it a day.

Facebook considers population density, road networks, and natural boundaries when determining who falls within your radius. A 5-mile radius in central London will capture far more people than the same radius in rural Yorkshire—and Facebook knows this.

For most local businesses, I recommend starting with a 10-15 mile radius and adjusting based on your specific industry. Restaurants and cafés should stick closer to 3-7 miles, while service businesses like plumbers or electricians can often extend to 20-25 miles effectively.

But here’s something most businesses miss: you can exclude certain areas within your radius. If you’re a high-end restaurant, you might want to exclude areas with significantly different demographics, even if they’re geographically close.

Location-Based Audience Types

Facebook offers four distinct location targeting options, and understanding the difference can make or break your campaign:

People living in this location targets users whose primary residence is in your specified area. This is perfect for businesses that serve residents—think local gyms, schools, or community services.

People in this location includes anyone currently in the area, including tourists, commuters, and temporary visitors. Restaurants near business districts or tourist attractions should definitely use this option.

People recently in this location captures users who were in your area within the past week but might not be there now. This works brilliantly for businesses wanting to retarget people who visited their area recently.

People traveling in this location specifically targets tourists and business travelers. Hotels, tourist attractions, and upscale restaurants can employ this for important impact.

The magic happens when you combine these options. A coffee shop near a train station might target both people living in the area and people recently in the location to catch both locals and commuters.

Mobile vs Desktop Targeting

Here’s where location targeting gets really sophisticated. Facebook’s mobile location data is incredibly accurate—often within a few metres—while desktop targeting relies more on IP addresses and stated locations.

For local businesses, mobile targeting is usually your best bet. People searching for “pizza near me” or “emergency plumber” are almost always on their phones. Desktop users might be planning ahead or researching, but mobile users are ready to act.

However, don’t completely ignore desktop users. They’re valuable for businesses with longer consideration periods—like home renovation services, wedding venues, or expensive professional services where people research thoroughly before making decisions.

You can actually see this in your Facebook Ads Manager. Create separate ad sets for mobile and desktop, then compare performance. You’ll likely find mobile generates more immediate actions (calls, directions, visits), while desktop drives more website engagement and form submissions.

Advanced Location Targeting Options

Now we’re getting into the good stuff—the targeting options that separate successful local campaigns from mediocre ones. These features aren’t hidden, but they’re not obvious either, and most businesses never explore them.

Custom Location Parameters

Custom locations go far beyond simple radius targeting. You can upload specific addresses, target multiple non-contiguous areas, or even exclude specific postcodes within your broader targeting area.

Let’s say you run a chain of coffee shops. Instead of targeting broad areas around each location, you can upload the exact addresses of your competitors and target people who visit those locations. Sneaky? Perhaps. Effective? Absolutely.

You can also create custom locations based on your existing customer data. Export your customer addresses, upload them to Facebook, and create a “lookalike location audience” of people who live in similar areas to your best customers.

Another powerful approach is targeting specific postcodes rather than radius-based targeting. This works particularly well in areas with diverse demographics where a broad radius might include areas that aren’t suitable for your business.

Behavioural Location Data

This is where Facebook targeting gets almost eerily accurate. The platform tracks not just where people are, but where they go, how often they visit certain types of places, and what their location patterns reveal about their interests and purchasing behaviour.

Facebook knows if someone frequently visits gyms, restaurants, shopping centres, or business districts. You can target people based on their location behaviour patterns—for instance, targeting people who frequently visit shopping centres if you’re a retail business.

According to comprehensive Facebook targeting research, behavioural location data can improve campaign relevance by up to 40% compared to basic geographic targeting alone.

Here’s a practical example: if you run a high-end restaurant, you can target people who frequently visit upscale shopping areas or expensive restaurants. Facebook’s algorithm identifies these patterns and lets you tap into them.

The platform also tracks commuting patterns. You can target people who regularly commute through your area, even if they don’t live there. This is brilliant for businesses located near major transport hubs or busy commuter routes.

Competitor Location Targeting

Let’s talk about something that makes traditional marketers slightly uncomfortable but digital marketers absolutely love: targeting your competitors’ customers directly.

Facebook allows you to target people who have visited specific businesses or types of businesses. You can literally target people who have been to your competitors’ locations in the past 30 days.

But here’s the sophisticated approach: don’t just target direct competitors. Target complementary businesses. If you run a pizza restaurant, target people who visit Italian grocery stores, wine shops, or cooking supply stores. These people clearly have an interest in Italian cuisine and might become your customers.

You can also target people who work in specific areas. This is incredibly powerful for lunch spots, after-work venues, or B2B services. Target people who work in business districts where your ideal customers are employed.

Event-Based Geographic Filters

Event-based targeting combines location data with temporal patterns—targeting people based on where they are at specific times or in response to specific events.

For example, you can target people who are in your area during specific hours (perfect for happy hour promotions), or people who visit your area on weekends versus weekdays (great for distinguishing between locals and visitors).

Weather-based location targeting is another fascinating option. Facebook can identify when people are likely to be indoors or outdoors based on weather patterns in specific locations. A cinema might target people in their area when it’s raining, while an outdoor equipment store might target people when the weather forecast shows sunny weekends ahead.

Seasonal event targeting works brilliantly for local businesses. Target people in your area during local festivals, sports events, or seasonal celebrations. A local pub might target people in the area during major football matches, while a flower shop might target people near wedding venues during wedding season.

Maximising Local Campaign Performance

Understanding targeting options is just the beginning. The real magic happens when you optimise your campaigns for local performance and understand how Facebook’s algorithm responds to local signals.

Audience Layering Strategies

The most successful local Facebook campaigns don’t rely on single targeting criteria—they layer multiple targeting options to create highly specific audience segments.

Start with your geographic base, then add demographic filters, interests, and behaviours that align with your ideal customer profile. A local yoga studio might target women aged 25-45 within 10 miles who are interested in wellness and fitness, and who have visited health food stores recently.

But here’s where it gets sophisticated: create different audience layers for different campaign objectives. Your awareness campaign might use broader targeting to introduce your business to new people, while your conversion campaign uses tighter targeting to reach people most likely to take action.

According to research on local Facebook advertising, businesses using layered targeting strategies see 45% higher conversion rates compared to those using single targeting criteria.

Local Content Optimisation

Your targeting might be perfect, but if your content doesn’t resonate with local audiences, you’re wasting money. Local Facebook ads need to feel genuinely local—not like generic ads with a location stuck on top.

Reference local landmarks, events, or cultural touchstones in your ad copy. Use local vernacular and address specific local challenges or opportunities. A plumbing service in Manchester might reference “Victorian terraced houses” and their specific plumbing challenges, while the same business in a newer development area would focus on different issues.

Visual content should also reflect your local area. Use photos that clearly show your location, include local landmarks, or feature customers who are obviously part of the local community. This builds trust and relevance that generic stock photos simply cannot achieve.

Mobile-First Local Strategies

Local searches are overwhelmingly mobile, and your Facebook strategy needs to reflect this reality. Mobile users have different intent, attention spans, and interaction patterns compared to desktop users.

Your ad creative should be optimised for mobile viewing—large, clear text that’s readable on small screens, and compelling visuals that work in vertical formats. Video content should grab attention within the first three seconds because mobile users scroll quickly.

More importantly, your landing experience needs to be mobile-optimised. If someone clicks your ad on mobile, they should land on a page that loads quickly, displays properly on mobile devices, and makes it easy to take the desired action—whether that’s calling, getting directions, or making a purchase.

Consider using Facebook’s instant experience ads for local campaigns. These full-screen mobile experiences load instantly and keep users within the Facebook ecosystem, often leading to higher engagement rates for local businesses.

Measuring and Optimising Local Performance

Local Facebook campaigns require different metrics and optimisation approaches compared to national campaigns. You’re not just looking at clicks and conversions—you’re measuring real-world business impact.

Location-Specific Analytics

Facebook’s location reporting shows you exactly where your engaged users are located, down to city and postcode level. This data is gold for local businesses because it reveals whether your targeting is actually reaching the right geographic areas.

Look for patterns in your location data. Are you getting engagement from areas you didn’t expect? These might represent expansion opportunities. Conversely, are there dead zones within your targeting area where you’re getting no engagement? You might need to adjust your targeting or investigate local factors affecting performance.

Cross-reference your Facebook location data with your actual customer data. If Facebook shows strong engagement from certain areas but you’re not seeing customers from those areas, there might be barriers preventing conversion—perhaps your location is inconvenient for those areas, or your pricing doesn’t match local expectations.

Seasonal and Event-Based Adjustments

Local markets have rhythms that national campaigns don’t experience. School holidays, local events, weather patterns, and community celebrations all affect how your audience behaves and responds to advertising.

Build seasonal adjustment into your campaign planning. A local restaurant might increase targeting during tourist season, while a B2B service might reduce spending during local holiday periods when decision-makers are away.

Monitor local events and adjust your campaigns for this reason. Major local events can dramatically increase competition for attention and ad space, driving up costs. Conversely, they can also create opportunities if your business is relevant to event attendees.

Weather plays a bigger role in local campaigns than most businesses realise. Restaurants see different demand patterns during rainy weather, retail stores experience changes in foot traffic during extreme temperatures, and service businesses often see emergency calls spike during storms.

Competitive Local Intelligence

Facebook’s Ad Library allows you to see what ads your local competitors are running, but smart local businesses go deeper than just copying what others do.

Analyse your competitors’ targeting by looking at their ad engagement patterns. If their ads are getting high engagement from specific demographic groups or at certain times, this reveals information about their targeting strategy.

But here’s the sophisticated approach: look for gaps in your competitors’ strategies. Are they ignoring certain demographic groups, geographic areas, or types of messaging? These gaps represent opportunities for your business.

Use Facebook’s audience overlap tool to understand how much your targeting overlaps with competitors. High overlap means you’re competing for the same people, which can drive up costs. Look for ways to differentiate your targeting while still reaching your ideal customers.

Integration with Local SEO and Directory Listings

Facebook advertising doesn’t exist in isolation—it works best when integrated with your broader local marketing strategy, particularly local SEO and directory listings.

Cross-Platform Local Signals

Facebook ads can drive traffic to your website, but that traffic needs to convert. Your website should be optimised for local search terms and provide consistent information across all platforms.

Ensure your business name, address, and phone number are identical across Facebook, your website, Google My Business, and directory listings. Inconsistent information confuses both customers and search algorithms, reducing the effectiveness of all your marketing efforts.

Directory listings play a necessary role in local credibility. When potential customers see your Facebook ad, they often research your business further. Having comprehensive, positive directory listings—such as those on jasminedirectory.com—provides social proof and additional touchpoints that support your Facebook advertising efforts.

Local Content Ecosystem

Your Facebook ads should be part of a broader local content strategy that includes your website, blog, social media presence, and directory listings. Consistent messaging and branding across all these touchpoints builds trust and recognition.

Create content that serves your local community beyond just promoting your business. Share local news, support community events, and provide valuable information relevant to your area. This approach builds genuine local engagement that makes your advertising more effective.

User-generated content from local customers is particularly powerful. Encourage customers to share their experiences and feature this content in your Facebook ads. Local testimonials and reviews carry more weight than generic promotional content.

Future Directions

Local Facebook advertising continues evolving as the platform integrates more sophisticated location data, artificial intelligence, and augmented reality features. Understanding these trends helps you prepare for what’s coming next.

Facebook is increasingly integrating real-time location data with purchase intent signals. Soon, you’ll be able to target people who are physically near your location and showing online behaviour indicating they’re ready to buy your type of product or service.

Augmented reality advertising is becoming more accessible for local businesses. Imagine customers being able to virtually “try” your restaurant’s food, see how your furniture looks in their home, or preview your salon services—all through Facebook ads.

The integration between Facebook advertising and local commerce platforms is deepening. Features like Facebook Shops, Instagram Shopping, and WhatsApp Business are creating fluid paths from local discovery to purchase.

Privacy changes are reshaping how location targeting works, but they’re also creating opportunities for businesses that focus on first-party data and genuine customer relationships. The businesses that succeed in the future will be those that use Facebook advertising to build real local communities, not just generate transactions.

Voice search and smart speaker integration are changing how people discover local businesses. Your Facebook advertising strategy should consider how people might find you through voice searches and ensure your business information is optimised for these new discovery methods.

The most successful local businesses will be those that view Facebook advertising as one component of a comprehensive local marketing ecosystem that includes SEO, directory listings, community engagement, and genuine customer service. It’s not about mastering individual tactics—it’s about creating integrated strategies that serve your local community while growing your business.

Start with the fundamentals we’ve covered, test different approaches systematically, and always remember that behind every click and conversion is a real person in your community who has chosen to trust your business with their time and money. That’s a responsibility worth taking seriously.