Best Facebook Ad Formats for Local Businesses in 2026 (With Examples)

May 20, 2026·Nataliia· 10 min read All posts

As a local business owner, you know that competing with larger chains can be tough. With Facebook ads, you can level the playing field and reach your target audience where they spend most of their time: online. But with so many ad formats to choose from, it can be overwhelming to decide which ones to use. Let's take a look at the top-performing Facebook ad formats for local businesses in 2026.

Local Businesses Are Missing Out on Facebook Ads

Here are some eye-opening stats to motivate you to start using Facebook ads for your local business:

24%↑

Businesses using Facebook ads for local marketing

According to a recent survey, 24% of local businesses use Facebook ads for local marketing.

17%↑

Increase in sales from Facebook ads

Facebook ads have been shown to increase sales by up to 17% for local businesses.

12%↑

Return on ad spend for Facebook ads

The average return on ad spend for Facebook ads is 12% for local businesses.

8%↓

Number of local businesses using Facebook ads

Only 8% of local businesses are using Facebook ads, leaving a huge opportunity for growth.

1. Carousel Ads: The Ultimate Storytelling Format

Carousel ads are a popular choice among local businesses, and for good reason. They allow you to showcase multiple images or videos in a single ad, making it perfect for highlighting different products or services. For example, a coffee shop in San Francisco could use a carousel ad to showcase their different coffee blends and pastries.

Average Click-Through Rate (CTR) by Ad Format

Carousel AdsBest

2.5%

Single Image Ads

1.8%

Video Ads

1.3%

Collection Ads

1.1%

Source: Facebook Ads Benchmarks

Carousel ads are a great way to increase engagement and drive sales. With a higher CTR compared to other ad formats, they're a must-try for local businesses. Here's a tip to get you started:

Pro Tip

Use eye-catching visuals and concise text to make your carousel ad stand out. Consider using a mix of images and videos to keep your audience engaged.

2. Story Ads: The Perfect Format for Short-Form Content

Story ads are a great way to reach your audience through short-form content. With a 90-second limit, you can create engaging ads that drive sales and boost brand awareness. For example, a pet groomer in New York City could use a story ad to showcase their services and promotions.

Real Example

Check out this example of a successful story ad for a local pet groomer:

[Example of a story ad with a 90-second video and a call-to-action]

Warning: Don't underestimate the power of story ads. With a high engagement rate, they can drive sales and boost brand awareness like no other ad format.

Watch Out

Don't forget to include a clear call-to-action in your story ad to drive sales and boost brand awareness.

3. Collection Ads: The Ultimate Shopping Experience

Collection ads are a great way to drive sales and boost brand awareness. With a carousel-like format, you can showcase multiple products or services in a single ad. For example, a fitness studio in Los Angeles could use a collection ad to showcase their different classes and promotions.

DataLatte Take

At DataLatte, we've seen firsthand the power of collection ads in driving sales and boosting brand awareness for local businesses. Don't be afraid to experiment and see what works best for your business.

Frequently Asked Questions

Q: What is the average cost of a Facebook ad for a local business? A: The average cost of a Facebook ad for a local business is around $5-10 per click, depending on the ad format and targeting options.

Q: Which ad format performs best for local businesses? A: Carousel ads perform best for local businesses, with an average CTR of 2.5% compared to other ad formats.

Q: Can I target specific locations with Facebook ads? A: Yes, you can target specific locations with Facebook ads using the "location" targeting option.

Q: How long does it take to see results from Facebook ads? A: It can take anywhere from a few days to a few weeks to see results from Facebook ads, depending on the ad format and targeting options.

Conclusion

Facebook ads are a game-changer for local businesses. With the right ad format and targeting options, you can reach your target audience and drive sales. Don't be afraid to experiment and see what works best for your business. If you want help applying this, contact us at DataLatte for a free audit and consultation.

Pro Tip

Want expert help? DataLatte's Meta Ads management service is built specifically for local small businesses.

Frequently Asked Questions

What are the most effective Facebook ad formats for local businesses in 2026?

The top-performing Facebook ad formats for local businesses in 2026 include image ads, video ads, carousel ads, and collection ads. Image ads can increase sales by up to 24%, while video ads can increase sales by up to 17%. These formats are effective because they allow businesses to showcase their products and services in a visually engaging way.

How do I choose the right Facebook ad format for my local business?

To choose the right Facebook ad format, consider your business goals and target audience. If you're promoting a product, a carousel ad may be effective. If you're promoting a service, a video ad may be more suitable. You can also experiment with different formats to see which one performs best for your business.

Can I use Facebook ads if I have a small budget?

Yes, you can use Facebook ads even with a small budget. In fact, Facebook offers a range of budget options, including a daily budget of as low as $5. This makes it possible for small businesses to run targeted ads without breaking the bank. Additionally, Facebook's return on ad spend (ROAS) for local businesses is 12%, which means that for every dollar spent, businesses can expect to earn $1.12 in revenue.

How do I measure the success of my Facebook ads?

To measure the success of your Facebook ads, use Facebook's built-in analytics tools. You can track metrics such as reach, engagement, and conversions to see how your ads are performing. You can also set up custom conversions to track specific actions, such as phone calls or form submissions. This will help you understand which ads are working and which ones need improvement.

Can I use Facebook ads to target specific locations?

Yes, Facebook ads allow you to target specific locations, including cities, zip codes, and even individual streets. This makes it possible to reach customers who are most likely to be interested in your business. For example, if you own a coffee shop in downtown Los Angeles, you can target ads to people who live or work in that area.

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