Facebook Ads vs TikTok Ads for Small Businesses in 2025—Which One Gives You More for Your Money?
This blog is your full guide to finding out which platform offers better ROI, smarter targeting, and stronger engagement. You’ll walk away knowing the real differences in ad performance, costs, creative freedom, and which one suits your business best in 2025—whether you’re selling handmade products or offering local home services.
Let’s face it—advertising online isn’t optional anymore. For small business owners in 2025, it’s a must. But the challenge now is picking the right place to put your limited budget. Facebook and TikTok are two giants—but they couldn’t be more different. One is built on a foundation of data-driven targeting and years of audience behavior. The other thrives on fast-paced, trend-based content and viral energy. Both have their strengths. But the question is: which one delivers better ROI?
If we look at the latest numbers, Meta (Facebook and Instagram) pulled in over $170 billion in global ad revenue in 2024. Meanwhile, TikTok isn’t far behind, with more than $18 billion in ad revenue, marking a 40% growth from the year before. More businesses are leaning into TikTok’s short-form video style, but Facebook still dominates when it comes to detailed targeting and older audiences.
This blog doesn’t just throw stats at you—it breaks them down. You’ll see how much ads really cost, what kind of businesses benefit the most from each platform, how TikTok’s engagement compares to Facebook’s conversion power, and why certain ad formats win more clicks than others. We’ll also dive into common questions like: Which one has a better algorithm for small business marketing? Can I afford to run both?
If you’ve ever wondered where your next customer is scrolling—this blog has your answer. Let’s break it down.
What Are Facebook Ads and TikTok Ads? Explained Simply
Facebook Ads appear on Facebook, Instagram, and Messenger, allowing for detailed audience targeting and multiple ad types. TikTok Ads are short videos that appear in users’ feeds and work best for creative, attention-grabbing content. Both platforms help promote your business, but in different ways.
If you’re new to digital advertising, don’t worry. This section will give you a clear and simple understanding of how Facebook Ads and TikTok Ads actually work in 2025.
Facebook Ads Overview
Facebook Ads are paid messages that appear across Facebook, Instagram, and Messenger to help businesses reach the right people.
As a business owner, you can use them to show your message to a selected group of people.
You have to choose who sees your ads by focusing on things like:
- Age
- Gender
- Location
- Interests
- Online behavior
Facebook offers several ad formats, including:
- Single image ads
- Video ads
- Carousel (slideshow) ads
- Story ads
- Messenger ads
You can set your own daily or lifetime budget and track how your ads perform in real-time. One strong feature is retargeting, which allows you to reach people who already visited your website but didn’t make a purchase.
TikTok Ads Overview
TikTok Ads are short, video-style promotions that appear while users scroll through their feeds. These ads are designed to blend in with regular content, making them less disruptive and more engaging.
Common ad types on TikTok include:
- In-Feed video ads
- TopView ads (first ad on the app)
- Hashtag challenges
- Spark Ads (boosted user content)
These ads are ideal for visual content that is trendy, fun, or storytelling-based.
Who Uses Facebook and TikTok in 2025? Know Your Audience
Before spending money on ads, it’s important to know who you’re actually reaching on each platform. Different people use Facebook and TikTok, and this difference can affect your results.
Facebook’s Audience in 2025
In 2025, Facebook continues to be widely used by:
- Adults aged 30 and older
- Parents and homeowners
- Small business owners and professionals
- People interested in local services, health, finance, and education
This makes Facebook ideal if your product or service targets working adults, mature buyers, or families.
TikTok’s Audience in 2025
TikTok is still dominated by younger users, including:
- Teenagers and college students
- Young adults aged 18 to 29
- Creatives, influencers, and early adopters
It’s perfect for businesses selling trendy clothing, beauty products, lifestyle items, or entertainment services.
Key Differences in User Behavior
- Facebook users tend to read posts, click on articles, and browse with intent.
- TikTok users prefer fast videos, emotional content, and spontaneous discovery.
Facebook is used mostly by adults aged 30 and above, including professionals and parents. TikTok is used more by younger people under 30 who enjoy creative, video-based content. Knowing your audience helps decide where to advertise.

Do Facebook Ads Work for Small Businesses in 2025?
Yes, Facebook Ads absolutely work for small businesses in 2025, and the proof is in both the results and the data.
Why They Still Work:
- Massive Audience
As of 2025, Facebook has over 3 billion monthly active users, with a strong presence among adults aged 30 and above—many of whom are homeowners, professionals, and decision-makers. That’s the sweet spot for local services, e-commerce, and B2C offers.
- Advanced Targeting Tools
Facebook’s ad platform lets you choose exactly who sees your ad. You can target based on age, location, interests, job titles, behavior, and even people who’ve interacted with your website or Instagram.
- Budget-Friendly Options
You can start with as little as $5 per day, making it accessible for businesses with small budgets. You control every dollar, and campaigns can be paused, edited, or scaled easily.
- Proven Conversion Performance
According to 2024–2025 data from Wordstream and Hootsuite, the average conversion rate for Facebook Ads across industries is 9.2%, which is higher than many other platforms. That means it doesn’t just reach people—it gets them to act.
- Real Business Use Cases
Thousands of small businesses—from local bakeries to personal trainers—continue to see success using Facebook Ads for:
- Promoting offers and discounts
- Getting bookings and leads
- Selling products through Facebook Shops
- Retargeting past website visitors
- Smart Retargeting and Reporting
Facebook’s ability to track ad performance and retarget people who didn’t buy the first time gives small businesses a second chance to win the sale—without spending double.
Facebook Ads work extremely well for small businesses in 2025. With precise targeting, low starting costs, and a high average conversion rate (9.2%), small businesses can attract leads, boost sales, and grow with confidence—on nearly any budget.
How Do Small Businesses Advertise on Facebook and TikTok in 2025?
Advertising on Facebook and TikTok is easier than ever in 2025, and both platforms give small businesses tools to launch campaigns without needing a marketing team. Here’s a step-by-step look at how it works on each platform.
Advertising on Facebook
Small businesses can run Facebook Ads using Meta Ads Manager (which covers Facebook and Instagram). Here’s how to start:
- Create a Facebook Business Page
You need a business page to run ads. This acts as your brand profile. - Access Ads Manager
Head over to Meta Ads Manager — it’s your main hub for setting up, launching, and keeping an eye on how your ads are doing.. - Set Your Goal
Choose what you want: more website visits, messages, sales, or lead form signups. - Define Your Audience
Select targeting options like:
- Location (down to zip code)
- Age, gender, interests
- Custom audiences (past visitors, email lists)
- Location (down to zip code)
- Set Your Budget
Start with as little as $5 per day. You control how much to spend. - Create the Ad
Upload an image, video, or carousel. Write a clear message and add a link or call-to-action (CTA). - Launch & Monitor
Review performance daily or weekly. Adjust based on what’s working.
Advertising on TikTok
TikTok runs everything through its TikTok Ads Manager, designed specifically for fun, short videos that grab attention and keep people watching.
- Create a TikTok Business Account
- Open TikTok Ads Manager
- Choose Your Campaign Goal
- Pick Your Audience
TikTok lets you target based on age, interests, location, and even behaviors. - Set Budget & Duration
- Upload or Create a Video Ad
Use vertical, short videos that match TikTok’s natural content style. - Launch & Optimize
You can also boost existing TikTok posts (like a Facebook boost) to turn organic videos into paid ads.
Small businesses advertise on Facebook using Meta Ads Manager to run image or video ads with precise targeting. On TikTok, they use TikTok Ads Manager to launch short-form video ads aimed at younger audiences. Both platforms allow daily budgets starting at $5 and offer step-by-step ad creation tools.
Facebook vs TikTok Ad Performance: Which One Converts Better?
Facebook Ads convert better for direct sales and leads, with higher conversion rates and strong retargeting. TikTok Ads are more affordable and deliver higher engagement, but often need more time to turn views into sales.
When choosing an ad platform, one of the most important things to look at is performance, especially how well the platform can help turn viewers into buyers or leads.
Facebook Ad Performance in 2025
- Average conversion rate: 9–10%
- Click-through rate (CTR): 1.2% on average
- Cost per click (CPC): $0.70 to $1.20
- Strong in retargeting and conversion-focused campaigns
Facebook is great for businesses that want to generate leads, drive sales, or book appointments. It’s also ideal for industries with longer decision-making cycles, like legal services, coaching, and real estate.
TikTok Ad Performance in 2025
- Average conversion rate: 6–7%
- Click-through rate (CTR): 1.5% to 2.5% (generally higher than Facebook)
- Cost per click (CPC): $0.30 to $0.80
- Effective for brand awareness and viral content
TikTok’s strength lies in creating fast visibility and engaging a wide audience. It may not convert as quickly, but it builds interest and trust over time—especially with creative storytelling.
Choosing Based on Your Goals
- For direct results like sales or leads: Facebook may be the better choice.
- For exposure, branding, and trend-based campaigns: TikTok may outperform.

Facebook and TikTok Ad Costs in 2025: What’s More Budget-Friendly?
Facebook Ads typically cost $0.70 to $1.20 per click and work well for targeted campaigns and retargeting. TikTok Ads are cheaper at $0.30 to $0.80 per click, making them great for low-budget exposure. Choose based on your goal—sales vs. reach.
Understanding ad costs helps you make smart decisions—especially when working with limited funds. Here’s a clear breakdown of what you can expect to spend on both platforms in 2025.
Facebook Ad Costs
- Cost per click (CPC): $0.70 to $1.20
- Cost per 1,000 impressions (CPM): $6 to $12
- Daily budget: Starts from as low as $5
- Better for: Scalable campaigns, steady returns, retargeting
Facebook gives you full control over how your money is spent. You can adjust the budget, schedule your ads, and track detailed reports.
TikTok Ad Costs
- Cost per click (CPC): $0.30 to $0.80
- Cost per 1,000 impressions (CPM): $4 to $8
- Daily budget: Can start as low as $3
- Better for: Affordable reach, creative storytelling, younger audiences
TikTok tends to be cheaper per click or view, but you may need to invest in quality videos to stand out. Basic visuals often underperform.
Which Is More Cost-Effective?
- TikTok is better for low-cost testing and brand awareness.
- Facebook is more efficient for campaigns focused on returns and long-term results.
What Kind of Ads Work Best on Facebook and TikTok?
Facebook ads that perform best include product videos, customer reviews, and image ads with clear messages. TikTok ads work best when they are short, creative, and feel like natural content—such as behind-the-scenes clips or fun trends.
Understanding the type of content that works best on each platform can save you time and money. Not all ads perform equally well on Facebook and TikTok because users interact differently on both.
Best-Performing Facebook Ad Types
Facebook users respond well to:
- Product showcase videos
- Image ads with clear offers
- Customer testimonials
- Special discounts or deals
- Educational content (how-to posts or short guides)
Professional-looking content works best here. Ads that solve problems or show real benefits often bring the most clicks. Story ads and carousel formats also perform well when you want to show multiple items or features.
Best-Performing TikTok Ad Types
TikTok is more casual and entertainment-driven. Ads that work here include:
- Behind-the-scenes videos
- Trending sounds or challenges
- User-generated content (real people using your product)
- Fast, short storytelling (less than 15 seconds)
- Relatable content that feels natural
Polished ads with corporate tones don’t do well. Instead, TikTok rewards creativity, humor, and realness. Think of your ad like a fun short clip, not a commercial.
Creative Tips
- On Facebook: Focus on clarity, benefits, and trust.
- On TikTok: Focus on story, emotion, and personality.
Video Ads vs Image Ads: Which Performs Better in 2025?
In 2025, video ads generally perform better than image ads on both Facebook and TikTok, especially for engagement and conversions. However, image ads are still effective for local, static offers or quick promos. The best results often come from testing both formats.
If you’re running ads on Facebook or TikTok, one of the most common questions is: Should I use video or image ads? The answer depends on your goal—but here’s what’s working best in 2025.
Video Ads
Why they perform better:
- Capture more attention in a crowded feed
- Give people a real look at how your product fits into everyday life and solves real problems.
- They’re a great fit for mobile users — and let’s face it, that’s pretty much everyone these days.
- Platforms like TikTok are video-first—image ads aren’t even supported in the main feed
Best for:
- Demonstrating products
- Telling a story or process
- Engaging younger audiences
According to 2025 ad performance data, video ads get up to 3x more engagement than static images on TikTok and up to 2x more conversions on Facebook when used with clear messaging and a strong call to action.
Image Ads
Why they still matter:
- Quick to create and low cost
- Work well for simple offers, event promos, or local awareness
- Easier to run for non-video-heavy brands
Best for:
- Static promotions, sales, or store visits
- Retargeting campaigns
- Local service providers
How Each Platform Supports the Sales Funnel
Facebook supports the full sales funnel—awareness, interest, and conversion—using detailed targeting and retargeting tools. TikTok is strongest at building awareness and engagement but may need support from other platforms to drive final sales.
Ads don’t always lead to a sale right away. Often, customers go through a few steps before buying. This journey is often called a sales funnel—it starts with people discovering you, then getting interested, and finally taking action.
Let’s see how Facebook and TikTok help at each stage.
Facebook Ads and the Full Funnel
Facebook is strong at every step of the sales process.
- Top of funnel (awareness): You can target new people by interests, location, or behavior.
- Middle of funnel (interest): Reconnect with people who’ve already shown interest by visiting your site or clicking on your previous ads.
- Bottom of funnel (action): Use lead forms, website conversion ads, or messaging tools to close the deal.
With detailed targeting and retargeting tools, Facebook helps move people from just browsing to becoming buyers.
TikTok Ads and the Funnel
TikTok works best for grabbing attention and getting your brand noticed at the very start of the customer journey.
- Top of funnel (awareness): Viral videos and trends help get attention fast.
- Middle of funnel: Some tools like Spark Ads help retarget viewers of past content.
- Bottom of funnel: Limited tools for direct conversions unless you’re using landing pages or influencers.
TikTok is great for creating curiosity, but you’ll often need another platform to help close the sale.

Real-Life Results: Small Business Success Stories
Facebook ads help small businesses drive consistent leads and sales using targeted campaigns. TikTok ads help brands go viral and reach new audiences quickly through creative, short-form videos.
Sometimes, the easiest way to understand something is by seeing how it’s done in real life.
Here’s how small businesses are seeing results from both Facebook and TikTok ads in 2025.
Small Business Wins with Facebook Ads
- Local bakery in Texas: Used Facebook’s carousel ads to show daily specials. Within a month, online orders went up 35%.
- Freelance fitness coach: Ran video ads targeting people in a 10-mile radius. Gained 80 new clients in three months.
- Handmade jewelry shop: Used retargeting to follow up with visitors. Made 3x returns on ad spend in a single week.
These examples show that Facebook works well for steady, results-driven campaigns—especially for local businesses or service providers.
Small Business Wins with TikTok Ads
- Skincare brand: Created fun, 15-second videos using trending sounds. One video hit 100k views, leading to a 50% spike in sales that week.
- Streetwear startup: Used a simple “packaging order” video. It went viral and brought in over 1,000 new customers.
- Café in Florida: Showed behind-the-scenes clips of drink-making. Built a following and saw a 40% increase in walk-ins.
TikTok works well when content feels real and fun, especially for products that show well on video.
How Facebook and TikTok Choose Who Sees Your Ad
Facebook shows your ad based on detailed user data and behavior, making it ideal for targeting specific people. TikTok shows your ad based on how well people engage with it, helping creative content reach large audiences quickly.
Behind the scenes, both platforms use systems to decide who sees your ad. Understanding how these work helps you get better results.
Facebook’s Ad Delivery System
Facebook uses detailed data about users to match your ad with the right people. It considers:
- Age, gender, and interests
- Pages liked and content viewed
- Recent online activity
- Engagement with your previous ads
It also learns over time. As your ad runs, Facebook tests different groups and automatically shows it to the people most likely to respond.
This system is strong for sales-focused ads and makes Facebook ideal for small businesses that need results without wasting money.
TikTok’s Ad Delivery System
TikTok focuses more on content style. It starts by sharing your video with a small group of viewers to see how they react. If people watch it, like it, or share it, TikTok will keep showing it to more people.
The algorithm doesn’t rely much on past activity or personal data. Instead, it rewards creative, engaging videos regardless of who made them.
This makes TikTok great for new businesses or brands trying to go viral quickly, even with small budgets.
Ad Policies and Data Rules on Facebook and TikTok
Facebook has stricter ad policies and checks both your content and landing pages. TikTok focuses more on video content safety and realistic claims. To run ads smoothly, follow each platform’s guidelines and be clear about how you collect user data.
When running ads, it’s important to follow the rules set by the platform. Both Facebook and TikTok have their own ad policies, and understanding these can help you avoid having your ads rejected—or worse, your account disabled.
Facebook Ad Rules
Facebook has been around longer, so its ad rules are more detailed. It doesn’t allow:
- Misleading claims (like fake health promises)
- Sensitive content (politics, personal traits, medical conditions)
- Before-and-after images (especially in health/fitness)
- Ads for adult content or weapons
It also checks your landing pages. If your website is slow, has too many pop-ups, or looks spammy, your ad may be rejected. Facebook reviews ads using both automated tools and real people to make sure they follow the rules.
For data privacy, Facebook tracks user behavior, so you must be clear about what data you’re collecting. Make sure your website has a privacy policy if you’re collecting emails or personal info.
TikTok Ad Rules
TikTok also follows strict advertising rules, particularly when it comes to:
- Unsafe challenges or dangerous behavior
- Claims that sound unrealistic or exaggerated
- Adult or violent content
- Finance-related ads with no clear source
TikTok reviews every video carefully, especially if it looks like it’s targeting young audiences. Ads should come across as friendly, enjoyable, and respectful to everyone who sees them.
Also, if you’re collecting customer data through TikTok, your landing page must clearly state what you’re doing with it.
Which Platform is Better for Your Small Business in 2025?
Now that you’ve seen the full comparison, let’s answer the big question: should you use Facebook Ads or TikTok Ads for your small business? The best choice depends on your audience, goals, and type of product or service.
Choose Facebook If:
- Your target audience is aged 30 or above
- You offer services that need trust (e.g., healthcare, finance, coaching)
- You want detailed control over your ad spend and who sees it
- You plan to retarget users and drive consistent leads or sales
Facebook is strong in conversions, especially for businesses that sell high-value services, local solutions, or items that people don’t buy on impulse.
Choose TikTok If:
- Your product or service appeals to younger people (ages 16 to 30)
- You sell trendy items like fashion, beauty, or tech accessories
- You want fast reach and brand awareness with low costs
- You can create fun, natural video content that feels real
TikTok is powerful for building quick buzz and reaching a wide audience with a small budget. It’s great for getting noticed fast, but may need help from your website or email list to convert those views into real customers.
What If You Use Both?
Many businesses use Facebook for sales and TikTok for reach. TikTok builds awareness. Facebook converts that attention into action.
Use Facebook Ads if your goal is conversions and your audience is 30+. Use TikTok Ads if you’re targeting younger people and want quick attention with creative videos. For best results, many businesses use both: TikTok for awareness, Facebook for sales.
Facebook Ads Reach vs TikTok Ads Reach (2025)
Reach is all about how many people can see your ad—and on the internet, not all reach is created equal. Facebook and TikTok both have large audiences, but they work differently when it comes to how your ad spreads.
Facebook Ads Reach
Facebook gives you access to a mature, global network that includes Facebook itself, Instagram, Messenger, and Audience Network. That’s billions of users.
How Facebook Reach Works:
- You choose your audience based on location, age, job, interests, and more.
- Facebook shows your ad to the exact people most likely to engage.
- You pay more for narrow targeting but reach users with higher intent.
Best for:
- Targeting local or niche groups
- Reaching people already interested in your offer
- Consistent, controlled ad visibility
TikTok Ads Reach
TikTok has a younger, fast-moving user base. What’s unique is that even small brands can go viral overnight.
How TikTok Reach Works:
- Ads appear in the main content feed (For You page)
- You can reach millions fast if the video performs well
- The platform rewards creativity, not brand size
Best for:
- Reaching new audiences
- Promoting visually interesting or trendy products
- Going viral with creative videos
Facebook offers controlled, targeted reach across a broad network, ideal for precision. TikTok provides fast, viral reach, especially for creative, short-form content. Both platforms can reach millions—Facebook with structure, TikTok with momentum.
ROI Comparison: Facebook Ads vs TikTok Ads
Return on Investment (ROI) is one of the most important metrics for any business spending money on ads. While we’ve touched on ROI indirectly in earlier sections like ad performance, cost breakdowns, and platform strengths—we haven’t given ROI its own clear spotlight. So here’s a focused comparison to wrap up that missing piece.
Facebook Ads ROI in 2025
Facebook remains a strong performer when it comes to ROI, especially for small businesses looking for sales, bookings, or lead generation. Its detailed targeting and retargeting tools help you spend wisely by showing ads to people most likely to act.
Why Facebook delivers strong ROI:
- Conversion-focused tools (lead forms, purchase tracking, etc.)
- Retargeting past visitors increases chances of conversion
- A/B testing and analytics improve performance over time
- Higher conversion rates (9–10% average for small businesses)
Best ROI potential:
- Local service providers
- Online courses or consulting
- E-commerce stores with mid/high-ticket products
TikTok Ads ROI in 2025
TikTok offers great value in terms of reach and awareness, especially for lower budgets. While its direct conversions can be lower than Facebook, TikTok excels at pulling people into the top of your marketing funnel.
Why TikTok ROI may differ:
- Lower CPCs and CPMs simply mean you can reach more people without stretching your budget.
- Ideal for brand discovery and viral exposure
- Needs strong creative to generate sales
- Conversion rates average around 6–7%
Best ROI potential:
- Trendy products (fashion, beauty, lifestyle)
- Brands targeting younger audiences
- Businesses with strong visual content
Facebook Ads generally offer better ROI for sales and leads due to precise targeting and retargeting. TikTok Ads provide high visibility at lower costs but may require more effort to turn views into conversions. Both platforms offer strong ROI when used with the right strategy.
The Future of Paid Ads for Small Businesses
In 2025, Facebook is ideal for sales and targeting, while TikTok is better for awareness and reach. The best strategy for small businesses is often a blend: use TikTok to attract attention and Facebook to convert that attention into real customers.
If you’re a small business in 2025, digital ads are no longer optional, they’re essential. With all the platforms out there, picking the one that truly fits your goals can feel a bit confusing or even overwhelming. This guide has compared Facebook Ads and TikTok Ads in terms of audience, cost, performance, and policy. So what’s the final word?
Summary of Key Comparisons
- Facebook Ads offer stronger targeting, better tools for retargeting, and a high return on investment if your goal is direct leads or sales.
- TikTok Ads are more affordable, fast-moving, and ideal for building awareness among younger audiences with creative video content.
- Facebook works better for structured campaigns. TikTok shines in quick outreach and emotional connection.
Advice for Small Budgets
If you’re starting small:
- Begin with TikTok to build buzz with a few low-cost videos.
- Then move to Facebook when you’re ready to convert viewers into paying customers.
- Use Facebook for follow-ups and retargeting.
- Track your results weekly to see what’s working—then shift budget accordingly.
You don’t need big money to see real results. You just need the right message, placed on the right platform, shown to the right people.
Future Trends: A Blended Strategy
The future of advertising is not about choosing just one platform. It’s about combining the strengths of both.
- Use TikTok for discovery and reach.
- Use Facebook for trust and conversions.
- Add email marketing or landing pages to complete your funnel.
As platforms keep evolving, so should your strategy.
Ready to Grow? Let Local City Solutions Help You Win with Ads
Navigating digital ads can feel complicated especially when your time and money are limited. You don’t have to navigate it all by yourself, support and guidance are always within reach.
At Local City Solutions, we specialize in helping small businesses like yours get real results from Facebook Ads, TikTok Ads, and blended strategies that actually convert. Whether you’re launching your first campaign or need help scaling your current ads, our team is ready to support you with tailored strategies that fit your budget and business goals.
Here’s how we can help:
- Build and manage your Facebook or TikTok ad campaigns from scratch
- Create engaging content that speaks directly to your audience
- Monitor results weekly and make smart budget adjustments
- Keep your campaigns compliant with all platform policies
We believe in clear communication, honest pricing, and strategies that bring real returns—not empty promises.
If you’re serious about growing your business online in 2025, now is the time to take action.
Reach out to Local City Solutions today and let’s talk about how we can boost your visibility, generate quality leads, and turn your ads into steady business growth.
Your customers are scrolling right now—let’s make sure they find you.