UK Performance Marketing: The Ultimate New Business Guide

So, you’ve started a new business in the UK. Congrats! That’s the fun bit done. Now comes the panic of staring at a blank screen wondering how on earth you're going to get customers without bankrupting yourself in the first month. I’ve been there, and I’ve seen enough ad accounts to know that picking the wrong channel is the quickest way to burn through your startup capital.

If you ask a Google Ads agency what the best channel is, they’ll say Google. If you ask a social media agency, they’ll scream "TikTok!" until they're blue in the face. The truth? It depends entirely on what you're selling and who you're selling it to. There is no magic bullet, but there is a right answer for your specific situation.

I’m going to break down the main performance marketing channels available to UK businesses right now, giving you the honest pros, cons, and costs based on real campaigns we’re running. No fluff, just what actually works.

The "Search vs. Scroll" Dilemma

Before we dive into the specific platforms, you need to answer one question: Do people know they have the problem you solve?

If the answer is yes, they are probably typing it into a search engine right now. They are "problem aware". They might be searching for "emergency plumber London" or "accounting software for small business". In this case, you want to be on Google Ads.

If the answer is no, or if they aren't actively looking for a solution at this exact moment, you need to interrupt their day and show them something interesting. This is "demand generation". They are scrolling through their feed looking at photos of their mate's wedding or cat videos. You need to pop up and say, "Hey, look at this cool thing." In this case, you want Meta (Facebook/Instagram) or LinkedIn.

Google Ads: Capturing Intent

Google Ads is usually the safest place to start for service businesses and B2B companies where there is clear intent. If you're a locksmith, nobody is browsing Instagram hoping to see an ad for a lock pick. They are standing outside their house in the rain, frantically googling "locksmith near me". You need to be there.

In the UK, Google Ads can be pricey depending on your niche. In developed countries, the cost per click (CPC) often falls in the £0.5-£1.5 range, though highly competitive terms can be higher. The conversion rates are generally higher here because the intent is high.

However, it's easy to waste money if you aren't careful. I see so many new accounts targeting "broad match" keywords where they show up for completely irrelevant searches. You want to be laser focused on "exact match" or "phrase match" initially. For more detail on this, check out our guide on scaling Google Ads in the UK, which breaks down the specific match types that save you money.

Pros: High intent, faster results, easier to attribute ROI.
Cons: Can be expensive (CPC), limited volume (only so many people searching), requires a good landing page.

Meta Ads (Facebook & Instagram): The Growth Engine

If you are in eCommerce, B2C services, or even B2B with a broad target market, Meta is often the powerhouse for growth. Why? Because you can reach millions of people in the UK for a relatively low cost (CPM - cost per 1000 impressions).

The game here is creative. You aren't just bidding on keywords; you are bidding for attention. Your image or video needs to stop the scroll. I remember one client, a subscription box brand. We ran a campaign for them on Meta Ads and achieved a 1000% Return On Ad Spend. People didn't know they wanted it until they saw it.

For UK startups, this is also a great place to test your product-market fit. If you can't get people to click on an ad for your product on Facebook, you probably have an offer problem, not an ad problem. To really get into the weeds of strategy here, have a read of our guide to scaling ROAS on UK Facebook Ads.

Pros: Massive scale, great for visual products, advanced targeting algorithm.
Cons: Creative fatigue (need to make new ads constantly), attribution is harder since iOS14 updates, lower conversion rate than search.

LinkedIn Ads: The B2B Sniper

Alright, let's talk about the expensive elephant in the room. LinkedIn Ads. If you are selling B2B services or software to enterprise companies, this is where you want to be. The targeting is incredible. You can target by job title, company size, industry—you can literally target "CTOs at Finance companies in London with 50-200 employees".

But—and it's a big but—it is pricey. If you have a low customer lifetime value (LTV), do not go here. You will lose money. I generally tell clients they need an LTV of at least £5k-£10k to make LinkedIn Ads work comfortably.

The strategy here is different too. You rarely sell directly from an ad. You usually offer a "lead magnet"—a whitepaper, a webinar, or a free tool—to get their details, and then your sales team does the work. If you're in the B2B space, you should definitely read about the blueprint for high-quality leads on LinkedIn.

Pros: Perfect targeting for B2B decision makers, professional context.
Cons: Extremely expensive, low CTRs usually, passive audience.

Calculating What You Can Afford

This is where most new business owners mess up. They ask "is £500 a month enough?" without knowing their numbers. You need to know your LTV (Lifetime Value). If a customer pays you £50 a month and stays for 2 years, they are worth £1,200. If your margin is 80%, you have about £960 to play with. Spending £100 to acquire them is a no-brainer.

Use this calculator I built to figure out your own numbers. Be honest with your churn rate!

Budgeting for the UK Market

One thing that catches people out is VAT. Remember, Google and Meta will charge you VAT on top of your ad spend if you are in the UK, unless you are VAT registered and provide your number (in which case it's reverse charged usually, but check with your accountant, I'm just an ads guy!).

For a small business starting out, I rarely recommend spending less than £1,000 - £1,500 per month on media spend. Why? Because you need data. If you spend £10 a day, it might take you three months to get enough clicks to know if your ad is working. If you spend £50 a day, you'll know in two weeks. Time is money. If you are really strapped for cash, you might want to look at founding strategies for your first paid ads to make sure every penny counts.

Common Mistakes to Avoid

I've audited dozens of accounts this year, and the same mistakes keep popping up:

• Tracking isn't set up: You're flying blind. Set up GA4 and your conversion pixels before you spend a penny.
• Targeting "United Kingdom" but only serving locally: If you are a plumber in Bristol, exclude the rest of the UK. You'd be amazed how many people pay for clicks from Scotland for a service in Cornwall.
• Giving up too early: "I spent £50 and got no sales, ads don't work." It takes time for the algorithm to learn.
• Ignoring mobile: 80%+ of your traffic will likely be mobile. If your website looks rubbish on a phone, you are setting money on fire.

Also, don't try to launch on every channel at once. It's a classic error. You'll spread your budget too thin and won't get enough data on any platform to optimise effectively. Pick one, master it, then expand. For a deeper look at this decision process, check out our guide on choosing the right channel for founders.

Your Strategy "Cheat Sheet"

So, which one should you pick? I've summarised my recommendations below based on different business models. This isn't gospel, but it's a solid starting point.

Hopefully, this gives you a clearer picture of where to start. It can be a bit of a minefield, and honestly, sometimes you just need to test things out to see what sticks. But if you start with the channel that aligns best with your customer's behaviour (searching vs. scrolling), you're already ahead of half your competitors.

If you're still scratching your head or you've tried running ads yourself and just ended up donating money to Mark Zuckerberg with nothing to show for it, it might be time to get a second pair of eyes on it. We offer a free initial consultation where we can look at your specific business and tell you straight up if paid ads are a good fit for you or if you should be focusing elsewhere.

Hope this helps!