TLDR;
- Stop asking "Search or Social?" The real question is: "Is my customer problem-aware and searching, or problem-unaware and scrolling?" Your answer dictates your budget split.
- For London businesses, Google Ads is for capturing immediate, high-intent demand (e.g., "emergency plumber in Hackney"). It's expensive but effective if your offer solves an urgent pain.
- Meta Ads (Facebook/Instagram) is for creating demand. It's perfect for visual products, new concepts, and reaching niche London audiences (e.g., tech founders in Shoreditch) before they even know they need you.
- Your platform choice is meaningless if your offer is weak. Most ad campaigns fail because the offer isn't compelling, not because the targeting is wrong. Focus on solving a specific, expensive nightmare for your ideal customer.
- This article includes an interactive calculator to determine your Customer Lifetime Value (LTV), which is the single most important metric for determining a sustainable ad budget in a competitive market like London.
I see this question all the time from London founders. You've got a limited budget, you're in one of the most competitive markets on the planet, and you're being told to be on every platform at once. The typical advice to just "test everything" is a recipe for burning cash fast. The debate between paid search and paid social isn't about which platform is 'better'. It's about understanding the fundamental difference in your customer's mindset on each.
One captures existing demand, the other creates it. Choosing the right one first depends entirely on who you're selling to and what 'nightmare' you're solving for them. Get this wrong, and you're just shouting into the void of the Northern Line at rush hour. Get it right, and you can build a predictable engine for growth right here in the capital.
So, what's the real difference between Google and Meta?
Forget the technical jargon for a second. The core difference is simple intent.
On Google, someone has a problem, and they are actively, consciously searching for a solution *right now*. They're typing "best corporate law firm city of london" or "same-day delivery vegan cakes east london" into a search bar. They have their wallet half-open. This is demand capture. It's like being the best-placed stall in Borough Market – you're catching people who are already there to buy.
On Meta (Facebook & Instagram), people are scrolling through photos of their friends' holidays, watching videos, and generally procrastinating. They are not looking for your B2B SaaS product. They are in a state of discovery. Your job is to interrupt their scrolling with something so relevant to a problem they didn't even know they wanted to solve, that they stop and listen. This is demand creation. It's like putting up a compelling poster on a tube carriage that makes someone realise they have a problem they need to fix. To figure out which channel to prioritise, you need a clear-eyed view on whether you should be capturing or creating demand. Our guide on how to stop wasting money and select the right ad channel goes into more detail on this.
When should a London business go all-in on Google Ads?
You should prioritise Google Ads when your service or product solves a clear, urgent, and well-defined problem that people actively search for. If a pipe bursts in a flat in Kensington, the owner isn't scrolling Instagram for a plumber; they're on Google searching "emergency plumber W8".
This is for you if:
-> You're a service-based business with immediate needs: Think electricians, lawyers, accountants, locksmiths, IT support, cleaning services. The search volume is there, and the intent is sky-high. I remember one campaign we ran for a home cleaning company which got a cost of £5/lead, purely because we targeted people searching for exactly that service.
-> You sell a high-consideration B2B product or service: When a CFO at a Canary Wharf firm needs a new compliance software, her first step is likely a Google search for "fintech compliance software uk". She's in research mode, and you need to be there when she is.
-> You have a niche e-commerce product with clear search terms: Selling "handcrafted leather cycling gloves" is a great fit for Google Shopping and Search ads, as the search terms are very specific.
The big caveat for London is the cost. Competition is fierce. Clicks for desireable keywords like "solicitor london" can be astronomical. This means your website and offer have to be absolutely dialed in. You can't afford to pay £30 for a click just to send someone to a slow, confusing homepage. Every penny has to count, which means having a solid grasp on what your Google Ads budget can actually achieve in the London market is essential.
Here's a simple way to think about it:
Do people wake up and actively search for a solution like yours?
YES
Prioritise Google Ads
NO
Prioritise Meta Ads
And when does Meta become the king of the capital?
Meta is your playground when you need to create demand, not just fulfill it. This is where you find customers who don't know you exist, or don't even know they have the problem you solve. Its power lies in its incredibly granular targeting.
This is for you if:
-> You sell a visually-driven product: Fashion, art, food, cosmetics, home decor. Instagram is basically a digital Bond Street. We helped a women's apparel brand achieve a 691% return on ad spend precisely because their products looked amazing in an Instagram feed. The platform is built for this stuff.
-> Your product is a new concept or an impulse buy: No one was searching for meal-kit delivery boxes before they existed. Companies like HelloFresh used platforms like Facebook to introduce the concept to busy London professionals who didn't know they needed it. If you've created a new category, you have to go out and create your customers.
-> You need to reach a very specific demographic or psychographic: This is Meta's superpower. Want to target people in London who work in finance, are interested in sustainable investing, and live within a 5-mile radius of Canary Wharf? You can do that. It's incredibly powerful for building a highly-specific audience from scratch.
But be warned. The mindset here is passive. You're interrupting them. Your creative and your message have to be incredibly sharp to cut through the noise. A boring ad will be scrolled past in a heartbeat. The key is understanding whether Google or Meta ads align better with your specific business goals and customer journey.
Here's the bit nobody wants to hear: your platform choice doesn't matter if your offer sucks
This is the most common reason campaigns fail, especially in a sophisticated market like London. You can have the most perfectly targeted campaign in the world, but if you send that traffic to a weak offer, you've just wasted your money.
Your Ideal Customer Profile (ICP) isn't "men aged 25-40 in London". That's useless. Your ICP is a specific, urgent, expensive nightmare. Your job is to define that nightmare in excruciating detail.
-> For a legal tech SaaS: The nightmare isn't 'needing document management'. It's 'a junior partner missing a critical filing deadline, exposing the firm to a multi-million-pound malpractice suit and career-ending reputational damage.'
-> For a fractional CFO service: The nightmare isn't 'needing better financial oversight'. It's 'the founder of a promising tech startup based near Old Street lying awake at 3 am, terrified of running out of cash before their next funding round closes.'
Once you understand the nightmare, you can craft a message that speaks directly to it. Your ad, your landing page, and your offer must all be focused on solving that one specific pain point. Everything else is noise.
And for god's sake, delete the "Request a Demo" button. It's the most arrogant, high-friction call to action ever invented. It screams "give me 60 minutes of your time so my sales rep can pitch you". Instead, your offer must provide immediate, undeniable value. A free trial. A free, automated website audit. A free 15-minute strategy session that solves one small problem for them. Give them a taste of the solution for free to earn the right to sell them the whole thing. The best playbook for London founders starts with an irresistable offer, not a massive ad budget.
The Math That Unlocks Growth in London: LTV > CPL
Most businesses obsess over Cost Per Lead (CPL) or Cost Per Acquisition (CPA). They try to get it as low as possible. This is a mistake. It leads to chasing cheap, low-quality leads that never convert. In an expensive market like London, this is a fatal error.
The only metric that truly matters is the ratio between your Customer Lifetime Value (LTV) and your Customer Acquisition Cost (CAC). LTV is the total profit your business makes from a single customer over the entire time they are a customer. Once you know this number, you know exactly how much you can afford to spend to acquire a customer.
Let's do the maths.
Average Revenue Per Account (ARPA): How much a customer pays you per month.
Gross Margin %: Your profit margin.
Monthly Churn Rate: The percentage of customers you lose each month.
The formula is: LTV = (ARPA * Gross Margin %) / Monthly Churn Rate
A healthy business aims for an LTV:CAC ratio of at least 3:1. This means if your LTV is £9,000, you can afford to spend up to £3,000 to acquire that customer. Suddenly that £250 lead from LinkedIn doesn't seem so expensive, does it?
Use the calculator below to figure out your own LTV. It will change how you think about your advertising budget entirely.
The Pro Move: Making Search and Social Work Together
The real experts don't see this as an 'either/or' choice. They see it as a 'which first?' and 'how do they combine?' question. The most powerful advertising strategies use both platforms in concert to move a customer from completely unaware to a loyal advocate.
Here’s a common, effective model:
1. Awareness & Discovery (Meta): You run a video ad campaign on Instagram targeting your ideal customer profile in London. The goal isn't to sell; it's to educate them on the problem (the 'nightmare' we discussed). The call to action is something low-friction, like downloading a free guide or watching a more in-depth video.
2. Consideration & Intent (Google): A few weeks later, that same person realises the severity of their problem. They go to Google and search for a solution. Because you've done your homework, your Google Ad is right there at the top of the page, a familiar name they already recognise from Instagram.
3. Conversion & Retargeting (Both): Once they visit your website from either channel, you can retarget them across both Google's Display Network and Meta. You show them case studies, testimonials, and special offers to get them over the line. This integrated approach is how you dominate a market. If you are a London business wondering which channel to prioritise, Google or Social, the answer is often a strategic combination of both.
This creates a powerful flywheel effect where each platform makes the other more effective.
1. Awareness
Platform: Meta Ads
Goal: Educate on the problem with video/content.
2. Consideration
Platform: Google Ads
Goal: Capture active search intent as they look for solutions.
3. Conversion
Platform: Both (Retargeting)
Goal: Use testimonials & offers to close.
So, what should you do tomorrow?
I've detailed my main recommendations for you below, broken down by common London business types. This isn't gospel, but it's a starting point based on hundreds of campaigns we've run.
| London Business Type | Primary Platform to Start | Why? | Your First Action |
|---|---|---|---|
| Local Service (e.g., Plumber, Solicitor, Consultant) |
Google Ads | Your customers have an urgent, specific need and are actively searching for a local solution. | Set up a Search campaign targeting "near me" and service-specific keywords in your boroughs. |
| B2B SaaS / Tech (e.g., Fintech, Martech) |
Google Ads / LinkedIn Ads | Decision-makers are researching specific solutions to business problems. Capture that high-value intent. | Research keywords your ideal customer would use to describe their 'nightmare'. Build a landing page that speaks directly to that pain. |
| E-commerce (DTC) (e.g., Fashion, Homeware, Gifts) |
Meta Ads (Instagram/Facebook) | Your product is visual and often an impulse or discovery-led purchase. Meta's targeting is perfect for finding your niche audience. | Create a compelling video or carousel ad showcasing your product in action. Target lookalikes of past customers. |
| New Concept / Category (e.g., Innovative App, New Service) |
Meta Ads | Nobody is searching for you yet because they don't know you exist. You must create the market and educate your audience. | Develop a short, educational video ad that explains the problem you solve and introduces your novel solution. |
Ultimately, the choice between search and social isn't a permanent one. It's about where you place your first bet. For many London businesses, navigating this choice and building a strategy that delivers a real return on investment can be daunting. The market is noisy, expensive, and unforgiving of mistakes. This entire decision-making process, from defining the customer nightmare to calculating LTV and building a hybrid funnel, is complex.
If you're feeling overwhelmed or want a second pair of expert eyes on your strategy, it might be worth considering professional help. We offer a free, no-obligation 20-minute strategy session where we can audit your current approach and provide actionable advice tailored specifically to your business and the unique challenges of the London market. Sometimes a brief chat is all it takes to find the clarity you need to move forward with confidence.