Hi there,
Thanks for reaching out!
I've had a look at your question about putting together a paid social media strategy for your business in Derby. Happy to give you some initial thoughts and guidance based on my experience. It's a common problem, and frankly, most local businesses get it wrong and end up wasting a lot of money on social media ads that don't deliver.
The short answer is you're probably looking in the wrong place. For a local business needing actual leads and sales, social media is often not the best place to start. I'll walk you through why that is and what I'd recomend you do instead.
TLDR;
- For a local service business, focusing on paid social media first is usually a mistake. You need to target people with active 'intent' to buy, who are found on Google, not passively scrolling on Facebook.
- Your immediate priority should be Google Search Ads & Local Service Ads. This captures people in Derby actively searching for the services you provide, right when they need them.
- Before spending a single pound on ads, you MUST fix your website and your offer. Your website is your 24/7 salesperson and a poor one will kill your conversion rates.
- The most important piece of advice is to stop thinking about 'cheap leads' and start calculating what a new customer is actually worth to you over their lifetime (LTV). This tells you how much you can afford to spend to get one.
- This letter includes an interactive calculator to help you figure out your customer LTV, and another to estimate a realistic starting ad budget.
We'll need to look at the 'Social Media' trap...
Right, let's get straight to it. The biggest mistake I see local businesses make is jumping straight onto Facebook or Instagram ads because they think it's the only option or because it seems cheap. The problem is fundamental to how these platforms work.
Think about it. When someone is scrolling through Facebook, they're looking at pictures of their mate's holiday, watching funny videos, and catching up on news. They are in a passive, entertainment-focused mindset. Your ad, no matter how clever, is an interruption. You're trying to sell a service to someone who wasn't looking for it. This is called interruption marketing.
When you run a campaign on Meta with an objective like "Reach" or "Brand Awareness," you're essentially telling the algorithm: "find me the cheapest eyeballs possible." The algorithm is very good at its job. It will show your ad to people within your Derby targeting who are least likely to click, engage, or buy anything, because their attention is not in demand and therefore, it's cheap. You are literally paying to reach the worst possible audience for generating immediate sales.
Now, compare that to someone going to Google and typing "emergency plumber in Derby" or "best hairdresser near me." That person has a problem, and they are actively, urgently looking for a solution. They have what we call 'commercial intent'. They want to spend money, right now, to solve their problem. Your job isn't to convince them they have a problem; it's just to convince them you're the best solution for it.
This difference in user intent is everything. Chasing leads on social media for a local service is like trying to sell umbrellas in the desert. You might find a buyer eventually, but it's going to be a long, expensive, and frustrating process. Going after leads on Google is like selling umbrellas in Manchester during a downpour. It's much, much easier.
This user is actively hunting. They have high commercial intent. They are a 'hot' lead, ready to buy or make an enquiry.
I'd say you need to focus on Google Ads first...
So, my number one recommendation is to pause all thoughts of a complex social media strategy for now and focus 100% of your initial advertising budget on Google Ads. Specifically, Google Search Ads and, if your business type is eligible, Google Local Service Ads (LSAs).
LSAs are the listings that appear right at the very top of Google, often with a "Google Guaranteed" badge. They are amazing for local service businesses because you only pay per lead (a phone call or message), not per click. Search ads appear just below them and are also incredibly effective. You bid on keywords that potential customers in Derby are searching for.
What keywords should you target? Think simple and direct.
-> "[Your Service] near me"
-> "[Your Service] in Derby"
-> "Emergency [Your Service]"
-> "Best [Your Service] company"
-> "Cost of [Your Service] in Derbyshire"
The beauty of this is you are putting your business directly in the path of someone who has already raised their hand and said, "I need help with this".
Now, what about costs? This is where you need to be realistic. I've seen a huge range depending on the industry and how competitive the local area is. I remember one campaign we ran for an HVAC company in a competitive city, they were paying around $60 per lead. But we've also managed campaigns for childcare services where signups were only $10 each, and one of our best campaigns was for a home cleaning company that was getting leads for an incredible £5 a pop. A safe bet for most local services would be to budget for something in the £15-£50 per lead range. It could be more, it could be less, but that's a realistic starting point.
The key isn't the cost per lead in isolation; it's what that lead is worth to you. Which brings me to my next point...
You probably should calculate what a customer is worth...
Before you spend a penny, you need to know your numbers. The most important number you can work out is your Customer Lifetime Value (LTV). This simple calculation transforms your thinking from "how can I get the cheapest leads?" to "how much can I confidently afford to spend to aquire a new customer?".
Forget trying to get £1 leads from a worldwide Facebook campaign. That's a fool's errand that will get you lots of junk. You want high-quality leads from your local area, and you should be willing to pay a fair price for them, because you know what they are worth.
Let's break it down for a local service business:
1. Average Initial Job Value (AJV): What's the average revenue from a brand new customer's first job?
2. Gross Margin %: After your direct costs (materials, labour, etc.), what percentage is left as profit?
3. Repeat Business Rate: How many more times does a typical customer use your service in a year?
4. Customer Lifespan (Years): How many years, on average, does a customer stay with you?
With these numbers, you can get a solid estimate of your LTV. Let's try it with an example. Say you're an electrician:
-> AJV = £300
-> Gross Margin = 60%
-> Repeat Business Rate = 0.5 times per year (so one job every two years)
-> Customer Lifespan = 5 years
Your total revenue per customer is £300 (initial job) + (£300 * 0.5 * 4 additional years) = £900.
Your lifetime gross margin (LTV) is £900 * 60% = £540.
Suddenly, paying £40 for a lead doesn't seem so bad, does it? If you convert 1 in 4 leads into a customer, your cost to acquire a customer (CAC) is £160. With an LTV of £540, that's a very healthy 3.3x return. This is the maths that lets you grow your business predictably.
I've built a simple calculator for you below to play around with your own numbers. This is probably the most important bit of homework you can do.
You'll need to fix your website and offer...
Right, so we've established that you need to be on Google, and you know roughly what a customer is worth. The next part of the chain is critical, and it's where most ad campaigns fail. You can have the best ads in the world, but if you send that expensive traffic to a poor website with a weak offer, you are just burning cash.
Your website is your digital shop front and your number one salesperson. It needs to work hard for you. A few things I see on local business websites all teh time that kill conversions:
-> It's slow. People are impatient. If your site takes more than a few seconds to load, especially on a mobile phone, they'll leave.
-> It's not clear what you do or where you do it. Your headline should immediately tell a visitor from Derby that you solve their specific problem in their area.
-> There's no clear Call to Action (CTA). What do you want people to do? Call you? Fill out a form? Your phone number should be huge and clickable at the top. Your "Get a Free Quote" form should be impossible to miss. Don't make people hunt for how to contact you.
-> It doesn't build trust. Why should I trust you over your competitor? You need social proof. This means real customer reviews (with photos if possible), testimonials, logos of any local accreditations (like the Derbyshire Trusted Trader scheme), and photos of your actual team and work. Stock photos scream "we're not a real business".
-> It's not mobile-friendly. Most people searching for local services are doing it on their phones. Your website MUST look great and be easy to use on a small screen.
Getting this stuff right should be your first priority. Don't spend £1 on ads until your website is a lean, mean, lead-generating machine. You'll need a clear offer, too. "Contact Us" is not an offer. A good offer is low-friction and high-value for the customer:
-> "Get a Free, No-Obligation Quote in 24 Hours"
-> "Schedule a Free 15-Minute Consultation"
-> "Claim Your 10% New Customer Discount"
This all goes to say you need to make it as easy and appealing as possible for someone to take that first step. I've mapped out the typical user journey below. Every step is a place where you can lose a potential customer if you don't get it right.
1. Google Search
User searches for "roofer in derby"
2. Clicks Your Ad
Your ad copy was relevant and compelling.
3. Lands on Website
First impression of your business.
4. Takes Action (CTA)
Fills out form or calls you.
5. BECOMES A LEAD!
You recieve their details and follow up.
My main recommendations for you...
Okay, that was a lot of information to take in. To make it easier, I've broken down my advice into a clear, actionable plan. This is the exact process we'd follow to get a local business like yours generating leads and sales profitably.
| Phase | Action Item | Why It's Important |
|---|---|---|
| 1. Foundation | Website & Offer Audit. Ruthlessly analyse your website for speed, trust signals, mobile usability, and a clear call-to-action. Define your primary offer (e.g., Free Quote). | Sending paid traffic to a "leaky bucket" is the fastest way to waste money. This step ensures you convert as much traffic as possible. |
| 2. Customer Acquisition | Launch Google Search Ads. Start with a small, focused campaign targeting 5-10 of your most important "intent" keywords for the Derby area. | This is the most direct way to get in front of people who are actively looking to buy your services right now. It's about capturing existing demand, not creating it. |
| 3. Measurement | Set Up Conversion Tracking. Ensure you are properly tracking every form submission and phone call that comes from your ads. | Without accurate tracking, you're flying blind. You won't know which keywords or ads are working, and you can't possibly optimise your budget effectively. |
| 4. Expansion (Optional) | Launch Meta (Facebook/Instagram) Retargeting Ads. Show simple ads ONLY to people who have recently visited your website from Google but didn't convert. | This is the only way I'd recomend using social media initially. It's a cheap way to stay top-of-mind with a warm audience that has already shown interest. |
| 5. Optimisation | Analyse & Refine. Weekly, review your Google Ads performance. Pause keywords that aren't generating leads, test new ad copy, and re-allocate budget to what's working best. | Paid advertising isn't "set and forget." Constant optimisation is how you lower your cost per lead over time and maximise your return on investment. |
As you can see, a proper social media strategy doesn't even enter the picture until phase 4, and even then, it's in a supporting role, not the main event. This focus on high-intent channels first is how you build a profitable advertising machine for a local business.
Getting this right can be a bit tricky, and it takes time and experience to properly set up tracking, research the right keywords, and write ads that convert. It's not just about setting up an ad and hoping for the best. It’s about understanding the whole system, from the psychology of the customer to the technical details of the ad platforms.
That's where working with a professional can make a huge difference. We do this day in, day out, and can help you avoid the common pitfalls and get you seeing a return on your investment much faster.
If you'd like to chat through your specific situation in more detail, we offer a free, no-obligation initial consultation where we can take a closer look at your business and give you some more tailored advice. Let me know if that's something you'd be interested in.
Hope this helps!
Regards,
Team @ Lukas Holschuh