How to Advertise Your Business: Free and Paid Options Compared

By EODIGO Editorial · Updated October 1, 2026

Short answer: Start with free channels: Google Business Profile, other free listings, reviews, social media, and email. Once those are complete, test one paid option, like Google Ads or Facebook ads, with a small monthly budget. Track calls, direction requests, and ask new customers how they heard about you. Keep what works and drop what doesn't.

In this guide

1. Free first, then test paid
2. 12 ways to advertise your business, compared
3. The free methods in plain words
4. Getting a feel for paid advertising costs
5. Which paid option fits your business?
6. Recommended mixes for $0, $100, and $500 a month
7. How to measure what's working
8. 5 advertising mistakes to avoid
9. Tourist-area businesses: reach travelers before the trip

Free first, then test paid

Many owners jump straight to ads. That can waste money. If someone sees your ad, then looks you up and finds old hours or no reviews, they may go somewhere else.

So build the base first. Make sure your free listings are complete, your reviews are recent, and your phone gets answered. Our guide to free business listing sites shows where to start.

Then treat paid ads as a test. Pick one channel, set a small budget, run it for about a month, and look at the numbers. There is no guarantee any ad will bring customers, so start small and learn.

A good order for most small business advertising: listings first, then reviews, then social posts and email, then one paid test. Each step makes the next one work better, because people who see your ad will find a business that looks active and trusted.

12 ways to advertise your business, compared

Here are 12 common local business advertising options. Cost and speed are general ranges, not promises. Your results depend on your area, your offer, and how much competition you have.

The free methods in plain words

1. Free online listingsClaim your business on Google, Apple Maps, Bing, Yelp, and Facebook. Use the same name, address, and phone everywhere.
2. Google Business ProfileGoogle says listing your business on Google is free. Add photos, hours, services, and weekly posts. See our Google Business Profile guide.
3. Social mediaPost real photos of your work, your team, and your space. Two or three good posts a week beat ten rushed ones.
4. ReviewsAsk happy customers to leave an honest review. Google's rules allow asking for genuine reviews, but not paying or giving discounts for them. More in our local SEO and reviews guide.
5. EmailCollect emails at checkout, with permission. Send a short note once or twice a month with news or a seasonal offer.
6. Local eventsFarmers markets, school fairs, and festivals put you in front of locals face to face.
7. PartnershipsTeam up with a business that serves the same people. A hotel can recommend your restaurant; a salon can share a spa's cards.
8. FlyersPost them where it's allowed: community boards, coffee shops, and partner counters. Add a QR code to your map listing.

Getting a feel for paid advertising costs

Paid online advertising prices change often and depend on your area and industry. Here is what the platforms themselves say. Always check the current terms before you spend.

Google Ads: Google says you control costs by setting your own daily budget, that search ads are priced per click, and that there are no flat fees or monthly subscriptions. How much you spend is up to you.

Google Local Services Ads: Google says you pay per lead, meaning when a potential customer contacts you through the ad, and you set your budget. Businesses go through a screening and verification process first. It covers certain categories, including some beauty and wellness services like hair stylists and massage. Google has announced these ads are moving into the main Google Ads platform starting in 2026, so check the current setup.

Facebook and Instagram ads: You set a daily or total budget in Meta's ad tools and can pause at any time. Costs change based on your audience and competition.

Yelp Ads: Yelp's pricing page lists ad plans starting from $150 per month and notes that minimum budgets are subject to change. Ask Yelp for a quote for your category and city before you commit.

Which paid option fits your business?

Each paid channel reaches people at a different moment. Pick the one that matches how your customers decide.

• Google Ads fits when people search for what you sell right now, like "sushi near me" or "car rental Tamuning." You show up while they are ready to act.
• Local Services Ads fit service businesses in eligible categories that mainly want phone calls or messages. The verified badge can help new customers feel safer.
• Facebook and Instagram ads fit businesses with strong photos, like restaurants, salons, spas, and tours. They are better for getting noticed than for catching someone mid-search.
• Yelp Ads fit businesses where customers already compare options on Yelp, like restaurants and home services.
• Print and local media fit when your customers are mostly nearby residents who read local papers or community newsletters.

Recommended mixes for $0, $100, and $500 a month

These are starting points, not rules. Adjust them to your business and your season.

• $0 a month: Complete your five main free listings. Post on Google and Instagram each week. Ask every happy customer for a review. Send one email a month. Set up one partnership with a nearby business. See 25 free advertising ideas for more.
• $100 a month: Everything in the $0 plan. Then spend about $100 on one paid test, like a small Google Ads search campaign for your main service and town, or a Facebook and Instagram ad aimed at people near you. Run it for a month before you judge it.
• $500 a month: Everything above. Split the budget between two channels, for example Google Ads for people searching now and social ads for awareness. If you qualify, compare Local Services Ads. Print a small batch of flyers or cards for partner counters. Review the numbers every two weeks.

How to measure what's working

You don't need fancy software. A few simple habits tell you a lot.

• Check your Google Business Profile performance. Google shows calls, direction requests, website clicks, and more.
• Ask every new customer, "How did you hear about us?" Write the answer on a simple tally sheet.
• Use a unique offer code or QR code for each flyer or ad, so you know which one brought people in.
• Look at the cost per new customer, not just clicks. A cheap click that never books is not cheap.
• Compare month to month, and remember seasons. A slow January is not always the ad's fault.

5 advertising mistakes to avoid

1. Running ads to an incomplete listingFix your hours, photos, and reviews before you pay for clicks.
2. Targeting too wide an areaA cafe rarely needs to reach people two hours away. Start with a tight radius around your shop.
3. Changing everything at onceIf you change the ad, the budget, and the audience in the same week, you can't tell what helped. Change one thing at a time.
4. Signing long contracts too earlyTest month to month first. Read cancellation terms before you sign anything.
5. Buying fake reviews or followersIt breaks platform rules and can get your listing penalized. Google's policy bans offering payments or discounts for reviews.

Tourist-area businesses: reach travelers before the trip

If you are in a tourist spot like Guam, Saipan, or Hawaii, much of your advertising has to happen before visitors land. Travelers often pick restaurants, tours, and spas while planning at home, in their own language.

Pre-trip channels include TripAdvisor, tour marketplaces, hotel concierge partners, and directories for specific traveler groups. For Korean visitors, EODIGO is a free directory Korean travelers use to find local businesses. The Standard listing is free, we write your Korean description, and there is no commission. Pro ($30/month) and Premium ($200/month) plans are coming soon. You can list your business for free and keep your ad budget for other tests.

See more on our Guam, Hawaii, and Saipan pages, or read how to get more customers.

FAQ

What is the cheapest way to advertise my business?

Free listings, a complete Google Business Profile, reviews, and word of mouth cost only your time. They are the best place to start for most small businesses.

How much should I spend to start advertising?

There is no single right number. Many owners start with a small test budget they can afford to lose, run it for about a month, and then decide. Google Ads lets you set your own daily budget.

Can I grow my business without ads?

Many local businesses grow with free channels like listings, reviews, partnerships, and email. Ads can speed up reach, but they are not required. See our small business marketing guide.

How soon will I see results from advertising?

Paid ads can bring clicks within days. Free methods like listings and reviews usually take weeks or months to build up. Neither one is guaranteed, so track results and adjust.

Should I hire an agency?

It's optional. If you do, ask for clear monthly reports, a simple contract, and no long lock-in. Be careful with anyone who guarantees rankings or sales.

Sources

• Google Ads: How much does Google Ads cost?
• Google Local Services Ads overview
• Google Ads Help: Local Services Ads transition to Performance Max
• Yelp: Local business pricing
• Google Business Profile (free)
• Google Business Profile performance metrics
• Google Maps user contributed content policy

This guide is general information, not legal or financial advice. Features and prices of other services change; check each official page.