How to Advertise Your Business Locally: A Merchant's Guide

TL;DR: The Best Way to Advertise Locally

Local business advertising success comes down to a 3-part system:

1. Get found: Claim your Google Business Profile, ensure NAP consistency across directories, and optimize for local search.
2. Get chosen: Build trust with reviews, high-quality photos, and fast response times.
3. Drive action: Run one trackable promotion at a time (including pay-for-performance options when you have capacity to fill).

Your 30-Day Quick-Start Plan:

• Week 1: Claim and optimize Google Business Profile, Yelp, and Bing Places
• Week 2: Set up geotagged social media posts and join local community groups
• Week 3: Launch one trackable offer (consider pay-for-performance if you have empty time slots)
• Week 4: Review results, respond to all reviews, and optimize what's working

Local Advertising Checklist:

• ☐ Google Business Profile fully completed
• ☐ NAP consistent across top directories
• ☐ Review request process in place
• ☐ 2–4 geo-targeted posts per week
• ☐ One paid test at a time with a unique tracking code
• ☐ Monthly channel review and optimization

Choose Your Next Step:

• Need more discovery this month? → Start with Google Business Profile optimization + review requests
• Need bookings / appointments? → Set up booking-first offers + trackable promo codes
• Need to fill unused capacity fast? → Consider pay-for-performance options

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When it comes to growing a local business, the old saying still rings true: location, location, location. But in 2025, your location isn't just your physical address—it's everywhere your customers are searching for you online.

If you've ever wondered "how do I get more people through my door?" or "where should I advertise my business locally?" you're asking the right questions. Local advertising is the heartbeat of small business growth, connecting you with neighbors who are ready to buy right now. Whether you run a restaurant, salon, gym, or service-based business, mastering local promotion means filling empty tables, chairs, and appointment slots with customers who keep coming back.

The challenge? Balancing a limited budget with the need for high-impact visibility when seeking ways to advertise your business. You're competing not just with the business down the street, but with every online ad, social post, and search result vying for attention in your market. And with 46% of all Google searches having local intent¹, the opportunity to capture customers actively looking for businesses like yours has never been greater.

In this guide:

• Understanding Local Advertising: What It Means and Why It Works
• Best Free Places to Advertise Your Business Locally
• Local SEO: Ranking Where Your Customers Are Searching
• Social Media Tactics for Local Engagement
• Paid Local Advertising Ideas That Accelerate Growth
• Traditional Meets Digital: Offline Local Marketing Ideas
• Measuring Success: Tracking What Works

Understanding Local Advertising: What It Means and Why It Works

Definition: Local advertising is any marketing that helps people in your area discover your business and take action—whether that's calling, booking an appointment, visiting your location, or making a purchase.

The "Near Me" Revolution

Search behavior has fundamentally changed. "Near me" searches more than doubled in 2022 and have continued growing since then², with phrases like "restaurants near me," "hair salons open now," or "best gym in [city name]" dominating mobile queries. This means customers are actively looking for businesses like yours—but only if you're visible where they're searching.

Match Your Strategy to Your Goal

Before you invest time or money, identify what you're trying to accomplish:

• Brand awareness? Getting your name out there so people recognize you when they need your services.
• Immediate foot traffic? Filling empty time slots, tables, or appointments this week or this month.
• Online bookings? Capturing customers who prefer to schedule digitally before showing up.

Your answer will shape which tactics you prioritize. A new business might focus heavily on awareness through free listings and social media, while an established restaurant with weekday lunch gaps might lean on paid promotions with immediate redemption. The key is choosing channels that match both your goal and your available capacity.

Best Free Places to Advertise Your Business Locally

Let's start with the foundation: free visibility. These platforms cost nothing except your time, and they're essential for anyone wondering where to advertise your business.

The "Big Three" Free Online Advertising Sites

If you do nothing else, claim and optimize these three profiles:

1. Google Business Profile

Your Google Business Profile (formerly Google My Business) is the single most important free tool for local business advertising. When someone searches for your business or service category, your profile appears in Google's Local Pack—those three businesses that show up with map pins at the top of search results.

How to optimize it:

• Complete every section: business hours, photos, categories, attributes, and description
• Add high-quality photos of your location, products, and team
• Respond to every review (yes, even the bad ones)
• Post updates regularly (special offers, events, new menu items)

2. Yelp

Yelp remains a powerhouse for local discovery, especially in industries like restaurants, salons, and home services. Claim your free business page and ensure your information matches what's on Google to avoid confusion.

3. Bing Places

While Google dominates, Bing powers search for millions of users. Setting up your Bing Places listing takes minutes and ensures you're not missing potential customers.

Niche Directories and Industry-Specific Listing Sites

Beyond the big three, look for industry-specific or neighborhood-specific directories:

• Restaurants & Bars: OpenTable, TripAdvisor, Zomato
• Salons & Spas: StyleSeat, Fresha, Booksy
• Things to Do: Viator, GetYourGuide, local tourism boards
• General Local: Nextdoor Business, Chamber of Commerce directories

Beyond Digital Directories: Old-School Places That Still Work

Don't overlook traditional local advertising venues that complement your online presence:

• Local newspaper websites: Many still maintain active "local business" sections and event calendars
• Community calendars: City/tourism board websites, library event listings, neighborhood association newsletters
• Local radio: Consider sponsorships for community segments or traffic reports
• Physical bulletin boards: Libraries, community centers, gyms, coffee shops, and grocery stores often have boards where you can post flyers
• Neighborhood newsletters: Print or email newsletters from HOAs, parent groups, or civic organizations

Action Items: NAP Consistency

NAP stands for Name, Address, and Phone number. Make sure these are identical across every platform. Even small differences (like "Street" vs. "St.") can hurt your local search rankings because search engines get confused about which version is correct.

Local SEO: Ranking Where Your Customers Are Searching

Free listings are great, but local SEO takes your visibility to the next level by ensuring your website shows up when people search for what you offer.

Keyword Strategy: Think Like Your Customer

The secret to local SEO is incorporating local modifiers into your content. Instead of targeting broad terms like "Italian restaurant," focus on "best Italian restaurant in [Your City]" or "family-friendly pizza near [Neighborhood Name]."

Where to use these keywords:

• Website homepage and service pages
• Blog posts about local events or guides
• Page titles and meta descriptions
• Image alt text

Google's Local Pack: The Top 3 Spots

When someone searches with local intent, Google displays a "Local Pack" of three businesses above the regular search results. Getting into this coveted space requires:

• A fully optimized Google Business Profile
• Positive reviews (quantity and quality matter)
• Local citations (your business listed on other sites)
• Location-specific content on your website
• Physical proximity to the searcher

Google's local search algorithm is built on three main pillars: distance, relevance, and prominence. Reviews play a major role in prominence³, directly influencing how high your business ranks in local search results. Even if your business is a bit farther from the customer, strong reviews and optimization can help you compete.

The Role of Reviews in Local Advertising

Reviews aren't just social proof—they're a ranking factor. Businesses with more reviews and higher ratings tend to rank better in local search results. Here's how to leverage them:

• Ask satisfied customers to leave reviews (verbally, in follow-up emails, or with signage)
• Respond to all reviews within 24-48 hours
• Thank customers for positive feedback
• Address negative reviews professionally and offer to make things right offline

Review Request Scripts:

In-person version: "We're so glad you enjoyed your experience today! If you have a moment, we'd really appreciate it if you could share your feedback on Google. It helps other customers discover us. Here's a card with the link—thank you!"

SMS/Email version: "Hi [Name], thanks for visiting [Business Name]! We hope you loved [specific service/dish]. If you have 60 seconds, would you mind leaving us a review? It makes a huge difference for our small business. [Insert review link]. Thanks again!"

Social Media Tactics for Local Engagement

Social media isn't just for national brands—it's one of the most powerful free tools for local businesses to build community and drive foot traffic.

Community Groups: Where Your Neighbors Hang Out

Facebook Groups and Nextdoor are digital versions of the neighborhood bulletin board. Join local groups (neighborhood associations, parent groups, hobby clubs) and participate authentically. Share helpful content, answer questions, and occasionally mention special offers—but avoid being spammy.

Geotagging: Location, Location, Location

When you post on Instagram, TikTok, or Facebook, always add your location as a geotag. This makes your content discoverable to users browsing that specific area. Encourage customers to tag your location in their posts too—it's free advertising.

Pro tip: Create a branded hashtag for your business and encourage customers to use it. Feature the best customer posts on your own profile to build community and social proof.

Why Local Engagement Matters

Average social media engagement rates fall between 1.4% and 2.8% in 2025⁴, making local, authentic content more important than ever for cutting through the noise. By focusing on community-building and geo-targeted posts, you can achieve engagement rates well above industry averages.

Local Influencers: Micro is Mighty

You don't need a celebrity endorsement. Micro-influencers (accounts with 1,000–10,000 followers in your local area) often have highly engaged audiences and charge reasonable rates—or may even partner in exchange for free services or meals.

Look for local food bloggers, lifestyle influencers, or community advocates whose audience matches your target customer.

Paid Local Advertising Ideas That Accelerate Growth

Free strategies build your foundation, but paid advertising accelerates results. The key is choosing platforms that deliver measurable ROI.

Comparing Your Paid Channel Options

Google Local Service Ads: High-Intent Customers

Google Local Service Ads (LSAs) appear at the very top of search results for service-based businesses like plumbers, electricians, locksmiths, and house cleaners. You only pay when a customer contacts you directly through the ad, making it a pay-for-performance model.

Best for: Home services, auto repair, professional services

When this is a fit:

• You offer services that require immediate action (emergency repairs, urgent appointments)
• You can respond to leads quickly (within minutes to hours)
• You're licensed and can pass Google's screening requirements

When this isn't a fit:

• You're appointment-only with long lead times
• Your service category isn't eligible for LSAs yet
• You don't have the bandwidth to respond to inquiries rapidly

The Groupon Advantage: Pay-for-Performance Local Advertising

Groupon is built as a pay-for-performance option for local customer acquisition—helpful when you want measurable demand and have capacity to fill.

How it works: A customer purchases a voucher, and Groupon holds the payment until the voucher is redeemed or refunded. The customer redeems the voucher and receives your product or service. Groupon then pays you the revenue from the purchase, minus a commission fee that covers marketing and platform costs. There are no upfront fees to start a campaign. See our FAQ to learn more.

Why local businesses consider Groupon:

• Pay-for-performance model: You only pay a marketing fee after a customer redeems their voucher
• Flexible campaign controls: Set monthly voucher caps and use booking tools to manage when customers come in, helping you fill slow periods without overwhelming busy times
• Access to an active customer base: Groupon connects you with millions of shoppers actively searching for local experiences
• Merchandising support: Groupon's algorithm shows your offer to shoppers most likely to buy

(Exact program details can vary—confirm your specific setup in Merchant Center or with your rep.)

When Groupon is a fit:

• You have predictable empty time slots or tables to fill (weekday lunchtimes, off-season periods)
• You can deliver exceptional service that turns first-timers into regulars
• Your variable costs are low enough that discounted traffic still contributes to overhead
• You want customer data and feedback to improve your business

When Groupon isn't a fit:

• You're already at 90%+ capacity across all time periods
• Your margins are too thin to accommodate promotional pricing
• You can't deliver a great experience during high-volume periods
• You're not set up to capture customer information for follow-up marketing

Ads for Campaigns: Boost Your Visibility

Once you have a Groupon campaign live, you can use Ads for Campaigns to increase your offer's visibility on the platform. This can help you get in front of more shoppers during seasonal peaks or when you have extra capacity to fill.

Best for: Seasonal pushes (Mother's Day for spas, Valentine's Day for restaurants), new campaign launches, or when you want to test increased visibility

Quick Answers: Common Questions About Groupon Campaigns

How do I avoid getting overwhelmed with voucher sales?

Set a monthly voucher cap in your campaign settings. Groupon will notify you when you're at 90% capacity, and you can pause your campaign anytime using Campaign Manager.

When do I get paid?

Groupon pays merchants weekly (typically on Wednesdays) for vouchers redeemed during the preceding period.

How do I track redemptions?

You can redeem Groupon vouchers by scanning them in the free Groupon Merchant app, manually enter codes in Merchant Center, or use automatic check-in if you have one of Groupon's booking solutions integrated.

Traditional Meets Digital: Offline Local Marketing Ideas

Don't forget the power of face-to-face connections in your community. Some of the most effective business advertising still happens offline.

Community Involvement: Show Up and Give Back

Sponsor local sports teams, school events, or charity fundraisers. Your business name on a banner at the little league field keeps you top-of-mind with families in your neighborhood. Plus, it builds goodwill—people like to support businesses that support their community.

Cross-Promotion: Partner with Neighbors

Team up with non-competing local businesses for referral programs. For example:

• A gym could partner with a smoothie shop or massage studio
• A restaurant could partner with a nearby theater or bowling alley
• A salon could partner with a bridal boutique or photography studio

Offer discounts to each other's customers and promote each other on social media. You'll tap into each other's customer bases without competing for the same dollar.

Measuring Success: Tracking What Works

The only way to know if your local advertising is working is to track results. Here's how to stay on top of your performance.

Local Advertising Tracking Template

Example (sample data—replace with your own numbers):

Tracking Foot Traffic from Online Promotions

For online-to-offline promotions like Groupon, tracking is built in. Your Merchant Center shows exactly how many vouchers have been redeemed, when customers came in, and insights about spending patterns.

For other tactics:

• Ask new customers "How did you hear about us?" at checkout
• Use unique promo codes for different channels (social media vs. email vs. print)
• Track referral sources in your booking software

Understanding Customer Value

While tracking immediate metrics like redemption rates is important, don't lose sight of the bigger picture. A customer who comes in once through Groupon and spends $50 above their voucher value is valuable—but a customer who becomes a regular and visits monthly for years is exponentially more valuable. Focus on creating experiences that turn first-time Groupon customers into loyal, full-price regulars.

The Performance Dashboard: Know Your Numbers

Groupon's Performance Dashboard provides insights into customer behavior, including demographics and spending patterns. Use this data to refine your offers and understand which customer segments are most valuable.

Metrics to watch:

• Redemption rate: Are customers actually using the vouchers they bought?
• Average spend above voucher value: Are customers spending more than the voucher amount?
• Repeat purchase rate: Are Groupon customers coming back and paying full price?
• Review ratings: What are customers saying about their experience?

Conclusion

Advertising your business locally doesn't have to be overwhelming or expensive. The most successful local businesses combine free strategies with selective paid tactics, track what's working, and continuously optimize.

Your quick recap:

Start with the fundamentals (Google Business Profile, reviews, NAP consistency), layer on community engagement through social media and local partnerships, then strategically add pay-for-performance options when you have capacity to fill.

The key is consistency. Local advertising isn't a one-time effort—it's an ongoing conversation with your community. Every review you respond to, every post you share, and every customer you delight builds your reputation and visibility.

The Partner Mindset

The best local businesses don't go it alone. They partner with platforms and tools that amplify their reach while protecting their bottom line. That's the philosophy behind Groupon's merchant partnerships: we succeed when you succeed. Our pay-for-performance approach means our incentives are aligned: we focus on measurable outcomes and transparent reporting so you can make smart decisions about what to run next.

Sources

1. Local search intent statistics: https://www.seroundtable.com/google-46-of-searches-have-local-intent-26529.html
2. "Near me" search growth: https://business.google.com/us/think/consumer-insights/reach-customers-on-google/
3. Google local ranking factors: https://support.google.com/business/answer/7091
4. Social media engagement benchmarks: https://blog.hootsuite.com/calculate-engagement-rate/

 

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