As a local business, you're undoubtedly aware that Facebook continues to take the marketing world by storm.  In fact, as of November, 2010, Facebook accounted for 23% of all display advertising sold in the U.S - WOW!  

While there are varied marketing opportunities available on Facebook, I want to focus this particular post on display advertising - the ability to create and place ads within Facebook.  

The first question to ask yourself is, "should I be advertising on Facebook at all?"  In most cases, if you have the need to reach directly to consumers in defined geographic market, the answer is probably yes.  There are many options to consider with your local internet marketing plan, but in general Facebook is a great option.  We manage local internet marketing for many businesses and have seen great success recently with Facebook display ads.  In particular, we've seen some great success in the dental implant marketing space helping local doctors get their message across via Facebook.  

This post isn't meant to be a comprehensive guide to advertising on Facebook, but I wanted to pass along some simple "nuggets of wisdom" for those local businesses who are incorporating Facebook display ads into their local internet marketing strategy: 

• Facebook offers both Cost-Per-Click (CPC) and Cost-Per-Thousand (CPM) advertising options.  If you have significant time to dedicate, and are spending a significant amount of money, CPM can often deliver lower-cost results.  However, for lower budgets or a lower time investment, the CPC model requires a smaller time investment and can be much easier. 
• Create at least 5-10 ads.  Facebook users are a fickle bunch, and you're never sure exactly what's going to encourage them to click on your ad.  Create multiple ad versions and see what drives the clicks, the results will often surprise you. 
• When developing your target, err on the side of "too targeted" and expand your target based on results. 
• Change your ads frequently.  Track your click-through-rate (CTR) and when you see an ad drop to about half of it's original CTR, pause it and create another.  After a few months, you can reactivate the old ad and often will see the CTR increase back to it's previous level. 
• When creative your ads, use interesting images (ie not your logo).  People like to see people, animals and the unexpected so give them a reason to click on your ad. 
• Copy is important and should be weighed just as heavily as the image.  Say something interesting - ask a question - make an offer - give them a reason to click. 
• When setting-up your budget, you can choose daily or lifetime.  I prefer to set a lifetime budget, then set a daily budget limit - it helps me get the amount of data I need on a regular basis to make good decisions.  
• Track your clicks from Facebook to your website and measure the results.  You can use the Google URL Builder to create an easily-trackable URL.  

Understanding these basics, and tracking the results on a daily basis, will help take you from Facebook "newbie" to "experienced" within a short period of time.