The Most Effective Instagram Ad Strategy for Local Businesses

Running a successful ad campaign is about more than just hitting “launch.” A good strategy uses human psychology and buying behavior - we need to use 'positive manipulation'. Positive manipulation is about guiding your potential customers in the right direction—building trust, connecting with their needs, and gradually leading them to take action, rather than pushing for a sale right away.

Maybe this sounds logical to you, but most people who run ads completely forget they are targeting a cold audience and ask for a sale straight away. This strategy is very ineffective and will lead to a lot of wasted money and no results. How can we reach those same people for a lot less money and with an effective strategy? That is what this blog is about.

Instagram Ads

Videos vs. photo's

Insatgram used to be a photo only platform. With the rise of other platforms, such as TikTok, Instagram is following up with what consumers want, and being more and more video focused. Video ads consistently outperform photo ads, grabbing attention faster and driving more engagement. Most local businesses get scared off by making videos, either because they are not comfortable in front of the camera, don't have the budget to create a video or don't know how to create a video. Very understandable. But that is about to change.

It is not about you, nor your business

Before we getting into the real strategy and explain step-by-step how we are going to create an effective Instagram strategy, I want to point out one mistake most local businesses make.

We often fall into the trap of thinking from our own perspective, assuming that saying, “We’re better because we use X instead of Y,” will resonate with our audience. But consumers don’t care about X or Y—they care about how your product solves their problem. For example, instead of saying, “Our gym uses the latest equipment,” focus on what matters to them: “Our gym helps you see results faster, so you can hit your fitness goals in less time.”

During all of the following steps. Keep your ideal customer in mind. Even better, write down right now what your ideal customer looks like. Don't overcomplicate it. Focus on the basics: who they are, what they need, and how your product or service can help them. This will keep your messaging on point.

Step 1: Magnet Ad

A magnet ad should zoom in on your ideal customer’s biggest problem or stumbling block. It’s not about promoting your product right away—it’s about showing your audience that you understand their struggle. By addressing their pain points directly, you create a connection that makes them more likely to trust you and ultimately seek out your solution. The goal is to position your ad as the first step in solving their problem.

How to do this?

To create a magnet ad that connects with your audience, start by understanding their biggest challenge. Speak directly to that struggle in a way that feels human and relatable—no sales pitch. Share a story or ask a simple question that draws them in, like, “Is your home impossible to keep cool during the summer?” or “Frustrated with DIY projects that never quite turn out right?” Show them you get it, and offer a helpful tip or quick solution, showing that you’re here to help, not just sell. By doing this, you build trust, leaving them curious and open to your product or service as the natural next step.

We think we know what potential clients want - but the only way to be sure is through testing. Create always a few different sets of your ads, for example change the hook, change the location or CTA. Try to record the same video in 3 or 4 different way. If you are using Roya, the testing will be done automatically by AI. AI will automatically optimize your ads for the best performance without any extra effort on your part.

Some examples:

• Roofing: If keeping your roof in top condition feels overwhelming, here’s a simple trick to prevent leaks and extend its life.
• HVAC Services: If your home never seems to stay cool or warm enough, here’s a secret to optimizing your HVAC system without spending money.
• Lawn Care: If you’re struggling to keep your lawn green, there’s a little-known tip that will transform your yard with minimal effort.
• Auto detailing: If you’re struggling to keep your car looking shiny and new, here’s a simple pro tip that will make it effortless to maintain that fresh, just-detailed look every day.
• Hair Salon: If you can’t seem to keep your hair looking healthy between appointments, here’s a secret trick that will give your locks a salon-worthy shine at home.
• Nail Salon: If your manicure always chips too soon, here’s a pro tip to help your nails stay flawless for longer.
• Fitness Studio: If you’re struggling to see results from your workouts, here’s a simple fitness hack that can help you break through plateaus and achieve your goals faster.

This magnet ad is about getting more traffic and connecting with potential customers, the ad settings should reflect that. The setting your are going to choose are the following:

• Objective: traffic.
• Location: put in the target location, as a local business this is very important, so you don't waste your money on people who are not in your service area.
• Interests: make sure to keep it broad for this ad, we want to get traffic and we are not selling yet.
• Budget: about $10 to $15 a day.

Step 2: Nurture Ad

While your magnet ad is up and working, it is time to create the nurture ad. This one is meant to build a deeper connection with your audience. Instead of just addressing the pain points of your target audience (as we did in the first step), we are going to offer insights, value and build trust. And again, you need to test which videos resonates best with your target audience. Always create multiple versions of your ads—preferably at least 3 to 4.

There are several types of nurture ads you can use to build trust and keep your audience engaged. Here are some examples:

1. Advice and Tips Ads

• What it is: Provide practical advice or useful tips related to your industry.
• Example: For a fitness studio, share workout tips or nutrition advice like “3 simple exercises you can do at home to boost your energy.”‍
• Why it works: People love receiving free, actionable advice that adds value to their lives, building trust and positioning you as an expert.
  

2. Educational or Tutorial Ads

• What it is: Teach your audience something new or show them how to use a product/service.
• Example: A hair salon can create a tutorial on “How to keep your hair healthy between appointments” or “Quick styling tips for busy mornings.”‍
• Why it works: Educational content helps your audience solve a problem or improve a skill, making your brand more memorable.‍
  

3. Customer Testimonial Ads

• What it is: Share real customer testimonials or success stories to build credibility.
• Example: For a roofing company, showcase a customer story explaining how your service solved a major roofing issue, along with their feedback.
• Why it works: Social proof is powerful. When potential customers see that others have had a great experience, it builds confidence in your business.
  

4. Case Study or Success Story Ads

• What it is: Highlight specific results or outcomes achieved for past customers.
• Example: An HVAC service could show a case study of a homeowner whose cooling bill dropped after upgrading their system with your help.
• Why it works: Demonstrating tangible results showcases the effectiveness of your service and motivates potential customers to take action.
  

5. Inspirational or Motivational Ads

• What it is: Share inspirational stories or motivational content that resonates with your audience’s values.
• Example: A fitness studio could share transformation stories or motivational quotes with images of clients achieving their goals.
• Why it works: Inspiring ads connect emotionally with your audience, encouraging them to take action while associating your brand with positive outcomes.
  

6. Q&A or Problem-Solution Ads

• What it is: Answer frequently asked questions or present common problems with solutions.
• Example: A roofing company can answer a common question like “How do I know if my roof needs replacing?” followed by an expert solution.
• Why it works: By addressing common questions or concerns, you’re establishing yourself as an approachable expert, reducing the barrier to future engagement.
  

The nurture ad is all about building relationships and keeping potential customers engaged. The settings you’ll want to focus on are:

• Objective: Engagement, to get more interactions with your content.
• Location: Use the same targeted location as your magnet ad.
• Interests: Retargeting. We are narrowing down your audience by targeting those who interacted with your magnet ad, visited your website, or showed interest in your business.
• Budget: $10 per day.

Step 3: Conversion Ad

The last phase of this strategy is the conversion ad. This is where we want the target audience to take action—whether it’s booking a service, signing up for a consultation, or making a purchase. By this point, your audience should already be familiar with your brand and more willing to take the next step. In this ad, you want to focus on the benefits of your product or service and include a strong, direct call-to-action. You can also offer limited-time deals, discounts, or incentives to encourage immediate action.

Many businesses skip the first two steps—magnet and nurture ads—and jump straight into asking for a sale. Usually ineffective, because it misses the chance to build trust and establish a connection. By following the full strategy, you’re guiding your audience through the entire journey, making them much more likely to convert.

Examples:

• Fitness Studio: “Sign up today for a free trial class and take the first step toward achieving your fitness goals!”
• Hair Salon: “Book your appointment now and get 20% off your first service this month.”
• Roofing Company: “Schedule a free roof inspection today and protect your home from leaks before the next storm hits.”
• Auto Detailing: “Get that new car look—Book your detailing service now and enjoy 10% off!”

Ad Settings for Conversion Ads

• ‍Objective: Conversions, to drive people to take specific actions like making a booking or signing up for a consultation.
• Location: Same as your previous ads—target your specific service area to ensure you’re reaching local customers.
• Interests: Retarget users who have engaged with your magnet or nurture ads, visited your website, or interacted with your social media accounts.
• Budget: $15 to $30 per day to maximize your reach to people ready to convert.

Strong CTA and Offer:

This is where you want to be very clear with your CTA, whether it’s “Book Now,” “Sign Up,” or “Get Your Discount.” Adding a sense of urgency can also help drive conversions, such as “Limited time only,” or “Offer ends soon.”

By the end of this step, you’ve guided your audience from awareness to action, turning cold leads into loyal customers. This strategy not only brings in more qualified leads but also helps you grow your revenue—giving you the freedom to focus on what you love, while your ads work effectively to drive results.

Tips

1. Hook Them in the First 3 Seconds

Grab attention right away with a bold statement, question, or striking visual. The first few seconds are crucial for stopping the scroll, so make sure your hook directly connects to your audience’s pain point or hints at a solution. Try different videos, with different hooks and see what works best (this is why A/B testing is so important!)

Example: For a fitness studio, start with something like, “Struggling to lose those last 10 pounds? Here’s what you’re missing…”

2. Focus on the Customer’s Problem, Not the Product

Dive straight into your customer’s frustration. Show them that you understand their struggle before introducing your service as the solution. Keep the focus on how your service improves their life.

Example: A hair salon ad could show someone dealing with damaged hair, then introduce your treatment as the key to healthy, vibrant locks.

3. Highlight a Transformation or Solution

Show the transformation your service provides. Use real-life examples, before-and-after shots, or testimonials to illustrate the results your audience can expect.

Example: A nail salon video could feature before-and-after nail transformations, with close-ups to highlight quality and durability.

4. Include a Clear Call-to-Action (CTA)

End your video with a strong, clear CTA. Whether it’s “Book Now,” “Get Your Free Consultation,” or “Sign Up for a Trial Class,” make the next step easy for viewers to take.

Tip: Add urgency with lines like “Limited spots this week!” or “First 10 customers get 20% off” to increase conversions.

5. Use Subtitles and Captions

Many Instagram users watch videos without sound, so make sure your message is still clear by adding captions or on-screen text. This improves both accessibility and engagement, helping you get your point across even in silent mode.

Conclusion

By following this 3-step Instagram ad strategy—magnet, nurture, and conversion ads—you’ll not only build trust and engagement with your audience but also convert the target audience. By following this method you’re not wasting money targeting cold audiences with sales pitches but instead, creating a structured approach that turns leads into loyal customers. The combination of engaging video content, effective testing, and strategic calls-to-action will help your business grow while freeing you up to focus on what you do best.