Guides

Facebook for Business in 2025: Is It Still Worth It? (The Honest Answer)

3 billion users but declining organic reach. Learn when Facebook still works for business, its unmatched ad targeting, and why some companies are abandoning the platform entirely.

OmniSignalAI Team

January 30, 2025

12 min read

#Facebook#Social Media Ads#Community Building#Local Business

Quick Answer

Use Facebook when: You're targeting 30-65 demographics, need the world's best ad targeting, running local business, or building community through Groups. Don't use it for: Gen Z audience (4% of users), high organic reach expectations, or if you can't invest $300+ monthly in ads.

The reality: Facebook has 3 billion users but organic reach is 2-6%. It's now a pay-to-play advertising platform with unmatched targeting precision. Treating it like 2012 Facebook is a recipe for failure.


Let's Address the Elephant in the Room

Everyone says "Facebook is dead" while simultaneously spending $68 billion yearly on Facebook ads.

The truth is more nuanced: Facebook the platform changed. Most businesses haven't adapted.

What Changed (And When)

2012: Organic reach for business pages: 16% 2015: Organic reach drops to 6.5% 2018: Organic reach hits 2% 2025: Organic reach: 2-6% (and shrinking)

What this means: If you have 10,000 followers, only 200-600 see your organic posts. Without ads, you're screaming into the void.

Why the change happened:

Meta realized the feed was overcrowded. They prioritized:

  1. Content from friends and family
  2. Content that sparks meaningful conversations
  3. Paid advertising (their $116 billion revenue stream)

Business pages got deprioritized. Not as punishment—as economics. There are 200 million business pages competing for space in 3 billion newsfeeds.

The Shift from Platform to Ad Network

Here's what most businesses don't accept: Facebook is now primarily an advertising platform, not a community platform.

Think of it like Google. You don't expect to show up at the top of Google search without SEO or ads. Facebook is similar—visibility requires payment.

This doesn't make Facebook useless. It makes it different.

The businesses winning on Facebook treat it as an ad platform with community features. Those losing treat it like 2012 Facebook and wonder why nothing works.


When Facebook is Still Your Best Choice

1. You're Targeting 30-65 Year-Old Demographics

The "Facebook is for old people" meme is actually your advantage if that's your customer.

Age breakdown:

  • 25-34 years: 30% of users (largest segment)
  • 35-44 years: 24%
  • 45-54 years: 16%
  • 55-64 years: 12%
  • 65+: 10%

Translation: 62% of Facebook users are 35+. If you're selling to middle-aged or older audiences, Facebook has the reach no other platform matches.

Examples where this matters:

  • Home services (roofing, HVAC, landscaping)
  • Financial services (retirement planning, insurance)
  • Healthcare (medical practices, elder care)
  • Travel (cruises, resort vacations)
  • Home goods (furniture, appliances)

Real example: A roofing company tried Instagram ads (targeting 25-45) and Facebook ads (targeting 35-60).

  • Instagram: $3,200 spend, 85 leads, $37.65 CPL, 2 closed deals ($10,000 total)
  • Facebook: $3,200 spend, 124 leads, $25.81 CPL, 7 closed deals ($38,000 total)

Same product, same offer, different platform. Facebook's older demographic meant homeowners who actually make decisions.

2. You Need Unmatched Ad Targeting Precision

Let's be blunt: Facebook's ad targeting is still the best in the business.

What you can target on Facebook:

  • Demographics: Age, gender, location (down to zip code)
  • Life events: Recently moved, newlywed, birthday, new job
  • Interests: 1,000+ detailed categories
  • Behaviors: Purchase history, device usage, travel patterns
  • Custom audiences: Upload customer lists, website visitors (pixel), app users
  • Lookalike audiences: Find people similar to your best customers

What makes this powerful:

Let's say you sell premium baby products. On Facebook, you can target:

  • Women 25-35
  • Who became parents in the last 6 months
  • With household income $75k+
  • Who've purchased from baby brands online
  • Living in suburban areas

Try doing that on TikTok. You can't. Their targeting is basic (age, location, interests).

ROI impact: Precise targeting means lower cost per acquisition. You're not wasting impressions on people who'll never buy.

3. You're Running a Local Business

If you serve customers within a 25-mile radius, Facebook's local targeting is unbeatable.

Local targeting features:

  • Radius targeting (1-25 mile radius from location)
  • Demographic overlays (income, homeownership, etc.)
  • "Local awareness" ad objective (people near you right now)
  • Local event promotion

Best local business use cases:

  • Restaurants and bars
  • Retail stores
  • Service businesses (plumbers, electricians, cleaners)
  • Gyms and fitness studios
  • Medical and dental practices

Why Facebook wins for local:

  1. Reach: More local users than Nextdoor, Instagram, or TikTok
  2. Intent: People check Facebook on their phone throughout the day (easy to act on local offers)
  3. Demographics: Older users with buying power

Example: A local restaurant spent $500/month on Facebook ads targeting 3-mile radius, promoted weekly specials.

Result: 4,200 people reached weekly, 35-50 new customers per month attributing to "saw on Facebook."

ROI: $500 spend → ~$3,500 in new customer revenue = 7:1 return.

4. Building Community Through Facebook Groups

Here's Facebook's secret weapon: Groups get 3x the organic reach of business pages.

1.8 billion people use Facebook Groups monthly. And crucially, content posted in Groups actually gets seen by members.

Why Groups work:

  • Facebook's algorithm favors Group content (community engagement goal)
  • Members opt-in (higher intent than page followers)
  • Fosters genuine community vs broadcast channel
  • Positions you as leader/expert in your niche

Examples that work:

Peloton Unofficial Groups: 500,000+ members, drives enormous brand loyalty and product advocacy—not run by Peloton, but massively valuable

Local business groups: "Seattle Moms" groups with 50,000+ members where local businesses sponsor or participate

Course creator groups: Info product sellers create student communities that serve as testimonials and upsell channel

The commitment: Groups require moderation. Plan for 5-10 hours weekly to:

  • Approve posts and members
  • Respond to questions
  • Create original content
  • Facilitate discussions

The payoff: Members are warmer leads. They've engaged with your brand repeatedly before seeing an offer.


When Facebook is the Wrong Choice

1. You're Targeting Gen Z (Under 25)

Let's look at the brutal numbers:

Gen Z social media usage:

  • YouTube: 95%
  • TikTok: 67%
  • Instagram: 62%
  • Snapchat: 59%
  • Facebook: 32% (and declining)

Only 4% of Gen Z reports Facebook as their primary social platform.

What this means practically:

If you're selling to college students or recent grads, Facebook ads will reach them—but they're not checking the app. Your ad gets one impression as they scroll through once weekly.

Meanwhile, they're on TikTok 95 minutes daily and Instagram 60 minutes daily.

Better platforms for Gen Z: TikTok, Instagram, YouTube, Snapchat

2. You're Expecting High Organic Reach Without Ads

This is the most common mistake: treating Facebook like a free marketing channel.

The math:

  • You have 5,000 followers (page likes)
  • Organic reach is 3%
  • Each post reaches 150 people
  • Your conversion rate is 2%
  • You get 3 actions per post

To get 300 actions monthly, you need to post 100 times. That's 3+ posts daily for minimal results.

Alternative approach:

Post 3x weekly organically (stay active), but invest $500 monthly in ads to reach 10,000-15,000 people. Same creative effort, 20x the reach.

Reality check: If you're not willing to pay for visibility, Facebook probably isn't worth your time. Focus on platforms where organic reach still exists (TikTok, LinkedIn, Pinterest).

3. You're Selling Complex B2B Products

Facebook can work for B2B, but it's harder than LinkedIn for several reasons:

Why B2B struggles on Facebook:

  • Users aren't in "work mode" (checking Facebook during downtime)
  • Decision-makers are on LinkedIn 2x more frequently
  • B2B buying cycles don't match Facebook's impulse-driven environment
  • Professional credibility is built on LinkedIn, not Facebook

When B2B can work on Facebook:

  • Lower-cost B2B products ($100-$1,000)
  • Solopreneur/small business audience (not enterprise)
  • Products that solve personal pain points (productivity tools, education)

Example: A webinar platform targeting small business owners can work on Facebook. An enterprise CRM selling to IT departments? Waste of money—go to LinkedIn.

4. Your Brand Requires Aesthetic Control

Instagram rewards beautiful, cohesive aesthetic. Facebook doesn't care.

If your brand is:

  • Fashion or luxury goods (visual identity critical)
  • Lifestyle or aspirational (Instagram's wheelhouse)
  • Youth-focused and trend-driven

Then: Instagram (and maybe TikTok) should be your priority. Facebook is secondary at best.

Facebook's feed is cluttered with memes, political posts, baby photos. Your carefully curated brand aesthetic gets lost in the noise.


Facebook vs Other Platforms: The Real Comparison

Facebook vs Instagram: Same Company, Different Strategy

Facebook is better for:

  • 30+ demographics
  • Local business targeting
  • Longer-form content (more text tolerance)
  • Advanced ad features (more targeting options)
  • Link clicks (algorithm doesn't punish as heavily)

Instagram is better for:

  • 18-35 demographics
  • Visual-first brands (fashion, food, lifestyle)
  • Building aesthetic brand identity
  • Higher organic engagement (0.6% vs 0.08%)
  • Influencer partnerships

The Meta advantage: You can run ads on both from one Ads Manager. Best practice: Test both placements, allocate budget to whichever performs better.

Typical result: Facebook gets 3x the reach for same budget, but Instagram gets 2x the engagement. Where you prioritize depends on your goals.

Facebook vs TikTok: Old Giant vs New Disruptor

Facebook strengths:

  • 3 billion users (2x TikTok)
  • Older, wealthier demographic (higher purchasing power)
  • Proven ad platform with 10+ years of optimization
  • Better for driving immediate sales/conversions

TikTok strengths:

  • 4.25% engagement rate (53x Facebook's 0.08%)
  • Younger demographic (60% under 25)
  • Organic reach still possible (doesn't require ads)
  • Higher content consumption (95 min/day vs 31 min/day)

When to use both:

Many e-commerce brands use TikTok for discovery and brand awareness (targeting 18-35), then retarget those users on Facebook/Instagram with conversion-focused ads.

Strategy: Capture attention on TikTok, convert on Facebook.

Facebook is better when:

  • You're creating demand (people don't know they want your product yet)
  • Visual demonstration is important
  • You have strong customer data for targeting
  • You want to build brand awareness + conversions

Google is better when:

  • Capturing existing demand (people actively searching)
  • You offer a searched-for service ("emergency plumber")
  • You have limited creative resources (text ads simpler than video)

Example: A new ergonomic office chair brand.

  • Facebook: Show the product, demonstrate features, target remote workers. Create interest.
  • Google: Capture searches for "best ergonomic office chair" from people ready to buy.

Best strategy: Use both. Facebook creates demand, Google captures intent.


What Actually Works on Facebook in 2025

Content That Gets Organic Reach (The Few Things That Work)

1. Video Content (Especially Live)

Facebook heavily prioritizes video because it competes with TikTok and YouTube.

  • Live video: Gets 6x the engagement of regular video
  • Short-form video: Under 60 seconds performs best (Reels)
  • Native upload: Never share YouTube links (algorithm suppresses them)

2. Content That Sparks Conversations

The algorithm rewards posts that generate comments (not just likes).

What sparks conversation:

  • Ask questions ("What's your experience with...")
  • Controversial takes (within reason)
  • Fill-in-the-blank ("I'm a ___ who ___")
  • Polls and surveys

What doesn't: Sales pitches, external links, engagement bait ("tag a friend")

3. Group Posts

As mentioned, posting in relevant Groups (not your own page) can generate 3x the reach.

The strategy: Join 5-10 industry-related groups, contribute valuable content (not sales pitches), build authority.

Example: A fitness coach joins local fitness groups, answers questions, occasionally shares workout tips. Gets 10x the reach vs posting on business page.

What Works in Facebook Ads (The Real Money-Maker)

1. Dynamic Product Ads (DPA) for E-commerce

If you have an online store, DPAs automatically show people products they viewed on your site.

Why they work: Retargeting converts 2-3x better than cold traffic. Someone browsed your product page but didn't buy—DPAs remind them.

Average ROAS: 6:1 to 10:1

2. Lead Generation Ads with Native Forms

Instead of sending people to your website, Facebook lets them submit info within the app (name, email, phone).

Why they work: Lower friction (don't leave Facebook), mobile-optimized, higher conversion rates.

Best for: Local services, consultations, free downloads, event registrations

Average cost per lead: $5-$15 (vs $30-$50 for website landing page)

3. Lookalike Audiences

Upload your customer list. Facebook finds people with similar characteristics.

Why they work: You're targeting people who statistically resemble your best customers.

How to use: Create 1% lookalike (most similar), test against 3% and 5% lookalikes (broader but more reach)

Example: E-commerce brand uploaded 1,000 customers who spent $100+. Created 1% lookalike (210,000 people). Targeted them with ads. Got 4.5:1 ROAS.

4. Value-First Content, Not Direct Sales

The shift: Instead of "Buy Now" ads, successful brands lead with value.

What works:

  • Free guide or checklist
  • Educational video series
  • Quiz or assessment
  • Webinar registration

Then retarget engaged users with sales offer.

Why: Facebook users aren't on the platform to shop. Give value first, sell second.


The Facebook Ads Budget Reality

Let's talk honestly about what you need to spend.

Minimum Effective Budget

Local business: $300-500/month

  • Focus on 1-2 campaigns (local awareness + retargeting)
  • Target 25-mile radius
  • Expect 5,000-10,000 reach monthly

E-commerce: $1,000-2,000/month

  • Need budget for cold traffic + retargeting
  • Test multiple ad creatives
  • Expect 3:1 to 5:1 ROAS (varies by industry)

B2C services: $500-1,000/month

  • Lead generation focus
  • Targeting specific demographics/interests
  • Expect $10-30 cost per lead

Below these minimums: Facebook's algorithm struggles to optimize. You're not spending enough to get meaningful data.

The Testing Phase Investment

Expect your first 1-3 months to be learning phase:

  • Month 1: Test audiences, creative, offers (might break even or lose money)
  • Month 2: Double down on what worked, cut what didn't
  • Month 3: Start seeing positive ROI as system optimizes

Many businesses quit after month 1 because they're not profitable yet. That's like planting seeds and expecting fruit in a week.

Scaling What Works

Once you find winning campaigns:

Scale gradually: Increase budget 20-25% weekly (sudden jumps reset algorithm)

Example scaling:

  • Month 1: $1,000 (testing)
  • Month 2: $1,500 (found winner)
  • Month 3: $2,500
  • Month 6: $5,000
  • Month 12: $10,000+ (if ROAS holds)

The trap: Scaling too fast. Going from $1k to $5k overnight usually tanks performance as algorithm adjusts.


Your Facebook Strategy for 2025

The Realistic Approach

Phase 1: Setup (Week 1-2)

  • Create/optimize Facebook business page
  • Install Facebook Pixel on website
  • Create business manager account
  • Set up basic conversion tracking

Phase 2: Organic Testing (Month 1)

  • Post 3x weekly (mix of content types)
  • Join 5-10 relevant Groups, engage actively
  • See what content resonates (even with low reach)
  • Budget: $0-200 to boost best posts

Phase 3: Paid Testing (Months 2-3)

  • Launch 3-5 ad campaigns with different audiences
  • Test 3-4 creative variations per campaign
  • Track: CTR, CPC, conversions, ROAS
  • Budget: $500-1,000/month

Phase 4: Scale (Months 4-6)

  • Turn off losing campaigns, double down on winners
  • Create lookalike audiences from converters
  • Expand to Instagram placement if not already
  • Budget: $1,000-3,000/month

The Group-First Alternative

If ad budget is limited, go all-in on Groups:

Month 1-3:

  • Create Facebook Group (not page) around your niche
  • Invite existing customers/email list to join
  • Post daily in YOUR group + engage in 5-10 related groups
  • Provide massive value (free advice, content, community)

Month 4-6:

  • Grow group to 500-1,000 members
  • Create member-only offers
  • Use group as testimonial/case study engine
  • Organic reach in group = free marketing

Investment: 10 hours/week, $0 ad spend

This works better for service businesses, coaches, and info product sellers. Less effective for e-commerce.


The Bottom Line: Is Facebook Worth It?

Facebook is worth it when:

  • You're targeting 30-65 demographics (62% of Facebook's 3B users)
  • You have $300+ monthly for ads (organic reach is dead)
  • You need advanced targeting precision (best in business)
  • You're running local business (unbeatable local reach)
  • You're willing to play the long game (3-6 months to ROI)

Skip Facebook when:

  • Targeting Gen Z (only 4% primary Facebook users)
  • No ad budget available (organic reach 2-6%)
  • Looking for quick viral organic reach (go to TikTok)
  • Selling complex B2B to young decision-makers (use LinkedIn)

The uncomfortable truth:

Facebook is no longer a "free marketing channel." It's a paid advertising platform with community features.

If you accept that and budget accordingly, Facebook offers unmatched reach (3 billion users) and targeting precision. The ad platform works—proven by $68 billion in annual ad spend.

If you're expecting 2012 Facebook where organic reach was free, you'll be disappointed and frustrated.

Choose based on reality, not nostalgia.

Most successful businesses use Facebook as part of a multi-platform strategy:

  • TikTok/Instagram for awareness and content
  • Facebook for targeted ads and conversion
  • LinkedIn for B2B and thought leadership
  • Email for owned audience

Facebook isn't the only platform you need. But for most businesses targeting 30+, it's still too big to ignore.