Instagram vs. TikTok vs. Facebook: Where Should Local Businesses Actually Be?

The $4,000 Lesson in Platform Selection

Last quarter, a local boutique fitness studio came to us frustrated.

They'd been posting on Instagram, TikTok, and Facebook—three posts daily across all platforms. Every. Single. Day.

That's 63 posts per week. The owner spent 15-20 hours creating content. They hired a part-time social media coordinator for $1,500/month. They paid for stock music subscriptions, editing apps, scheduling tools.

Total investment over 4 months: $8,400 (plus 300+ hours of their time)

The results?

• Instagram: 847 followers, 2-3 likes per post
• TikTok: 213 followers, 8-12 likes per post
• Facebook: 1,200 followers (mostly friends/family), minimal engagement

Total new customers directly from social media: 3

Cost per customer: $2,800.

Here's the thing—they were doing everything the "gurus" said. Posting consistently. Using trending audio. Writing engaging captions. Responding to comments.

But they were on the wrong platforms for their business.

We shifted their entire strategy to just TikTok (where their target demo actually lived) and Facebook Local (for geo-targeted ads to people within 5 miles).

Same time investment. Same budget.

Results after 60 days:

• 47 new trial class signups
• 31 became paying members
• Cost per customer: $180

What changed? They stopped spreading themselves thin and went all-in where it actually mattered.

Let me save you eight grand and show you how to make that choice.

The Uncomfortable Truth About Social Media

Here's what nobody wants to hear: you probably don't need to be on all three platforms.

"But everyone says you need to be everywhere your customers are!"

Sure. Except your customers aren't equally distributed across platforms. And even if they were, you don't have unlimited time or budget to create platform-specific content for each one.

The average small business owner has maybe 5-10 hours per week for social media (being generous). Splitting that three ways means you're bad at everything instead of great at one thing.

So the real question isn't "Should I be on Instagram, TikTok, or Facebook?"

It's "Which one platform gives me the best shot at reaching my specific customers with my limited resources?"

Let's figure it out.

Platform Snapshot: The 2025 Reality

Before we dive into which one you should choose, let's look at what each platform actually is right now (not what they were in 2020).

TikTok: The Discovery Engine

By the numbers:

• 1.6 billion monthly users
• Average user spends 61 minutes/day (highest of all three)
• 7.14% average engagement rate
• Largest age group: 25-34 (not just teens anymore)
• Average cost per click: $0.89

What it's actually good for:

• Going viral (their algorithm pushes content to people who don't follow you)
• Reaching younger audiences (but Millennials dominate now)
• Product discovery ("TikTok made me buy it")
• Building brand awareness fast with limited followers

What it sucks at:

• Driving direct website traffic (link in bio only, unless you have 10K followers)
• Long sales cycles (people come for entertainment, not to buy enterprise software)
• Older demographics (if your customers are 55+, they're probably not here)

Time investment: Moderate to high. You need video content, but it can be raw/unpolished. Consistency matters more than production quality.

Instagram: The Lifestyle Showcase

By the numbers:

• 2 billion monthly users (largest reach)
• Average user spends 49 minutes/day
• 4.67% average engagement rate (but median dropped below 1% in early 2025)
• 78.3% of users are under 45
• Average cost per click: $1.29

What it's actually good for:

• Visual brands (food, fashion, design, travel, fitness)
• Building aspirational brand images
• Reaching Millennials and older Gen Z
• E-commerce (shopping features, product tags)
• Established brands with existing followings

What it sucks at:

• Organic reach for new accounts (algorithm favors accounts people already follow)
• Going viral if you have under 5,000 followers
• Breaking through without a budget (pay to play or grind for years)

Time investment: High. Content needs to be polished, aesthetically consistent, and align with your "grid." Reels, Stories, and feed posts all require different formats.

Facebook: The Local Targeting Machine

By the numbers:

• 3 billion monthly users (still the largest platform)
• 78% of 30-49 year-olds use it
• 0.15% average engagement rate (lowest of the three)
• Facebook Marketplace: 1+ billion monthly users
• ROI: $5.28 for every $1 spent on ads (highest)

What it's actually good for:

• Local businesses targeting specific geographic areas
• Older demographics (50+ age group is highly active)
• Hyper-targeted ads (best targeting options of all three)
• Community building (Groups still work really well)
• Marketplace sales for local products/services

What it sucks at:

• Organic reach (basically dead—posts reach 2-5% of your followers without paid boost)
• Reaching Gen Z (they're not here)
• Going viral (unless it's in a Group, and even then...)

Time investment: Low to moderate for organic. High if you're running paid ads (requires testing, optimization, monitoring).

The Decision Framework: Which Platform Is Right for YOU?

Forget the general advice. Let's get specific based on your actual business.

Choose TikTok If:

Your target customer is under 40

• If you're targeting Millennials and Gen Z, this is where they spend the most time

You sell visually demonstrable products/services

• Can you show your product working in 15-60 seconds? TikTok loves demos, transformations, before/afters

You have personality/can be entertaining

• TikTok rewards personality. If you can be funny, educational in a fun way, or just genuinely yourself, you'll do well

You're comfortable on camera

• Still photos don't work here. You (or someone on your team) needs to show up

You want fast growth with no followers

• The algorithm is discovery-first. Your first video could hit 100K views even with zero followers

Best industries for TikTok:

• Restaurants/Food & Bev (food prep, menu reveals)
• Fitness/Wellness (workout demos, transformation stories)
• Retail/E-commerce (product demos, styling tips)
• Beauty/Salon Services (before/afters, tutorials)
• Home Services (oddly satisfying cleaning/repair videos)

Real example: A local car detailing business started posting satisfying before/after videos. No ads. Just organic content. Went from 0 to 12,000 followers in 3 months. Booked solid for 8 weeks out. Total cost: $0 (unless you count the $30 ring light).

Choose Instagram If:

Your brand is highly visual/aesthetic

• If your products/services are Instagram-pretty (interior design, fashion, photography, high-end food), this is home

Your target is 25-45, skewing female

• 55% of Instagram users are women, and it's dominated by Millennials

You already have some traction elsewhere

• Instagram rewards existing audiences. If you have email lists, website traffic, or real-world customers, you can convert them to Instagram followers

You can commit to a consistent visual brand

• Your grid matters. Color schemes matter. Aesthetic cohesion matters.

You sell lifestyle/aspiration

• People come to Instagram to imagine their best life. If your product fits that narrative, you win

Best industries for Instagram:

• Fashion/Apparel
• Interior Design/Home Decor
• Wedding/Event Services
• High-end Restaurants/Cafes
• Travel/Hospitality
• Fitness/Yoga Studios
• Creative Services (photography, design)

Real example: A local interior designer curated her Instagram with stunning room transformations. Highly polished Reels. Beautiful Stories showcasing her process. Built to 6,500 followers in 18 months. Averages 2-3 high-value client inquiries per month directly from Instagram. Her average project: $15K.

Choose Facebook If:

You're targeting local customers within a specific geographic area

• Facebook's local ad targeting is unmatched. "Women aged 35-55 within 10 miles who like home improvement" level specific

Your audience is 40+

• If you're targeting Baby Boomers or older Gen X, they're on Facebook way more than TikTok/Instagram

You have a budget for ads

• Organic reach is dead. But Facebook ads work if done right. Best ROI of all three platforms

You sell services, not products

• HVAC, plumbing, legal services, financial advising, home remodeling—service businesses crush it with Facebook local ads

You want to leverage Marketplace

• Selling physical goods locally? Marketplace has 1+ billion monthly users actively looking to buy

Best industries for Facebook:

• Home Services (HVAC, plumbing, electrical, roofing)
• Professional Services (legal, accounting, real estate)
• Healthcare/Medical (dentists, physical therapy, chiropractors)
• Automotive Services (repair, detailing)
• B2B Local Services
• Community-based businesses

Real example: A local HVAC company ran Facebook ads targeting homeowners 45+ within 15 miles when temps hit 90°. Spent $800 on ads over two weeks. Generated 47 quote requests. Closed 18 jobs averaging $3,200 each. Revenue: $57,600. ROI: 7,200%.

The "I Still Can't Decide" Cheat Sheet

Answer these five questions:

1. How old is your typical customer?

• Under 30: TikTok first, Instagram second
• 30-45: Instagram first, TikTok second
• 45+: Facebook only

2. What are you selling?

• Physical products (apparel, accessories, beauty): Instagram
• Local services (HVAC, legal, healthcare): Facebook
• Food/Entertainment/Experiences: TikTok or Instagram
• B2B services: Facebook (LinkedIn if enterprise-level)

3. How much content creation time do you have per week?

• 2-5 hours: Pick ONE platform
• 5-10 hours: Pick ONE, but post more consistently
• 10+ hours: You could do two, but honestly still better to dominate one

4. Are you comfortable on camera talking/performing?

• Yes: TikTok
• Kinda: Instagram (can do more static/edited content)
• No: Facebook (text posts, images, ads work fine)

5. Do you have a budget for ads?

• Yes ($300+/month): Facebook
• Yes ($100-300/month): Instagram or Facebook
• No budget: TikTok (best organic reach)

The Biggest Mistake (And How to Avoid It)

The #1 mistake we see: treating all platforms the same.

You can't just post the same content to all three and call it a day. Each platform has different:

• Content formats (TikTok = vertical video; Instagram = Reels and grid posts; Facebook = literally anything but performs best with video)
• Audience expectations (TikTok = raw/authentic; Instagram = polished/curated; Facebook = informative/community-driven)
• Algorithms (TikTok = discovery-first; Instagram = follower-first; Facebook = pay-to-play)

What most businesses do: Create one piece of content, post it everywhere, get mediocre results across all three.

What smart businesses do: Pick one platform. Create content specifically for that platform's format and audience. Dominate. Then (maybe) expand to a second platform later.

The One-Platform Strategy (That Actually Works)

Let's say you pick TikTok (because you're a local coffee shop targeting Millennials).

Here's your 5-hour/week strategy:

Monday (1 hour):

• Film 3-5 quick videos (behind-the-scenes, latte art, customer reactions, trending audio participation)
• Don't overthink it. Film on your phone. Natural lighting. You're done.

Tuesday (1 hour):

• Edit the videos (basic cuts, add text, trending sound)
• Write captions
• Schedule posts for Wed, Fri, Sun

Wednesday/Friday/Sunday (30 min each, 1.5 hours total):

• Post goes live
• Respond to comments for 10 minutes
• Engage with other local businesses' content for 20 minutes

Saturday (1.5 hours):

• Review analytics
• Note what worked/didn't
• Plan next week's content based on top performers

Total: 5 hours/week. One platform. Actually sustainable.

Compare that to trying to do all three platforms:

• Same 5 hours
• Divided by 3 = 1.6 hours per platform
• Not enough time to do any of them well
• Mediocre results everywhere

"But My Competitor Is On All Three!"

Cool. Are they actually getting results, or are they just...present?

There's a massive difference between:

• Having 5,000 Instagram followers with 20 likes per post (engagement rate: 0.4% = dead account)
• Having 1,200 TikTok followers with 400 likes per video (engagement rate: 33% = actively growing)

Vanity metrics (follower counts) mean nothing. Engagement and actual business results (leads, sales, foot traffic) mean everything.

Your competitor with 10K followers across three platforms might be getting fewer customers than you with 2K followers on the right platform.

When It Makes Sense to Use Multiple Platforms

Okay, there are scenarios where you should be on more than one platform. But it's not "post everywhere all the time."

Scenario 1: Different Platforms for Different Purposes

Example: A high-end restaurant

• Instagram: Beautiful food photography, brand building, aspirational content
• Facebook: Local ads for special events, reservations, driving foot traffic
• TikTok: Behind-the-scenes, chef personality, viral recipe demos

Notice: Different content for different goals on each platform.

Scenario 2: You Have Multiple Target Audiences

Example: A boutique gym

• TikTok: Targeting 25-35 year-old women with transformation stories
• Facebook: Targeting 45-60 year-old men with "stay active as you age" messaging

Different demographics on different platforms = makes sense to be on both.

Scenario 3: You Have a Dedicated Team/Budget

If you have:

• A social media manager (not you doing it in stolen hours)
• A content budget ($1,000+/month)
• A clear strategy for each platform

Then sure, you can juggle multiple. But if that's not you, don't pretend it is.

The 90-Day Test

Can't decide? Here's what we recommend:

Month 1: Go all-in on ONE platform

• Post 3-5x per week
• Engage daily
• Track metrics (followers, engagement, website clicks, conversions)

Month 2: Continue that platform, assess results

• Did you gain traction?
• Are you getting inquiries/sales?
• Is it sustainable time-wise?

Month 3: Either double down or test a different platform

• If Month 1-2 worked: keep going, optimize
• If Month 1-2 flopped: try a different platform with a different strategy

At 90 days, you'll know:

• Which platform your audience actually uses
• What content format works for your business
• Whether social media is even the right channel (spoiler: for some businesses, Google Ads or SEO drive better ROI)

What About Paid Ads?

Organic social media is about building an audience over time. Paid ads are about immediate results.

If you need customers now, here's the ROI ranking:

1. Facebook Ads (Best ROI for Local Services)

• Average: $5.28 return for every $1 spent
• Best for: Targeting specific demographics/locations
• Minimum budget: $300/month to test effectively

2. Instagram Ads (Best for E-commerce/Visual Products)

• Similar to Facebook (same ad platform)
• Better for younger demographics and product sales
• Minimum budget: $300/month

3. TikTok Ads (Best for Brand Awareness/Viral Reach)

• Cheapest CPC at $0.89
• Best for reaching new audiences fast
• Minimum budget: $500/month (TikTok's minimum daily spend is higher)

For most local businesses, Facebook Ads beat organic social every time if the goal is quick customer acquisition.

Organic is for brand building. Paid is for lead generation. You probably need both eventually, but start with whatever matches your immediate goal.

The Harsh Reality Check

Let me be brutally honest for a second.

Social media might not be the best use of your time.

If you're a local plumber, you might get 10x better ROI from:

• Google My Business optimization
• Local SEO
• Google Ads targeting "emergency plumber near me"

Than from posting TikToks.

If you're a B2B software company, LinkedIn and direct outreach might crush anything you do on Instagram.

Social media is a tactic, not a strategy. The strategy is "acquire customers profitably." If TikTok does that for you, great. If it doesn't, stop wasting time and try something else.

We've had clients who came to us wanting "social media management" and we told them to invest in Google Ads instead. Because that's what'll actually make them money.

How We Actually Help Businesses Win at This

At illumin8labs, we don't just "manage your social media" (though we can).

We help you figure out:

1. Where your customers actually spend time (data, not assumptions)
2. Which platform matches your resources (time, budget, skillset)
3. What content format works for your industry (based on testing, not trends)
4. Whether social media even makes sense (or if Google/SEO is better)

Then we either:

• Train you to do it yourself (if you have time and want to learn)
• Do it for you (if you want it off your plate)
• Tell you honestly if your money is better spent elsewhere (if social isn't the answer)

A lot of agencies will take your money and post pretty pictures regardless of results. We'd rather tell you the truth, even if it means less revenue for us.

Because when you grow, you'll come back. When you waste money, you'll leave. Simple.

Your Action Plan (Right Now)

Stop overthinking. Start testing.

Step 1: Based on this article, pick ONE platform for the next 30 days

Step 2: Create a simple content plan

• 3-5 posts per week
• One content theme (behind-the-scenes, tips, customer stories, whatever fits your brand)

Step 3: Set a reminder for 30 days from now to review:

• Follower growth
• Engagement (likes, comments, shares)
• Website traffic from social
• Actual inquiries/sales

Step 4: After 30 days, decide to continue, adjust, or try a different platform

You'll learn more from one focused month than from six months of half-assing three platforms.

Want help figuring out which platform will actually drive results for YOUR specific business?

We offer free 30-minute social media audits where we'll look at your business, your customers, and your current presence—then tell you honestly which platform (if any) makes sense to focus on.

No cookie-cutter advice. No "you need to be everywhere." Just straight talk about where your time and money will actually pay off.

Schedule your free audit or explore our social media marketing services.

Because life's too short to post into the void hoping something sticks.

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About the Author: Feras Dalia is Co-Founder and Marketing Strategist at illumin8labs. He's managed social media for 100+ businesses across every platform and believes the best social strategy is the one you'll actually stick with—which usually means picking one platform and doing it really, really well.