Advice needed

I am the owner of a chat site, providing a 2d graphical chatbox.

The website is aimed at users in my city, providing them with a chat to meet other local users online.

I have tried paid facebook advertising and have no success, i am seeking advice from sitepoint to help me kick start my chatrooms.

You can try email marketing it’s really effective. Several email marketing software available to start this approach. It really generate meaningful visitors to your service and you can have your chat service more popular…You can also target a specified region or country.

which one would you recommend?

spread it to local media , your friends and family, dive into seo thing to get traffic from search engine

Facebook advertising is good if you know who your demographic is but if you don’t really know then Google adwords is a much better PPC platform. If you do stick with Facebook ads run mutiple adds with the same written content but change the image. See what one performs the best and drop the rest.

Why don’t you try twitter, friend feed, qupsa, boxee.

Don’t waste time trying to hop on over-hyped internet bandwagons. It’s a local service, then you have an advantage in knowing you have a real geographic market. Contact local businesses and try to cooperate to create an incentive program a la foursquare. If people use your service, they can get access to local discounts. They don’t have to be huge, but together if you publicize this fact you can actually attract people by giving them something real.