Australian brands are investing heavily in social advertising, a trend that is outpacing the broader digital ad market, according to the latest Digital 2027 Australia report from Meltwater and We Are Social.
Social ad spend is forecast to reach US$6.15 billion in 2026, a 16.5% increase from the previous year. This growth rate is three times that of the overall digital advertising sector, which grew by just 5.5%. Social media now represents more than 36% of the country’s total digital ad expenditure.
The surge in spending is fueled by a massive user base. Australia has 22.6 million social media user identities, a 7.6% annual increase that covers roughly 83% of the population. Australians are dedicating significant time to these platforms, averaging 16 hours and 52 minutes weekly online. This includes 9 hours and 16 minutes spent watching online video and 7 hours and 35 minutes on social media itself.
Time spent on social media now significantly surpasses traditional viewing habits. Australians watch an average of just 7 hours and 8 minutes of linear TV each week. The shift is also evident in streaming, with 78.8% of Australians watching streaming content weekly and 45.5% paying for a subscription—the fourth-highest rate globally.
Spending More, Connecting Less
Australia ranks third globally in social ad spend per user, at US$272 annually. This figure is more than four times the global average. Despite this heavy investment, many consumers feel disconnected from the ads they see. Almost three in ten Australian internet users employ ad blockers, and only one in ten feels genuinely represented in the advertising they encounter.
Suzie Shaw, APAC CEO at We Are Social, says the budget shift reflects where consumer attention is focused. “The numbers in this year’s report make one thing undeniable: social is no longer a supporting channel, it is the primary channel of consumer attention and brand discovery in Australia,” she stated. “So simply scaling budget isn’t enough. With high ad-blocker usage and low consumer feelings of representation, the real advantage belongs to brands that invest in culturally resonant, platform-native creative that drives genuine engagement.”
Related Post: RBI Rate Decision Looms Over Cautious Market Opening
Where the Attention Actually Is
Facebook remains the most-named platform for Australians, with 26% citing it as their top choice—double the global average. It drives more than three-quarters of all social referral traffic to other websites. However, engagement metrics reveal a different story. Instagram users spend an average of 1 hour and 47 minutes on the app daily, opening it more than 18 times. TikTok users are nearly as active, with 1 hour and 45 minutes of daily use and over 13 sessions.
For advertisers, YouTube offers the broadest reach, accessible to 22.6 million users, more than 93% of Australian adults. This surpasses Facebook’s 17.8 million users and Instagram’s 15.7 million. The platform’s extensive user base makes it a critical channel for brand visibility.
Generative AI is also emerging as a new discovery channel for consumers. Among them, 46% used it to search for information, 16% to research brands or purchases, and 8% say they discovered a new brand or product through an AI recommendation. Trust in these tools remains low, with only one in four Australians feeling comfortable using AI.
Ross Candido, VP ANZ at Meltwater, argues this shift redefines brand reputation. “Reputation is no longer just how a brand is perceived. It’s the data AI uses to decide whether it gets recommended at all,” he says. “That makes AI visibility a core part of reputation management. Brands need to connect what’s being said in media and social with how AI tools represent them, so they can spot gaps, correct the narrative and build credibility.”
Resources and Practical Steps
The Australian Government’s Digital Solutions program is helping small businesses adapt. This program, run through business.gov.au, is in its third funding round. It is backed by more than $25 million. The program offers up to five hours of free one-on-one coaching. Experts provide advice on digital tools and AI. Free workshops and webinars are also available. Topics cover digital marketing, e-commerce, and cybersecurity.
Building AI Visibility
Getting recommended by an AI tool requires discipline. The process is similar to search engine optimization. The focus is on direct, extractable answers. Businesses should write real FAQ and buying-guide content. This content must answer specific customer questions. It should be written in plain sentences an AI can cite. Clear, descriptive headings are better than clever ones. For example, “Shipping and Returns” is more effective than a vague heading.
Leave a Reply