Social media advertising spend is determined by a complex interplay of factors, but fundamentally operates on an auction system: you bid against other businesses to show your ad to your target audience. As of early 2026, platforms like Meta (Facebook & Instagram) and increasingly TikTok, utilise sophisticated algorithms to optimise ad delivery based on your budget and campaign goals.
- Automated Bidding Strategies: Current systems include ‘Cost Per Result’ bidding, where you pay only when a desired action (like a lead or purchase) occurs.
- Advanced Audience Targeting: Platforms now feature hyper-local targeting, allowing you to reach specific postcodes or even households within Australia.
- Creative Optimisation: AI-powered tools automatically test different ad variations (images, copy) to identify the highest-performing combinations.
- Conversion Tracking: Robust pixel tracking and server-side API integrations accurately measure the return on your ad spend.
In 2026, Australian businesses must also consider the evolving privacy landscape. The updated Online Privacy Act requires explicit consent for data collection, impacting retargeting capabilities. Furthermore, ad costs fluctuate based on seasonality (higher around key retail periods like Boxing Day) and industry competition. A starting point for many SMBs is between $500 – $2,000 per month, but optimal spend varies dramatically. Factors like your industry, target audience size, and campaign complexity all play a role. It’s not simply about *how much* you spend, but *how* you spend it.
Rather than navigating such complex technicalities yourself, you can simply reach out to our team. At ROI.com.au, we specialise in data-driven social media advertising for Australian businesses. We can take care of all this for you.
