Whether $500 AUD per month is sufficient for Google Ads in Australia in 2026 depends entirely on the competitiveness of your target keywords and industry, but fundamentally, Google Ads operates as an auction system where advertisers bid on keywords to display ads when users search for those terms.
As of December 2025, Google Ads now includes Performance Max campaigns, which utilise machine learning to optimise bids and ad placements across all Google’s advertising inventory – Search, Display, YouTube, Discover, Gmail, and Maps. Bidding strategies, currently including options like ‘Maximise Conversions’, ‘Target CPA’, and ‘Target ROAS’, automatically adjust bids based on algorithms analysing numerous signals. In 2026, Google has announced further integration of AI-powered bidding, aiming for increased automation. Cost-per-click (CPC) varies significantly; highly competitive keywords in sectors like finance or legal can easily exceed $10 per click, while less competitive terms might be under $2. Australia’s ad market is generally more expensive than some other regions due to higher competition and a relatively affluent consumer base. Google Ads also incorporates Quality Score, a metric assessing ad relevance, landing page experience, and expected click-through rate, which influences ad rank and CPC – a higher score can lower costs. Compliance with Australian Consumer Law regarding ad content remains crucial.
Google Ads functions as a dynamic auction where advertisers compete for visibility based on bids, Quality Score, and ad relevance, with AI increasingly automating the bidding process to achieve campaign goals.
