How does Instagram advertising work in Australia 2026?

ROI answers

Instagram advertising in Australia in 2026 operates via Meta’s advertising platform, utilising an auction-based system where advertisers bid to display their ads to specific target audiences within the Instagram app.

As of December 2025, all Instagram advertising is managed through Meta Ads Manager. Campaigns are built around advertising objectives – such as brand awareness, traffic, lead generation, or sales – and utilise detailed targeting options. These include demographic data, interests, behaviours, and custom audiences built from a business’s existing customer data (compliant with Australian Privacy Principles). Currently, ad formats include single image ads, video ads, carousel ads, collection ads, and Reels ads. In 2026, Meta continues to expand automated ad placements, meaning ads can appear not only in Instagram feeds and Stories, but also in Explore, and potentially within Instagram Shopping experiences. Meta Advantage+ campaign budget, now available in Australia, automatically distributes budget across placements to maximise results. Ad costs are determined by auction dynamics, influenced by factors like bid amount, ad quality, and target audience size. Australian businesses must adhere to ACCC guidelines regarding truth in advertising and disclosure of sponsored content.

Essentially, Instagram advertising functions as a real-time bidding system within Meta’s ecosystem, delivering targeted visual content to Australian users based on advertiser specifications and budget.


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