Australia's social advertising market is accelerating, with brands investing at three times the rate of the wider digital market, according to the latest Digital 2027 Australia report from global intelligence company Meltwater and socially-led creative agency We Are Social.
Australia now has 22.6 million social media user identities, up 7.6% year-on-year and equivalent to almost 83% of the population, with 85% of internet users aged 16+ using social media every week.
Australians spend an average of 16 hours and 52 minutes a week on social platforms (of which 9 hours and 16 minutes watching online videos and 7 hours and 35 minutes on social media), significantly exceeding the 7 hours and 8 minutes spent watching linear TV.
The shift towards digital entertainment is also reflected in Australia’s growing popularity of streaming services, with 78.8% watching streaming content each week. Almost half (45.5%) of Australians pay for TV and movie streaming services, compared with 32.4% globally - placing Australia fourth worldwide.
Social takes a bigger share of advertising budgets
Social advertising spend is projected to reach US$6.15 billion (A$8.76 billion) in 2026, up 16.5% year-on-year, compared with 5.5% growth in digital advertising overall, now representing over 36% of Australia's digital advertising expenditure.
This investment reflects the growing role of social media in the consumer journey, with more than half of users aged 16+ also using social media to research brands and products, reinforcing its importance for marketers.
Australia also ranks third globally for social advertising spend per user identity, at US$272 (A$387) annually, more than four times the global average of US$58.
Yet growing investment isn't necessarily translating into stronger connections with consumers. Almost three in ten Australian internet users use ad blockers, while only one in ten feels represented in the advertising they see and hear online, pointing to a need for more relevant creative that better reflects audiences' interests and experiences.
Facebook drives traffic, while Instagram and TikTok lead on engagement
Facebook remains Australia's favourite social platform, with 26% of social media users naming it their top choice, double the global average, and driving over three-quarters of all social referral traffic.
Meanwhile, active Instagram users spend an average of 1 hour and 47 minutes on the app daily, opening it 18.2 times a day. TikTok follows closely at 1 hour and 45 minutes, with 13.5 daily sessions.
YouTube, where users spend 1 hour and 28 minutes per day, has Australia's largest reported potential social advertising reach at 22.6 million users, equivalent to over 93% of Australian adults, followed by Facebook (17.8 million) and Instagram (15.7 million).
AI introduces new opportunities for brand discovery
Australia shows strong adoption of generative AI, with over 7 in 10 internet users using it in the past month. 46% have used AI tools in the past month to search for information, 16% to research brands or potential purchases, and 8% have discovered new brands or products through AI. Despite growing adoption, Australians remain cautious about it, with only 1 in 4 feeling comfortable using AI tools.
Ross Candido, VP ANZ at Meltwater, said: “The real story in this year’s data is where brand discovery is heading next, and how quickly it’s getting there. More than seven in ten Australians have used generative AI in the past month, nearly half to search for information, and a growing share to research brands and find new products. Reputation is no longer just how a brand is perceived. It’s the data AI uses to decide whether it gets recommended at all.
“That makes AI visibility a core part of reputation management. As the landscape becomes more complex and fragmented, unified intelligence is a strategic necessity. 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. The brands that measure and manage this now won’t just track the conversation. They’ll shape what AI says about them.”
Suzie Shaw, APAC CEO at We Are Social, says: “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. Brands increasing their social ad spend at three times the rate of the broader digital market are responding to a fundamental shift; Australians are spending more time on social feeds than watching linear television, and over half rely on these platforms to research products. 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 and earns brands cultural relevance.”
Digital 2027 Australia is available for free download here.
ENDS
Note: AUD figures are approximate equivalents of the USD estimates reported in Digital 2027 Australia.
About Meltwater
Meltwater is the global leader in actionable intelligence for PR, Communications, and Marketing teams. By analyzing 1.3 billion pieces of content daily, Meltwater transforms media, social, and AI signals into intelligence that leaders rely on to make faster, more confident decisions. With 27,000 customers worldwide, Meltwater is the intelligence platform global brands trust to stay ahead.
Meltwater: Intelligence you can act on.
Learn more at meltwater.com
About We Are Social
We are a global socially-led creative agency, with unrivalled social media and influencer marketing expertise. With over 1,200 people in four continents, we deliver a global perspective to our clients in a time when social media is shaping culture.
We make ideas worth talking about. We understand social behaviours within online communities, cultures and subcultures, spanning the social and gaming landscape. We build influencer partnerships with impact.
We work with the world’s biggest brands, including adidas, Samsung, Woolworths, KFC, eBay and Audi, to reach the right people in a strategic, relevant and effective way.
We Are Social is part of Plus Company.
To learn more, visit www.wearesocial.com
Campaign Brief Australia https://campaignbrief.com/social-ad-spend-grows-three-times-faster-than-australias-digital-advertising-market-says-new-report-from-we-are-social-and-meltwater/
SecurityBrief Australia https://securitybrief.com.au/story/future-infosum-bring-audience-data-to-wpp-planners
Dynamic Business https://dynamicbusiness.com/news/reputation-now-means-what-ai-says-about-you-not-just-what-people-do