Social media ad spend surges to $4.26bn as brands double down on influencer marketing

Social media advertising in Australia surged 12% year-on-year to reach US$4.26 billion, accounting for 29% of total digital ad spend, according to the Digital 2025 Australia report from Meltwater and We Are Social.

Influencer marketing is also on the rise, with spend up 13% as brands poured US$520 million into creator-led campaigns like Contiki's Switch On Social Travel (pictured). The data reflects a shift in marketing budgets towards social-first strategies, as Australians increasingly turn to social platforms for brand discovery and purchase decisions.

With 20.9 million social media identities, covering 78% of the population, social media is now a dominant force in consumer engagement and digital commerce. Australians are using an average of 6.5 social media platforms per month and spending nearly two hours daily on social, further driving ad investment.

Social narrows in on search for brand discovery

The report found that 58% of Australians use social media to research brands and products, closing in on traditional search engines, which sit at 62%. This shift reinforces the importance of platform-specific ad strategies, with brands competing for attention across a fragmented but highly engaged audience.

Ross Candido, VP ANZ at Meltwater, said marketers must adapt their strategies to reflect changing consumer behaviour.

“As Australian consumers turn to social media as a key brand research tool, brands must strategically align their media mix and tailor content to engage diverse audience groups across platforms,” he said. 

“By harnessing real-time insights into consumer behaviour and engagement preferences, brands can optimise their marketing campaigns by delivering authentic, relevant content where it matters most.”

TikTok and LinkedIn see strong growth

TikTok continues to dominate time spent, with Australian Android users logging nearly 39 hours per month, well above the global average. LinkedIn is also gaining traction, with its advertising audience reach increasing 13% year-on-year to 17 million users, covering over 80% of Australians aged 18+.

We Are Social Australia CEO Suzie Shaw said brands must do more than just appear on social media—they need to engage meaningfully.

“In Australia, social media is where culture is shaped, opinions are formed, and brands are built,” she said. “The challenge for marketers today isn’t just being seen, but being relevant. With more Australians using social media to discover, research, and engage with brands, success comes down to understanding culture and tapping into it in meaningful ways.”

Misinformation and privacy concerns remain

As social media's role in brand discovery grows, so do concerns around misinformation and data privacy. The report found that 75% of Australians worry about distinguishing real from fake information online, while 43% are concerned about how companies handle their data.

With social now rivalling search for brand discovery and ad spend continuing to climb, brands face an evolving digital landscape where relevance, trust, and platform-specific engagement will define success.