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Do Facebook ads still work for ecommerce in Australia and NZ, or is it too saturated?

By Dan BartleyUpdated 3 minute read

The short answer

Yes. Australians spent $82.6 billion online in 2025, up 14% on the year before, and households bought from an average of 16 brands, so shoppers are open to new ones. What has changed is how fast ads wear out in smaller markets and how much the result depends on creative volume, margin and the product page.

Is there still enough online demand in Australia?

Yes. Australia Post's eCommerce Report 2026 found Australians spent $82.6 billion online in 2025, up 14% on the year before, and that 9.8 million households shopped online.

The same report found households bought from an average of 16 brands a year, a figure that has grown for a decade. Shoppers are willing to try brands they have not bought from before, and finding those new buyers is what Meta prospecting ads are for.

Is Meta too saturated for small brands?

The platform is not, but the account often is. What feels like saturation is usually the same few ads shown to the same people too many times, and in a market the size of Australia, or even more so New Zealand, that happens sooner than in the US.

The fix is the same in both countries: more distinct creative, launched on a schedule, so the account always has something new to show. There is more on spotting it in why ads suddenly stop working.

What has changed is where the edge comes from. The targeting tricks that once helped small advertisers are now automated for everyone, so the advantage sits in what you feed the system:

  • Distinct creative, now the main lever, and one that wears out
  • An offer that gives a stranger a reason to buy
  • A product page that converts the clicks
  • Measurement against your store's numbers, because privacy changes mean Meta sees fewer sales directly

What is different about selling in Australia and New Zealand?

Freight costs, the local calendar and market size each change how ads should run. Delivery across long distances eats more margin on bulky goods, the sale calendar follows local peaks such as end-of-financial-year sales in Australia, and Christmas falls in summer, so creative made for northern markets often misses.

Run and judge the two countries separately where you sell in both. Prices, freight and GST differ, and a campaign that blends them hides which market is working.

Which online stores struggle with Meta ads?

Stores with thin margins after freight, low order values, or products people rarely buy on sight. Meta ads can still work for them, but the maths leaves less room, so the offer and the product page have to do more.

Considered purchases, such as furniture, often need several ads before a sale. Judge them over a longer window and on blended store revenue, not on a single click.

How long should I test Meta ads before deciding they do not work?

Long enough to run several rounds of genuinely different ads with tracking confirmed, which for most stores means two to three months. One campaign with one or two ads for a fortnight tests those ads, not Meta.

Decide in advance what would count as working: a cost per purchase below your breakeven, or new customers at a cost you can carry. Without that line, a hesitant test tends to end on a bad week rather than on the evidence.

What makes Meta ads work for an Australian store now?

A margin that leaves room for ads, a steady flow of new creative, and honest measurement against your store's numbers.

  • A breakeven ROAS you know, worked out from margin after freight and GST
  • New, distinct ads every month, not the same ad in new sizes
  • One consolidated sales campaign with Advantage+ settings on
  • Product pages that answer price, delivery and returns questions up front
  • Monthly comparison of Meta's figures with Shopify

Other questions people ask about this

Do Facebook ads work in New Zealand?

Yes, with the same rules and a smaller audience, so creative wears out sooner at the same spend. Brands selling in both countries should run and judge them separately, because prices, freight and GST differ.

Is Instagram better than Facebook for e-commerce?

They run from the same ad account and the same campaigns, and Advantage+ placements spread spend across both. Judge results by campaign, not by app.

Should I try TikTok or Google instead?

Add them when Meta is working and you have creative to spare, not as an escape from a Meta account that is short of new ads. The same creative constraint follows you to every platform.

Still have a question? Ask us

Sources

  1. Australia Post: eCommerce Report 2026 (PDF)

Dan Bartley

Founder, Bartley Studio

Dan runs Bartley Studio. He has spent eight years in design, creative direction and paid ads, and now directs the imagery, video and Meta ad accounts the studio delivers for e-commerce brands in Australia and New Zealand.

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