IAB Australia reports that Australian businesses spent $8.6 billion on search advertising in FY2026, representing 43% of digital advertising expenditure, while social video expenditure grew 29.5% year-on-year to $2.4 billion. With the Australian internet advertising market growing 14% year-on-year to $19.8 billion, businesses are clearly turning to digital channels to create new opportunities and increase revenue.
However, it is important to avoid simply copying what everyone else is doing without tailoring it to your business or customer.
See, customer acquisition doesn’t have a universally superior channel. In reality, businesses should be looking at how customers make purchasing decisions before locking in a specific channel or tactic.
As the IAB report suggests, Google Ads works fantastically for some businesses, but it can be a budget-wasting exercise for others. Similarly, social media activity may drive revenue for one, but fail to move the needle for another.
The truth is, one-size doesn’t fit all, and what works for one may not work for you.
So how do you know which channels to prioritise? It comes down to understanding purchasing behaviour, knowing what’s economically viable for your business and market opportunity.
Purchasing behaviour and intent
Buying an outfit for a party and finding a local plumber happen in two very different ways.
A customer looking for an outfit may not be actively shopping but can be influenced by a compelling product or offer on social media. As they get closer to deciding, they may Google to shop around for the most cost-effective or trustworthy retailer before they part with their cash. IAB Australia highlights that while search remains the dominant ecommerce discovery channel, buying journeys are increasingly fragmented across social, search, reviews, retailers and AI.
But when the intent is much more urgent, this journey shortens considerably. Someone searching for an emergency plumber has an immediate need and is actively looking for a solution. Therefore, the funnel for finding a plumber likely requires less discovery and more bias toward immediate solutions. This could start and end with a Google search, with users looking for immediate trust signals (like reviews) before clicking to call.
Channel viability
The channels receiving the greatest attention (or spend, for that matter) aren’t necessarily the ones marketers believe deliver the greatest return. Australian marketers surveyed for Dot Digital’s 2026 Marketing Trend Report nominated email and CRM marketing as their leading ROI channel, even though it ranked eleventh among their current channel priorities.
So, why don’t marketers or businesses simply invest in better CRMs and email communication? To send an email, you need to know the customer, which requires an acquisition strategy to capture at least their contact details before this channel can really get to work. This is typically where lead generation comes in.
When businesses consider lead generation, they need to evaluate the cost to capture a customer (cost per lead) against commercial factors such as profit margins, customer lifetime value, and ultimately ROI.
Search advertising can drive leads for as little as $10 (or less) in some industries and still be considered expensive, yet the cost per lead may be hundreds of dollars in another industry and remain a priority channel. A $134 lead may be entirely reasonable for a business selling $50,000 contracts.
Market opportunity
While IAB Australia points to Search Advertising dominating online advertising spend in Australia, that doesn’t necessarily mean it’s a good fit for every business. Depending on search volume and demand, you may find insufficient volume for your product or service on that platform. This could be because you operate in a niche industry or because people simply don’t know that your solution exists.
Equally, that channel may already be saturated with competitors, driving up costs, reducing visibility and making it harder to stand out. When others zig, maybe you should zag.
A channel can be perfectly suited to your customers’ purchasing behaviour and still represent a poor investment if the market is too small, competition is too expensive or there is insufficient room to grow.
You should also align your channel mix with your immediate and long-term commercial goals. SEO may require significant time and investment, but once you’ve secured organic visibility within your industry, it can be an evergreen, cost-effective source of leads and customers. While paid advertising can provide faster access to customers, once you stop paying, your ads stop appearing.
What channel fits your business?
Going full circle, one size doesn’t fit all. However, what is true is that the better you understand your customers, their mindset when considering your product or service, and what motivates them to take action, the better equipped you’ll be to make informed marketing decisions.
But choosing the right channels isn’t a set-and-forget exercise. Customer behaviour changes, competition evolves, and what delivers results today may not work tomorrow. If you need help, we can tailor a combination of channels that works best for your customers, your business, and your bottom line.
