If you’re running paid social for your business, you’ve probably asked yourself: should I put my budget into Facebook ads, Instagram ads, or both? It’s one of the most common questions we hear from Australian business owners, and the answer isn’t as simple as picking a favourite.
Both platforms live under the Meta Ads Manager umbrella, which means they share the same targeting tools, bidding systems, and campaign structures. But the way people use Facebook versus Instagram is completely different, and that changes everything about which platform will deliver better results for your specific business.
Let’s break it down so you can make a smarter call with your ad spend.
Audience: Who Are You Actually Reaching?
In Australia, Facebook reaches approximately 17.7 million users, while Instagram reaches around 15.2 million. Both platforms have massive scale, but the demographics look different.
Facebook skews slightly older. Its core advertising audience sits in the 25-54 range, with strong representation from Gen X and Boomers. It’s where people go to stay connected with friends and family, join community groups, browse Marketplace, and read news. Australians on Facebook spend an average of 46 minutes per day on the platform.
Instagram leans younger and more visual. Women aged 25-34 make up a large slice of the Australian Instagram audience, and the platform is driven by discovery, inspiration, and visual storytelling. Reels now account for the majority of reach on Instagram, making short-form video the dominant content format.
The takeaway: if your ideal customer is a 45-year-old homeowner looking for a tradie, Facebook is likely your primary channel. If you’re targeting 28-year-old professionals with a lifestyle product, Instagram could deliver better engagement.
Cost Comparison: CPC, CPM, and Where Your Dollar Goes Further
Cost is where things get interesting. Here’s how the two platforms compare on key ad metrics based on recent benchmark data:
| Metric | Facebook Ads | Instagram Ads |
| Average CPC | $1.05 – $1.86 | $1.83 – $3.35 |
| Average CTR | 1.49% – 1.61% | ~1.53% |
| Engagement Rate | 0.15% | 0.48% |
| Average ROAS | 5.3x | 4.8x |
Sources: WebFX, Socialinsider, SQ Magazine, Brafton, 2025-2026 benchmarks
Facebook generally delivers lower cost per click and a slightly higher ROAS on average. That makes it the more cost-efficient choice for performance-focused campaigns like lead generation and direct conversions.
Instagram’s higher CPC reflects greater competition for younger, highly engaged audiences. But here’s the nuance: Instagram’s engagement rate is more than three times higher than Facebook’s (0.48% vs 0.15%), which means the audience that does interact with your ads is significantly more involved. For brand awareness and visual storytelling, that higher engagement can be worth the premium.
Ad Formats: Playing to Each Platform’s Strengths
Both platforms offer similar ad formats through Meta Ads Manager, but each has clear strengths.
Facebook excels at:
- Lead form ads that let users submit their details without leaving the platform
- Longer-form content where you need to explain a service or offer in detail
- Community-based campaigns that drive people to groups, events, or local pages
- Retargeting campaigns that bring back warm audiences (retargeting on Facebook delivers conversion rates of 11.4%, nearly double that of prospecting campaigns)
Instagram excels at:
- Reels and Stories that capture attention with short-form video (Stories deliver 61% higher CTRs than Facebook Feed)
- Visual product showcases through carousel ads and shoppable posts
- Brand awareness campaigns where aesthetics and perception matter
- Influencer-style creative that feels native to the platform rather than like a traditional ad
Which Platform Should You Choose?
There’s no single right answer. The best platform depends on what you’re trying to achieve, who you’re targeting, and how your business operates.
Choose Facebook if:
- Your target audience is 35+ (homeowners, parents, decision-makers)
- You’re focused on lead generation, quote requests, or bookings
- Your sales cycle involves multiple touchpoints and longer consideration
- You’re a local service business like a tradie or home services provider
- You need the lowest possible cost per lead
Choose Instagram if:
- Your target audience is 18-34 and visually oriented
- You sell products or services where aesthetics drive purchase decisions
- You have strong visual content (photos, video, behind-the-scenes footage)
- Brand awareness and community building are primary goals
- You’re in retail, beauty, fitness, food, or lifestyle
Run both if:
- You want full-funnel coverage, using Instagram for top-of-funnel awareness and Facebook for bottom-of-funnel conversions. We cover how to structure this in our guide to Facebook and Instagram ad funnels.
- Your audience spans multiple age groups and platforms
- You have the budget to test placements across both and let Meta’s algorithm optimise delivery
The Case for Running Both Together
Here’s what most guides won’t tell you: when you run campaigns through Meta Ads Manager with Advantage+ placements enabled, Meta automatically distributes your ads across Facebook and Instagram based on where they’re most likely to convert. With 82% of campaigns now using automated placements, the platform is getting very good at figuring out which user is more likely to act on which platform.
In practice, this means you don’t always have to choose. You can let Meta’s machine learning allocate your budget dynamically. The key is making sure your creative is adapted for each placement. A landscape video that works in Facebook Feed will need to be reformatted as a 9:16 vertical for Instagram Stories and Reels.
For a deeper dive into what realistic returns look like across both platforms, check out our breakdown of expected ROI from Facebook and Instagram ads.
A Quick Note for Australian Businesses
Australia’s social media landscape has a few unique factors worth noting. As of December 2025, Australia became the first country to legally ban social media for under-16s. This means both Facebook and Instagram audiences are now strictly 18+ for planning purposes, which actually simplifies targeting for most businesses since you’re no longer paying to reach users who were never going to convert anyway.
Australians are also some of the most active ad clickers in the world. Facebook users in Australia click an average of 22 ads per month, compared to the global average of 12. That’s in the top 8% globally. So if your ads are well-targeted and your creative is solid, the opportunity here is genuinely strong.
The Bottom Line
Facebook ads tend to win on cost efficiency, direct conversions, and reach. Instagram ads tend to win on engagement, brand perception, and visual impact. Neither platform is universally better. The right choice comes down to your audience, your goals, and the quality of your creative.
If you’re still not sure where to start, or you want to know whether your current campaigns are performing above or below benchmark, book a free 30-minute strategy call with our team. We’ll look at your current setup and tell you exactly where the biggest opportunities are.
Related Reading:
What Kind of ROI Can I Expect from Facebook/Instagram Ads?
Brand Awareness or Conversion Campaigns on Meta Ads?
What’s the Best Facebook & Instagram Ad Funnel for My Industry?
Google Ads vs Facebook Ads: Which Is Better for Your Business
