Digital Marketing in 2026: What Australian Small Businesses Actually Need to Know

At last year's Core Connect Business Summit, we sat down with Susie Basiaco, Limon Ghosh and Ina Cadorin to talk about where digital marketing was heading for local businesses. A lot of what they said has now come true, and some of it faster than any of us expected. So this update goes back through everything covered, looks at what's actually happened since, and lays out what it means for Australian small business owners right now: no jargon, just what's changed and what to actually do about it.

Staying visible in the age of AI search

If Google searches feel different lately, you're not imagining it. Google now uses AI to answer a lot of questions directly at the top of the page, without the user ever clicking a link. We go into what this specifically means for a small business in what Google's AI Overviews and AI Mode mean for your visibility. Around 69% of Google searches now end without a single click. That means even ranking well doesn't guarantee a visit to your website anymore. As Susie Basiaco, one of our panel experts, puts it:

"If you're not visible in your own backyard, you're letting business slip away to someone else."By Susie

The fix doesn't require becoming a tech expert. It requires making sure Google's AI actually knows about you and trusts you enough to mention your business. Start with the basics: keep your Google Business Profile accurate (hours, address, phone number all correct, because if they're wrong, Google won't trust you and neither will customers). Get listed consistently on local directories like TrueLocal, Yellow Pages AU and StartLocal, since these are still places Google and other AI tools check to verify a business is legitimate, and even small formatting differences (like "Street" vs. "St") can matter. And don't underestimate reviews: every genuine five-star review tells Google's AI that real people trust you, which directly affects whether you show up when someone nearby is searching.

Writing content that Google's AI will actually pick up

The way you write on your website matters more than it used to. Google's AI doesn't just skim a page. It reads it, understands it, and decides whether the content actually answers someone's question. If someone asks "what's the best plumber in Hornsby?" and your page answers that kind of question clearly within the first few lines, you're in with a much better shot. Keep headings clear and simple, don't bury key information under walls of text, and make sure your ABN, phone number and address are easy to find. Paid ad costs also jumped 19% in 2025, which makes getting your organic presence right even more important. The businesses that do best in 2026 treat their website like a living thing: updated, refreshed, and easy for both people and AI to understand.

Tell your story, and sell more because of it

Ina Cadorin, our storytelling expert on the panel, puts it simply:

"People don't just buy what you sell, they buy why you do it and who you are."By Ina

With AI-generated content flooding the internet, customers are getting noticeably better at spotting the difference between something real and something churned out by a machine. It's also a fair question to ask whether traditional SEO still earns its place alongside all this, which we cover in is SEO still worth it in the age of AI search. That's an advantage for small business owners: you have a real story, whether it's why you started the business, something that happened with a customer last week, or a look behind the scenes at how you actually do the work. Honest, personal content, a bit rough around the edges, is exactly what builds trust in a way a polished corporate ad can't.

Video is king, but you don't need a film crew

Video engagement in Australia jumped 41% in the past year. A quick phone video showing how you make your product, a short clip of your team at work, or a 30-second chat about what's new in the shop: that content performs. Instagram Reels, YouTube Shorts and TikTok all reward this kind of content and actively push it in front of more people. Facebook still matters too, especially for an older customer base, local community groups and event promotion. Across every platform the pattern is the same: keep it short, make it interesting in the first second or two, and post regularly.

TikTok Shop has arrived, and it matters for product businesses

If you sell physical products, this is probably the most significant shift in this whole update. TikTok Shop lets people buy directly through TikTok, with no separate website visit required. A customer watches a video, taps the product, and buys it right there. TikTok is no longer just an entertainment app: 74% of Gen Z consumers now use it as a search engine, and more than half prefer it to Google. If your customers skew younger, this is a channel that's genuinely hard to ignore now, and it doesn't require a big budget to get started, just content that feels natural on the platform.

Using AI without losing the human touch

AI tools aren't just for big companies anymore. Limon Ghosh, our digital strategy expert, has seen small businesses across Australia adopt genuinely affordable tools day to day: a chatbot that answers common customer questions after hours, or a tool that cuts social media post writing time in half. Most popular marketing platforms already have AI features built in, and specialist tools for website copy or SEO typically cost $80 to $300 a month, which is a reasonable investment if it saves real hours each week.

How people search has also changed. It's not just Google anymore. More people are asking ChatGPT and other AI tools to find what they need, so it's worth thinking about where your customers actually search and making sure you're visible there too, not just on Google.

"Adopt automation to handle the busywork, so you can focus on the human side of your business."By Limon

Limon's advice is worth taking seriously, but also comes with a caveat: don't download every shiny new tool that comes along. Ask whether it actually solves a problem you have. If it does, try it. If not, skip it. The goal isn't using as much tech as possible. It's using the right tech so you can spend more time on what actually grows the business.

Data privacy: why it matters more than ever

This one's less exciting than TikTok Shop, but getting it wrong can genuinely hurt your business. Australia's privacy laws have had their biggest shake-up in years, with more change coming. By the end of 2026, if your business uses any automated tool to make decisions about customers, even something as simple as an AI chatbot, you'll need to be upfront about that in your privacy policy. Businesses under $3 million turnover are currently mostly exempt from the full Privacy Act, but that exemption isn't expected to last indefinitely, so it's worth getting ahead of it now: be clear on your website about what data you collect and why, choose tools and platforms that take privacy seriously, and treat customer information the way you'd want your own handled.

The bottom line

The digital world is changing fast, but it's not as intimidating as it sounds. You don't need to understand every new technology. You need to know what's changing, pick what makes sense for your business, and act on it. Start by making sure you're easy to find online, especially now that AI is doing a lot of the searching for people. Layer on genuine storytelling and show up on social media in a way that feels real. If you sell products, look seriously at TikTok Shop. And if repetitive tasks are eating your week, look at what AI tools can take off your plate, while keeping an eye on the privacy side as automation grows. 2026 is shaping up to be a big year for Australian small business, and the ones taking a few smart, deliberate steps now are the ones who'll come out ahead.

Want help turning any of this into an actual plan for your business? Our AI Marketing service and a free strategy session are both good places to start.