E-commerce

The changing role of social media for start-ups in 2026

In my daily interactions with founders and small-business owners a theme that is comes up with increasing frequency is the rising cost of acquisition of social media for marketing.

In the early days, while they sought traction, the platforms offered businesses with a restricted budget a great opportunity to establish their brand and advertise their product or service at little to no cost.

Now, however, having amassed hundreds of millions – and, in some cases, billions – of followers, they are now becoming a lot more expensive. The algorithms have changed, and small-business owners fear they are being squeezed.

So, I spoke to four people with ‘skin in the game’ – experts with great experience in helping small businesses establish their brand and scale-up by leveraging social media. I asked them which platforms work best for who in 2026 and, more fundamentally, if social media still works for small businesses given its rising cost of acquisition.

First up I talked to Jessica Gordoun, the co-founder and managing director of Ranged. Jessica’s background is retail strategy, commercial buying and sales. Working across the full product lifecycle – from concept to shelf – has given Jessica a clear understanding of what it takes to succeed in retail. Ranged creates new pathways for brands to thrive in store and beyond. Jessica’s clients are social-led brands that represent the grocery, confectionery and health and beauty sectors.

The role the 2026 ‘version’ of social media plays in establishing brand awareness

Paid social media campaigns are just one of many approaches available to businesses today. Influencers, TikTok videos and self-funded experiental posts are all cost-effective ways of building brand awareness. In 2026, Jessica sees social media as less about perfectly curated grids and more about proof of demand.

“Retailers aren’t only paying attention to follower count, but also engagement, repeat purchase behaviour and genuine new community traction that is being mobilised into their stores,” she says. “TikTok, influencer partnerships and founder-led content can create visible brand momentum at a relatively low cost. This is especially the case for emerging FMCG brands that may not have large advertising budgets but can create a direct connection and conversation with their customers.”

Jessica points out that when a product goes viral, it reduces perceived risk for buyers. “It shows that customers are already seeking out the product and sharing it,” she explains. “That can quickly build brand awareness, generate sales momentum and help with any retail ranging conversations.”

However, she is also adamant that virality alone doesn’t always equal retail success. The brands Jessica  sees scaling well use social media to validate product-market fit, refine their messaging, test via DTC and build a loyal customer base before even entering retail.

How social-media marketing/advertising can help you scale up

In a brand’s early days, Jessica insists the focus of social media should be building community. Then, as it becomes more established, there needs to be a shift towards reinforcing trust and driving consistent customer acquisition. “Community still matters, but now it needs to convert to in-store sales,” she says. “We often see brands use retail wins as content – ‘available in Coles’ or ‘now in Woolworths’. That strengthens social proof, which in turn drives in-store traffic. A retail presence builds credibility and social media amplifies it.”

The key for Jessica here is alignment. “Messaging on social needs to reflect what’s happening on shelf – pricing, promotions and availability,” she explains. “As brands scale, social media should be treated as an extension of the commercial strategy, not a separate marketing channel. It should help secure new stockists, sell more product, tie up with in-store execution and drive growth.

Strategic collaborations are another tool Jessica recommends. “Limited-edition partnerships tap into complementary audiences and create brand moments that drive real spikes in demand,” she says. “We have found the largest Reel uplifts come from product collaboration posts.”

The social media platforms that give start-ups the best ROI

Based on her work with brands in the FMCG space, Jessica sees TikTok and Instagram as a great starting point for new founders. “They allow you to show your product in context, educate audiences and build community – often organically and without large budgets,” she explains. “Founder and team-led content can be especially powerful in the early stages.

“For those founders looking to have their brands stocked in retail stores, keep in mind that buyers are looking for signs of sustained demand,” Jessica adds. “Inflated follower numbers aren’t everything. It’s more about engagement, repeat purchase behaviour, whether customers are actively seeking out your product and are genuinely new to the retail category.

In summary, Jessica believes the best ‘bang for buck’ for small businesses and start-ups comes from using social media to prove traction. “If you can show that customers already love your product, retail expansion becomes a much easier conversation,” she concludes.

• This article is part one of a four-part series from the Inside Small Business magazine, Issue 52, feature titled “Is the rising cost of acquisition pricing small businesses out of the social media landscape?”