Meta ad costs rise for Brazilian advertisers due to taxes

Brazilian advertisers using Meta platforms have faced an average cost increase of 12.15% since January 1, 2026. This rise follows Meta's decision to pass federal taxes, such as PIS/Cofins and ISS, directly to clients rather than absorbing them.

Data from Google Ads indicates varying costs across sectors, with the legal profession leading in cost-per-click at an average of US$ 8.58. The real estate sector has seen the highest annual increase in cost-per-click at 27.27%, followed by personal services and the health and fitness sectors.

Gabriel Brown, co-founder of Skill-Hub, notes that ad auctions price the purchasing power of the target audience rather than the product itself. He also highlights a ‘second auction’ occurring during lead follow-ups, such as on WhatsApp, where success depends on response time rather than ad spend.