The Australian digital advertising market has experienced notable growth, reaching $4.2 billion in the first quarter of 2025. This marks an 11.6% increase compared to the same period last year. Despite softer seasonal declines observed compared to 2024, the market saw significant gains largely driven by video and search advertising. Video advertising soared by 23.3%, tallying $1.165 billion, while search advertising climbed 10% to reach $1.896 billion. Additionally, classified listings showed a 7.8% increase, particularly due to heightened demand in real estate, totaling $660 million. Audio advertising advances rose by 18% to $77.3 million.
Gai Le Roy, CEO of IAB Australia, emphasized the robust growth across video, search, social, and audio platforms amid some uncertainties around long-term market planning. While retail and automotive sectors remained key contributors to display advertising, their share saw a slight decrease. Desktop advertising gained ground among content publishers and local broadcasters, whereas Connected TV (CTV) maintained its dominant position in the market.
This report illustrates the dynamic landscape of Australia’s digital advertising sector, highlighting areas of diverse growth and underscoring cautious optimism amid current economic conditions. As these trends continue, the market’s evolution depends on broader forces shaping consumer habits and technological advancements.
