The Australian internet advertising market grew 11.5% year-on-year to reach $18.4 billion for the full calendar year 2025, according to the IAB Australia Internet Advertising Revenue Report (IARR) released today.
Audio internet advertising reached $339 million, up 8.2% year-on-year, with podcasting growth outpacing steaming audio.
Video contributed the largest share of growth within display advertising, with videos on social media platforms increasing their share of total video expenditure. Social video accounted for 40% of total video investment for the calendar year, increasing 35.1% year-on-year, alongside continued investment across BVOD and other video environments.
Video’s share of the overall online advertising market continues to increase and now represents 29% of total online advertising expenditure and continues to be the strongest performing segment of the market, growing 19.8% year-on-year to reach $5.4 billion.
Search advertising reached $8.0 billion in 2025, growing 11.5% year-on-year and recording a new annual high.
Online Classifieds grew 5% to $2.9 billion, while online display advertising, excluding video, increased 1.9% to $2.1 billion, according to the Report, prepared by PwC Australia.
Connected TV continued to increase its share of content publishers’ video inventory during 2025, reaching a new peak, supported by high-demand viewing environments associated with major sporting events.
Retail remained the leading industry category for reported general display advertising, followed by automotive and entertainment and media.
Financial products and services, including insurance, experienced the largest increase in share during the year, while home products entered the top five industry categories for the first time.
IAB Australia CEO Gai Le Roy, said:
“The 2025 results show a market that is growing, but selectively. Overall investment increased strongly, driven primarily by video and search, while other display environments saw more modest movement. Social video and podcasting continue to outperform the market.
“While the large media agencies remain important drivers of scale, we’re also seeing strong investment from independent agencies, high-growth brands managing their own media, and SMEs. Established advertisers continue to expand in-house capability, and we’re seeing increased investment from Chinese and other international brands seeking to connect with Australian audiences.”