The Australian internet advertising market recorded its strongest March quarter, up 15.3 per cent to $4.9 billion, according to the IAB Australia’s Internet Advertising Revenue Report prepared by PwC.
The result is within 1 per cent of the record December 2025 quarter, effectively eliminating the traditional seasonal March quarter pullback.
Video was the fastest growing major segment, up 20.4 per cent to $1.4 billion, with social video the fastest growing sub-segment at 29.4 per cent.
BVOD grew 10.1 per cent. Video now accounts for 73.2 per cent of total display expenditure.
Gai Le Roy, CEO of IAB Australia, said growth was coming from a broader base of advertisers than previously, including SMEs, commerce-led businesses and new international entrants.
“Video continues to be the standout performer and search is also accelerating, however the results suggest advertisers are continuing to concentrate spend in a relatively narrow set of environments, despite the important role broader premium content ecosystems play in long-term brand growth and reaching audiences in trusted contexts,” she said.
Meanwhile, Search and Directories remained the largest segment at $2.16 billion, up 13.9 per cent – the fastest growth rate since the 2022 COVID recovery – representing about 44 per cent of the total market.
Classifieds grew 13.9 per cent to $787 million. Audio was up 8.3 per cent to $83.5 million, with podcasting 12.6 per cent higher at $32.6 million outperforming streaming audio, which grew 5.7 per cent to $50.9 million.
Automotive recorded the largest increase in share of general display year-on-year, up 1.7 percentage points, with new Chinese car brands now a visible presence in Australian digital advertising.
Retail increased share by 1.4 percentage points. Health and beauty, entertainment and media, and FMCG recorded the largest year-on-year share declines.



