The Australian internet advertising market grew 11.5 per cent year-on-year to reach $18.4 billion for the full calendar year 2025, according to the IAB Australia Internet Advertising Revenue Report (IARR).
The Report, prepared by PwC Australia, shows video advertising continues to be the strongest performing segment of the market, growing 19.8 per cent year-on-year to reach $5.4 billion.
Search advertising reached $8 billion in 2025, growing 11.5 per cent year-on-year and recording a new annual high.
Classifieds grew 5 per cent to $2.9 billion, while display advertising, excluding video, increased 1.9 per cent to $2.1 billion.
Audio advertising reached $339 million, up 8.2 per cent year-on-year with podcasting growth outpacing steaming audio.
Video contributed the largest share of growth within display advertising during 2025, with social video increasing its share of total video expenditure.
Social video accounted for 40 per cent of total video investment for the calendar year, increasing 35.1 per cent 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 per cent of total online advertising expenditure.
Across buying methods for content publishers’ display inventory, agency buying via insertion order increased its share during 2025, while programmatic buying lost share during the peak Australian sporting season period.
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 for content publishers and media owners for the fifth year, 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.
“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,” said Gai Le Roy, CEO of IAB Australia.
“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.”
The Report also includes results for the December 2025 quarter, with total internet advertising expenditure of $4.9 billion, up 14.4 per cent compared to the December 2024 quarter. Video advertising for the quarter grew 15.4 per cent year-on-year, continuing to outperform non-video display formats.
