Driven by the summer Olympics and election spend, the Australian internet advertising market has continued its steady growth, increasing 10.6 per cent year on year to reach $17.2 billion for FY25.
The data which comes from the IAB Australia Internet Advertising Revenue Report (IARR) released today, also found that while Search maintains the largest share of online advertising at 44 per cent, video advertising has been the growth engine for the market and now represents 29 per cent of all spend.
The Report found that all video formats experienced double digit growth year on year, with total video advertising increasing 21.9 per cent year on year to reach $5.0bn.
Video displayed on social platforms increased 36.7 per cent year on year and now represents 38 per cent of total video expenditure at $1.9bn. BVOD video increased 18.3 per cent to reach $500m and other video advertising, which represents 52 per cent of video advertising, increased 13.5 per cent to reach $2.6bn.
Audio advertising grew 14.1 per cent year on year to reach $331m, representing 4.7 per cent of total general display advertising, while non-video general display advertising including infeed, native and standard display advertising marginally declined year on year.
“It is pleasing to again see solid growth in investment in digital advertising in FY25. Brands, large and small, are using advertising investment as a way of assisting growth. The continued increase in video consumption as well as range of video ad products has underpinned the increase of nearly 22 per cent for the digital video ad market,” commented Gai Le Roy, CEO of IAB Australia.
FMCG expenditure increased year on year, heavily orientated towards video advertising and it is now in the top five display advertiser investment categories with 6.4 per cent share of spend. Finance expenditure also increased in the same period to 8.6 per cent share, with the other top categories of automotive, retail and entertainment and media all experiencing a softening of share, albeit based on a larger overall spend.
Desktop advertising share of content publishers and local broadcasters’ video inventory expenditure reached a new peak for the year, increasing from 29 per cent in FY24 to 37 per cent in FY25. CTV investment remains the largest component of this part of the market at 51 per cent share for FY25, down slightly from 55 per cent in 2025 and mobile also dropped from 16 per cent to 12 per cent for FY25.
Q2 – June quarter 2025 result highlights
- $4.6bn spend, an increase of 10.1 per cent from the June 2024 quarter
- Search advertising increased 10.7 per cent to $2.06bn; video increased 25.4 per cent to $1.37bn; display excluding video was up 0.7 per cent to $516m and audio was up 8.5 per cent to $86m. Classifieds decreased by 8.3 per cent to $646m.
- Election investment was the primary driver of growth for both video and general display advertising.
- 60 per cent of content publishers video inventory was bought programmatically in the June quarter, while buying via Agency (IO) continued to be the most popular buying format for content publishers display inventory.
- Podcasting’s share of total online audio advertising peaked at 41 per cent for the quarter with the total audio advertising market in June 2025 worth $85.6m, representing 4.5 per cent of the total general display advertising expenditure.
- The top five industry categories remain unchanged from June 2024, with retail benefiting from strong end of financial year spend to hold the greatest share, followed by automotive, entertainment and media, finance and health & beauty.
