WPP Media has released its This Year Next Year 2025 Global End-Of-Year forecast, detailing Retail Media is the fastest-growing channel in Australia. It is forecasted to expand 28.1 per cent in 2025 and 24.4 per cent in 2026.
This growth will see retail media surpass total TV ad revenue for the first time in 2027.
On the other side of the coin, WPP is forecasting that TV and streaming ad revenue will fall 8.7 per cent in 2025 and another 5.1 per cent in 2026. This is even though Australia has a very strong sports rights portfolio with AFL, NRL and cricket to say the least.
The broader APAC market is set to move in the opposite direction. The region that represents 31.6 per cent of global ad revenue, boasting four of the top 10 markets: China, Japan, India, and Australia, is expected to grow ad revenue 6.4 per cent in 2025 to $361.8 billion (AUD $ 544.9 billion), and a further 6.6 per cent in 2026.
The end-of-year This Year Next Year report revises its outlook for 2026 upward from its midyear projections.
Looking globally, the updated forecast projects global advertising revenue will grow 8.8 per cent (7.5 per cent including U.S. political advertising) in 2025 to $1.14 trillion (AUD $1.7 trillion), with 7.1 per cent growth in 2026 (or 7.7 per cent including U.S. political advertising). Advertising is growing ahead of global GDP this year.
WPP Media’s End-of-Year report offers a fresh perspective on how global trends in culture, commerce, government, and tech are shaping the industry, and what that means for marketers in the months and years to come.
AI, of course, is one of the biggest drivers of disruption. After a few years of anticipating change, WPP are now getting a clearer picture of how it is transforming content creation, media planning, measurement, and consumer interaction. Interestingly, the advertising industry has a head start since it’s been integrating machine learning into the business even prior to generative AI hitting the scene.
“As we close out 2025, the Australian advertising market has demonstrated resilience and adaptability. The structural shift continues as investment continues to move away from traditional linear channels and into digital ecosystems, reshaping how brands connect with audiences. While the broader economy wrestles with modest GDP growth and stubborn inflation, advertising investment is accelerating,” said Melissa Hey, chief investment officer, WPP Media ANZ.
“The story behind the numbers is compelling. Advertising is no longer the domain of big brands alone. Small businesses are driving this surge. While their spend is modest, the sheer amount of them using social and search platforms as their core marketing channel is shifting the dial as they compete for customers in a cluttered landscape.
“Meanwhile, pure-play internet now accounts for 75.9 per cent of total ad revenue, and projections indicate this will continue to climb, which will lead to more audience first strategies. We will see retail media continue to fuel performance planning and have the biggest increase of share of investment over next 5 years. Looking ahead, 2026 promises continued digitisation, and a market increasingly shaped by agile, data-driven investment decisions.”
Key Aussie Findings
Pure-play internet advertising is 75.9 per cent of total ad revenue and is expected to climb to 83.5 per cent by 2030.
Search Advertising will grow 10.2 per cent in 2025 and 9.1 per cent in 2026 maintaining a 23 per cent share of total ad revenue. Growth is driven by AI-powered search optimisation and new ad formats.
Audio ad revenue (inc Digital and Podcasts) are up 1.1 per cent in 2025 and 0.7 per cent in 2026; digital audio (including podcasts) is offsetting radio declines.
Print continues to decline with newspaper ad revenue down 17.4 per cent in 2025 and 9.1 per cent in 2026. Magazines are also down 2.9 per cent and 2.3 per cent.
Out-of-home (OOH) advertising will grow 8.2 per cent in 2025 and 6.2 per cent in 2026
Cinema ad revenue remains a niche, premium environment as it is set to grow 5.2 per cent in 2025.
