Advertising spend reaches $17.2billion for FY2025
Driven by the summer Olympics and election spend, the Australian internet advertising market has continued its steady growth, increasing 10.6% year on year to reach $17.2bn 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%, video advertising has been the growth engine for the market and now represents 29% of all spend.
The Report found that all video formats experienced double digit growth year on year, with total video advertising increasing 21.9% year on year to reach $5.0bn. Video displayed on social platforms increased 36.7% year on year and now represents 38% of total video expenditure at $1.9bn. BVOD video increased 18.3% to reach $500m and other video advertising, which represents 52% of video advertising, increased 13.5% to reach $2.6bn.
Audio advertising grew 14.1% year on year to reach $331m, representing 4.7% of total general display advertising, while non-video general display advertising including infeed/native and standard display advertising marginally declined year on year.
Gai Le Roy CEO of IAB Australia commented: “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% for the digital video ad market.”
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% share of spend. Finance expenditure also increased in the same period to 8.6% share, with the other top categories of automotive, retail and entertainment & 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% in FY24 to 37% in FY25. CTV investment remains the largest component of this part of the market at 51% share for FY25, down slightly from 55% in 2025 and mobile also dropped from 16% to 12% for FY25.
Q2 – June Quarter 2025 Result Highlights
$4.6bn spend, an increase of 10.1% from the June 2024 quarter
Search advertising increased 10.7% to $2.059bn; video increased 25.4% to $1.368bn; display excluding video was up 0.7% to $516m and audio was up 8.5% to $86m. Classifieds decreased by 8.3% to $646m.
Election investment was the primary driver of growth for both video and general display advertising.
60% 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% for the quarter with the total audio advertising market in June 2025 worth $85.6m, representing 4.5% 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 & media, finance and health & beauty.
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Internet Advertising Expenditure – category share by financial year
Top Five Industry Categories in FY25 for General Display Advertising Expenditure
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About the Interactive Advertising Bureau
IAB an independent industry association with nearly 9,000 members globally spanning media owners, publishers, technology companies, agencies, and advertisers. It works to align industry stakeholders to develop solutions for the issues faced by the market and develop standards that are integral to the operation of digital advertising.
As one of 45 IAB offices globally, the role of the IAB is to support sustainable and diverse investment in digital advertising across all platforms in Australia as well as demonstrating to marketers and agencies the many ways digital advertising can deliver on business objectives.