Video now represents 29% of total expenditure
The Australian internet advertising market grew 11.5% year-on-year to reach $18.4 billion for the full calendar year 2025, according to the IAB Australia Internet Advertising Revenue Report (IARR) released today.
The Report, prepared by PwC Australia, shows video advertising continues to be the strongest performing segment of the market, growing 19.8% year-on-year to reach $5.4 billion. Search advertising reached $8.0 billion in 2025, growing 11.5% year-on-year and recording a new annual high. Classifieds grew 5% to $2.9 billion, while display advertising, excluding video, increased 1.9% to $2.1 billion. Audio advertising reached $339 million, up 8.2% 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% of total video investment for the calendar year, increasing 35.1% 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% 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.
Gai Le Roy, CEO of IAB Australia, said: “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.
“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,” said Le Roy.
The Report also includes results for the December 2025 quarter, with total internet advertising expenditure of $4.9 billion, up 14.4% compared to the December 2024 quarter. Video advertising for the quarter grew 15.4% year-on-year, continuing to outperform non-video display formats.
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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.