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The internet advertising market in Australia grew 11.6 percent year-on-year in the first quarter of this year, reaching $4.2 billion.
For the quarter ended March 2025, the local market experienced a softer than usual seasonal decline in spend from the December quarter at -1.8 percent in 2025 versus -4.2 percent in 2024.
The data was revealed in the IAB Australia Internet Advertising Revenue Report (IARR) released earlier this week.
“The Australian digital advertising market again saw double-digit growth year-on-year in the March quarter, with strong increases in video, search, social and audio,” IAB Australia’s chief executive officer Gai Le Roy said.
“While we are seeing solid topline growth, there is still some nervousness in the market around long-term planning and brand investment, which should be tempered by any future interest rate cuts in coming months.”
Internet advertising focus areas
Advertising spend growth this quarter was mainly fuelled by video advertising, which was up 23.3 percent year-on-year to reach $1.165 billion. It now represents 28 percent of investment dollars.
Search revenue meanwhile increased 10 percent year-on-year to reach $1.896 billion, while Classified listing revenue increased 7.8 percent to reach $660 million, driven by the real estate category.
Social media, which has revenue allocated within both video and display, held a 17 percent share of the market.
Audio saw a 18 percent year-on-year increase to reach $77.3 million, while display advertising (excluding video) contracted 0.9 percent to land at $461 million.
Retail and auto remained the top two display advertiser investment categories at 17.1 percent and 12.9 percent, respectively, though their share declined marginally year-on-year.
Desktop advertising surged in its share of content publishers and local broadcasters’ video inventory expenditure this quarter, increasing from 32 percent in the December quarter to 42 percent of investment in the March quarter. However, CTV investment remains the largest component with a 46 percent market share.
