The Australian internet advertising market recorded its strongest March quarter, up 15.3% to $4.9 billion, according to the IAB Australia's Internet Advertising Revenue Report prepared by PwC.
The result is within 1% of the record December 2025 quarter, effectively eliminating the traditional seasonal March quarter pullback.
Video was the fastest growing major segment, up 20.4% to $1.4 billion, with social video the fastest growing sub-segment at 29.4%.
BVOD grew 10.1%. Video now accounts for 73.2% of total display expenditure.
Search and Directories remained the largest segment at $2.16 billion, up 13.9% — the fastest growth rate since the 2022 COVID recovery — representing about 44% of the total market.
Classifieds grew 13.9% to $787 million. Audio was up 8.3% to $83.5 million, with podcasting 12.6% higher at $32.6 million outperforming streaming audio, which grew 5.7% to $50.9 million.
Automotive recorded the largest increase in share of general display year-on-year, up 1.7 percentage points, with new Chinese car brands now a visible presence in Australian digital advertising.
Retail increased share by 1.4 percentage points. Health and beauty, entertainment and media, and FMCG recorded the largest year-on-year share declines.
Gai Le Roy, CEO of IAB Australia, said growth was coming from a broader base of advertisers than previously, including SMEs, commerce-led businesses and new international entrants.
“Video continues to be the standout performer and search is also accelerating, however the results suggest advertisers are continuing to concentrate spend in a relatively narrow set of environments, despite the important role broader premium content ecosystems play in long-term brand growth and reaching audiences in trusted contexts,” she said.
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