The Australian internet advertising market, driven by the summer Olympics and election spend, closed the financial year to June up 10.6% to $17.2 billion.
The IAB Australia Internet Advertising Revenue Report 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.
All video formats experienced double digit growth year on year, with total video advertising increased 21.9% to $5 billion.
Video displayed on social platforms increased 36.7% and now represents 38% of total video expenditure at $1.9 billion.
BVOD video increased 18.3% to $500 million and other video advertising, which represents 52% of video advertising, increased 13.5% to $2.6 billion.
Audio advertising grew 14.1% to $331 million, 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.
“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,” said Gai Le Roy, CEO of IAB Australia.
“The continued increase in video consumption as well as the 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 to 8.6% share, with the other top categories of automotive, retail and entertainment and media all experiencing a softening of share, 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 to 37% from 29% in the 2024 financial year.
CTV investment remains the largest component of this part of the market at 51% share, down slightly from 55% in 202. Mobile also dropped to 12% from 16%.
In the June quarter, spend increased 10.1% to $4.6 billion compared to same quarter last year.
Search advertising increased 10.7% to $2.059 billion; video was up 25.4% to $1.368 billion; display excluding video was up 0.7% to $516 million and audio up 8.5% to $86 million.
Classifieds decreased by 8.3% to $646 million.
Sixty per cent 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 $85.6 million, 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.
Internet Advertising Expenditure – category share by financial year
Top Five Industry Categories in FY25 for General Display Advertising Expenditure
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