Video advertising grew 19.8% to $5.4 billion in Australia in 2025, accounting for 29% of total online advertising investment, according to the IAB Australia 2026 Video Advertising State of the Nation Report.
The report, based on a survey of 78 advertising agency decision makers conducted in April, found investment intent in video remains strong across a growing range of formats and environments.
But economic uncertainty is creating a nervous market, with 48% of agency leaders naming the economy as their leading concern, ahead of cross-channel measurement and the impact of AI, each cited by 41%.
Gai Le Roy, CEO of IAB Australia, said advertisers were not retreating from video despite the cautious conditions.
"Advertisers are operating in a more cautious market, but they are not pulling back from investment in video advertising," Le Roy said.
"They do, however, have stronger expectations of media accountability and a continued need to balance brand and performance investment.
"The next phase of growth in video advertising will depend on how well the industry can support advertisers with consistent measurement, and better visibility across an increasingly complex media environment."
The report found a gap between how video is planned and how it is measured. While 9 in 10 agencies have a unified strategy for planning video campaigns across screens, 25% rarely or never unify effectiveness measurement across those same screens.
Brand metrics remain the most cited measure of campaign success at 80%, yet only 49% rate sales metrics as important — despite driving sales and conversions being the top stated investment goal for 2026, cited by 49% of respondents.
Natalie Stanbury, director of research at IAB Australia, said the inconsistency of data signals across video environments was a central challenge.
"The research shows buyers are moving towards more advanced outcomes measurement, but the consistency of data signals still varies across video environments," Stanbury said.
"That matters when advertisers are being asked to compare investment across BVOD, social video, AVOD and ad-supported streaming platforms.
"The work the industry is doing today on unified measurement standards, consistent creative tracking and cross-platform measurement frameworks is critical to supporting the next stage of video advertising growth in a multi-platform environment."
AI is expected to play a growing role in addressing measurement and optimisation. The report references IAB US research finding that AI-driven improvements in advanced measurement could unlock $US26 billion in total media investment within two years by more accurately crediting what is working across channels.
Vikki Pearce, head of digital at Zenith and IAB Australia Video Council co-chair, said the challenge in 2026 was not ambition but operating conditions.
"Video continues to earn its place as one of the most strategic parts of the media mix because it can genuinely do both jobs: build brands and drive outcomes," Pearce said.
"What's changing in 2026 is not the ambition, but the operating environment. Buyers are navigating more platforms, more formats, and more ways to activate, from streaming and CTV to live moments and creator-led ecosystems, while still being accountable for performance."
Seventy-one per cent of ad buyers expect to increase spend on ad-supported subscription streaming platforms this year, 46% intend to increase investment in programmatic CTV, and 63% of digital video ad buyers have used video creators and talent as part of their marketing strategy.
Retail and video are also converging, with 54% of respondents regularly using or testing retailer first-party shopper data to target video campaigns.
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