The Australian advertising market is forecast to accelerate to 6.5% to $30.7 billion in 2026, according to WPP Media’s 2025 Global This Year Next Year end of year report.
This is an improvement of the expected 5.2% in 2025 and outpaces the broader economy, with GDP growth projected at 1.8%.
The forecast for Australia is more upbeat than analysts at Dentsu who see advertising spend growth in Australia moderating to 4.1% in 2026. This is down, despite uplift from global sporting events, on the 2025 number of 4.5%, which was boosted by the federal election.
However, Melissa Hey, chief investment officer, WPP Media ANZ, said the Australian advertising market has demonstrated resilience and adaptability.
“The structural shift continues as investment continues to move away from traditional linear channels and into digital ecosystems, reshaping how brands connect with audiences.
“While the broader economy wrestles with modest GDP growth and stubborn inflation, advertising investment is accelerating,” she said.
“The story behind the numbers is compelling. Advertising is no longer the domain of big brands alone. Small businesses are driving this surge.
“While their spend is modest, the sheer amount of them using social and search platforms as their core marketing channel is shifting the dial as they compete for customers in a cluttered landscape.”
Pure-play internet now accounts for 75.9% of total ad revenue, and projections indicate this will continue to climb, which will lead to more audience first strategies.
WPP Media sees retail media continue to fuel performance planning and have the biggest increase of share of investment over next five years.
“Looking ahead, 2026 promises continued digitisation, and a market increasingly shaped by agile, data-driven investment decisions,” said Hey.
WPP’s updated forecast projects global advertising revenue will grow 8.8% (7.5% including US political advertising) in 2025 to $1.14 trillion, with 7.1% growth in 2026 (or 7.7% including US political advertising).
WPP Media's Australia forecasts:
The Australian advertising market is forecast to grow 5.2% in 2025, reaching AUD $28.9 billion, and accelerate to 6.5% in 2026 (AUD $30.7 billion).
This growth outpaces the broader economy, with GDP growth projected at just 1.8% in mid-2025.
Pure-play internet advertising is 75.9% of total ad revenue, expected to climb to 83.5% by 2030.
Retail Media is the fastest-growing channel and is forecast to expand 28.1% in 2025 and 24.4% in 2026.
Retail media will surpass total TV ad revenue for the first time in 2027, a major industry milestone.
Search advertising will grow 10.2% in 2025 and 9.1% in 2026 maintaining a 23% share of total ad revenue. Growth is driven by AI-powered search optimisation and new ad formats.
TV and streaming ad revenue will fall -8.7% in 2025 and another -5.1% in 2026
Audio ad revenue (including Digital & Podcasts) up 1.1% in 2025 and 0.7% in 2026; digital audio (including podcasts) is offsetting radio declines.
Print continues to decline: newspaper ad revenue down 17.4% in 2025 and 9.1% in 2026; magazines down 2.9% and 2.3%.
Out-of-home (OOH) advertising will grow 8.2% in 2025 and 6.2% in 2026
Cinema ad revenue to grow 5.2% in 2025; remains a niche, premium environment.
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