Australia's advertising market is expected to grow 4.1% in 2025, according to mid-year forecasts by WPP Media (formerly GroupM).
The outlook is slightly stronger than the 3.7% forecast in December 2024.
“As we navigate 2025, we're seeing a landscape of cautious optimism for Australia's advertising market,” said Melissa Hey, WPP Media chief investment officer.
“We anticipate a healthy 4.1% growth, buoyed by the federal election and a continued appreciation for quality content.
“While economic realities temper our optimism, it's heartening to see inflation stabilizing, even as we remain mindful of global uncertainties.
“Looking ahead, digital channels will underpin sustained growth through to 2030, with key trends like AI-powered technologies and Influencer shaping the landscape. Our mid-year outlook reflects that Australia is a resilient market navigating global economic shifts."
The 2025 outlook for Australia:
- Internet: (excluding digital offshoots of traditional channels) is forecast to grow 6.7% to $A20.94 billion in 2025. Search advertising is forecast to grow 4.4% to$6.2 billion.
- Retail Media: To grow 28.1%to $1.91 billion.
- Total Television: Overall decline of 6.9% to $3.25 billion. Video On Demand (VOD) is projected to lift 18.8% to $688 million.
- Audio: Overall audio market will increase just over 1% through 2030. For 2025, growth is projected at 1.3% to $1,306 million.
- Cinema: A 4.8% increase in cinema advertising revenue to $132 million.
- Out-of-home (OOH): Up by 5.2% to $1.36 billion.
The global Mid-Year Global Advertising Forecast for 2025 by WPP Media cites disruptions to trade and continued de-globalisation pressures weighing on advertising investment.
Analysts downgraded their 2025 global ad spend forecast to 6% growth from the 7.7% predicted in December 2024.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.