Lyla Lindsey
The advertising industry in Australia is huge, with ad spending forecasted to reach US$20.74 billion in 2025. The industry has seen a significant shift towards digital platforms, with companies increasingly investing in online campaigns to reach tech-savvy consumers. In 2021, the overall amount spent on advertising in Australia was AU$17.3 billion, with AU$10 million spent on internet advertising. Video advertisement spending recorded a 48% growth in 2021, climbing to AU$2.9 billion. The biggest advertisers in Australia include Harvey Norman, Woolworths, and Wesfarmers.
| Characteristics | Values |
|---|---|
| Ad spending in Australia's Advertising market in 2025 | US$20.74bn |
| Largest market | Search Advertising |
| Market volume of Search Advertising in 2025 | US$6.53bn |
| Average ad spending per capita in the In-App Advertising sector in 2025 | US$243.30 |
| Revenue generated through programmatic advertising in 2029 | 90% |
| Number of businesses in the Online Advertising industry in Australia | 652 |
| Market size of the Online Advertising industry in Australia in 2025 | $17.1bn |
| CAGR of the Online Advertising industry in Australia between 2020 and 2025 | 8.2% |
| Biggest companies in the Online Advertising market in Australia | Google Australia, Facebook Australia, and REA |
| Company with the most market share in Australia | Google Australia |
| Competition in the Online Advertising industry in Australia | Moderate and increasing |
| Market size of the Advertising Agencies industry in Australia in 2025 | $3.7bn |
| Number of businesses in the Advertising Agencies industry in Australia | 9,232 |
| Biggest companies in the Advertising Agencies market in Australia | Omnicom Media, Multi Market Services Australia, and WPP AUNZ |
| Company with the most market share in Australia in the Advertising Agencies industry | Omnicom Media |
| Competition in the Advertising Agencies industry in Australia | High and increasing |
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What You'll Learn
Video ads are the future
The advertising industry in Australia is worth billions of dollars. In 2021, the total amount spent on advertising campaigns was AU$17.3 billion, with AU$10 million of that being spent on internet advertising. It is projected that ad spending in Australia will reach US$20.74 billion in 2025.
The industry is currently undergoing a shift towards digital advertising, with companies increasingly investing in online campaigns to reach tech-savvy consumers. This transition is creating growth opportunities for advertising agencies. In 2025, 78% of total ad spending in Australia is expected to come from digital channels, with 90% of revenue generated through programmatic advertising.
Video ads are at the forefront of this shift to digital. In 2021, the video advertisement industry recorded a 48% growth rate, the highest of any advertising medium, reaching a value of AU$2.9 billion. This growth is expected to continue, with in-game ads predicted to bring significant changes to the industry by 2024.
The success of video advertisements is evident, with nearly every adult in Australia watching television commercials at least once a month. The integration of artificial intelligence has also improved customer engagement for IT companies, further enhancing the effectiveness of video ads.
As the market becomes increasingly crowded, with the entrance of players like Amazon, traditional media companies face the challenge of adapting to the digital landscape. This includes embracing new technologies such as virtual and augmented reality, which will shape the future of advertising.
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Digital advertising is on the rise
The advertising industry in Australia is worth billions of dollars. In 2021, the total amount spent on advertising campaigns was AU$17.3 billion, with AU$10 million of that going to internet advertising.
Digital advertising revenue is projected to reach US$13.9 billion in 2025, with the largest market being search advertising, which will have a market volume of US$6.2 billion. Within the advertising market, 78% of total ad spending will come from digital channels in 2029. The average ad spending per capita in the In-App Advertising sector is expected to be US$243.30 in 2025.
The pandemic has accelerated the adoption of digital platforms, and this trend is expected to continue driving the growth of the Digital Advertising market in the coming years. The number of internet users has grown from 2.3 billion in 2012 to 5.1 billion in 2022, and this shift in consumer behaviour has been reflected in the advertising industry.
Video advertisements are also experiencing significant growth, with a 48% increase in one year, reaching 2.9 billion dollars. Australian marketers are planning to increase their remarketing budgets in the coming years, with 50% of all advertising spending going to online, digital advertisements.
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Traditional advertising is still popular
Australia's advertising market is experiencing a shift towards digital platforms, with companies increasingly investing in online campaigns to reach tech-savvy consumers. However, traditional advertising remains popular and is still favoured by many advertisers.
In 2021, the overall amount of money spent on advertising in Australia was AU$17.3 billion, with money distributed across traditional and digital platforms. While 50% of all money spent on advertising goes to online, digital advertisements, the other half is dedicated to traditional advertising. In fact, there has been a 6% growth in the traditional advertisement industry, demonstrating its continued popularity.
Print advertising campaigns are the largest segment of the advertising agencies in Australia. Traditional out-of-home advertising methods, such as billboards and street furniture, are also popular in Australia. This is due to their ability to reach a wide audience, their high visibility, and the fact that they can be physically interacted with. The integration of traditional out-of-home advertising with other media channels, such as social media and mobile advertising, creates a cohesive and impactful advertising strategy.
Traditional TV advertising is also experiencing growth in Australia. This is driven by customer preferences, trends in the market, local circumstances, and underlying macroeconomic factors. Australia's stable economy and high consumer spending power provide opportunities for businesses to invest in TV advertising. The diverse range of TV channels and fair competition regulations also create an attractive environment for advertisers.
While digital advertising is on the rise, traditional advertising remains a significant component of the Australian advertising industry, with advertisers utilising a wide variety of means to reach their audience.
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Ad spend in Australia
Ad spending in Australia's advertising market is projected to reach US$20.74 billion in 2025, with the largest market being search advertising, expected to reach a volume of US$6.53 billion. This represents a significant increase from the overall amount spent on advertising in 2021, which was AU$17.3 billion, including AU$10 million spent on Australian internet advertising. The shift to digital advertising is driving the growth, with 78% of total ad spending expected to come from digital channels in 2029. This is reflected in the Australian online advertising market, which reached $3.455 billion in the quarter ending 30 September 2022, an increase of 6.5% from the same period in 2021.
The growth in digital advertising is attributed to the increasing use of digital media and mobile advertising, as well as the rise of programmatic advertising. Digital advertising services are surging, while traditional advertising channels are in decline. This shift is also influenced by the COVID-19 pandemic, which accelerated the transition to digital alternatives for TV, radio, out-of-home (OOH) advertising, and publishing. Forecasts suggest that digital OOH advertising revenue will increase by 10.3% annually until 2026, while physical OOH advertising will decrease by 1.5%.
Within the digital landscape, video advertisements have seen remarkable growth. In 2021, the video advertisement industry in Australia grew by 48%, reaching $2.9 billion. This growth is expected to continue, with in-game ads predicted to bring significant changes to the industry by 2024. Additionally, artificial intelligence (AI) is playing a pivotal role in improving customer engagement and reaching target groups, further enhancing the effectiveness of digital advertising campaigns.
Despite the overall growth in ad spending, the Australian advertising market is expected to slow down. PwC forecasts indicate that growth will decelerate to 4.5% in 2023, levelling off in subsequent years. However, this will still result in a projected $7.32 billion increase in annual spending by 2026 compared to pre-pandemic levels, highlighting the resilience of the industry and the ongoing competition for consumer attention.
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Australia's top advertisers
Australia's advertising industry is significant, with an overall spend of AU$17.3 billion in 2021, including AU$10 million on internet advertising. The industry is moving towards digital advertising, with 50% of all advertising money already spent on online, digital advertisements. In 2025, it is forecasted that 78% of total ad spending will come from digital channels.
The largest market segment for advertising in Australia is search advertising, with a market volume of US$6.53 billion forecasted for 2025. The average ad spending per capita in the In-App Advertising sector is expected to be US$243.30 in 2025.
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Frequently asked questions
In 2021, the total amount spent on advertising in Australia was AU$17.3 billion, with AU$10 million of that being spent on internet advertising. In 2022, the Australian online advertising market reached $3.455 billion for the quarter ending on September 30, 2022.
In 2021, traditional advertising saw a 6% growth in Australia, with 67% of people saying they preferred online advertisements. The biggest growth was in video advertisements, with a 48% increase in one year, climbing to 2.9 billion dollars. Search and display advertising also posted large gains, with 35% and 57% increases, respectively.
The company that spends the most on advertising in Australia is Harvey Norman, followed by Woolworths and Wesfarmers.
