Leslie Massey
Australia's advertising market is evolving, with digital channels becoming increasingly prominent. In 2024, the total ad spend in Australia was $19.9 billion, with digital ad spend accounting for $14.5 billion, or 73.1% of the total. This shift towards digital reflects Australians' growing reliance on online shopping and their preference for mobile usage, with 97.6% of internet users aged 16+ owning a mobile phone and 97.5% owning a smartphone. Social media plays a significant role in Australia's digital ad strategy, with brands spending $4.26 billion on social media advertising in 2024, a 12.1% increase from the previous year. Facebook is Australia's most popular social network, with 66% of Australians using it monthly, and its users are among the most active advert clickers globally. However, traditional media still holds sway with advertisers, particularly in industries like automotive, finance, and travel and tourism, where television and newspaper advertising are favored over outdoor and digital static display ads.
| Characteristics | Values |
|---|---|
| Advertising expenditure in 2024 | $19.9 billion |
| Digital advertising expenditure in 2024 | $14.5 billion |
| Percentage of digital advertising expenditure in 2024 | 73.1% |
| Social media advertising expenditure in 2024 | $4.26 billion |
| Percentage of social media advertising expenditure increase from 2023 to 2024 | 12.1% |
| Percentage of internet users aged 16+ who own a smartphone | 97.5% |
| Percentage of internet users aged 16+ who own a laptop or desktop computer | 71.4% |
| Average time spent on computers and tablets | 3 hours and 7 minutes |
| Average time spent on mobile phones | 2 hours and 58 minutes |
| Australia's rank in social media advertising market size worldwide | 5th |
| Facebook's market share of the Australian social media advertising market | 80% |
| LinkedIn's market share of the Australian social media advertising market | 5% |
| Twitter's market share of the Australian social media advertising market | 5% |
| Pinterest's advertising audience reach in Australia | 21.5% of Australians aged 13+ |
| Australia's most popular social media platform | |
| Australia's B2B social media platform | |
| Australia's highest spending advertisers in 2023 | Harvey Norman, Woolworths, and McDonald's |
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What You'll Learn
Digital advertising is growing in Australia
Australia's advertising landscape is evolving, with digital advertising spending on the rise. In 2024, the total ad spend in Australia was $19.9 billion, of which $14.5 billion was allocated to digital channels, accounting for 73.1% of the total ad spend. This shift towards digital advertising is driven by Australians' increasing reliance on online shopping and their preference for digital marketing. With a highly connected population, Australia's digital ecosystem is characterised by extensive usage across mobile, desktop, and social media platforms.
The Interactive Advertising Bureau (IAB) Australia's Internet Advertising Revenue Report (IARR) for the financial year ending June 30, 2024, revealed a significant growth in the Australian internet advertising market, with total spending reaching $15.6 billion, a 9.7% increase year-on-year. Video and search formats are leading this surge, with video advertising growing by 18.6% to $4.1 billion, highlighting the importance of video content in digital marketing strategies.
Social media platforms play a pivotal role in Australia's digital ad strategy. In 2024, brands invested $4.26 billion in social media advertising, reflecting a 12.1% increase from the previous year. Social media is expected to continue its strong performance, with forecasts predicting an increase of 17% to AUD 8.9 billion in 2025. This shift towards social media is driven by mobile-first strategies and the emergence of new premium video entrants.
Digital advertising's dominance is further emphasised by the performance of leading digital advertisers in Australia. Proctor and Gamble, Hungry Jack's, Singtel, and Woolworths are among the top spenders in the digital advertising space. Google Ads, a popular pay-per-click (PPC) advertising strategy, enables advertisers to target specific regions and demographics in Australia, driving traffic to their websites.
As Australia transitions into 2025, the focus will be on embracing digital innovations, sustaining social media growth, and navigating the evolving landscape of traditional media. With digital advertising's share of total budgets projected to reach 82% by 2029, the future of advertising in Australia is undoubtedly digital.
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Facebook is the most popular social network
Australia's advertising market is currently in a state of transition, with digital advertising spending on the rise. In 2024, the total ad spend in Australia was $19.9 billion, of which $14.5 billion was spent on digital advertising, a 7.3% increase from the previous year. This shift towards digital advertising is in line with Australia's highly connected digital market, with 97.1% of its population online and 77.9% active on social media.
Facebook's dominance in Australia is further reinforced by its diverse user base across age groups and genders. It attracts a balanced and age-diverse audience, with the 25-34 age bracket forming the largest group of Facebook users. Additionally, 54.2% of Facebook users in Australia are women, making it a platform that caters to a wide range of demographics.
Facebook's popularity in Australia can be attributed to its ability to foster connections and engagement. Messaging platforms, including Facebook Messenger, are widely used in the country, indicating that Australians value social media as a means of staying connected. Facebook's integration with Instagram and WhatsApp, which are also popular in Australia, further strengthens its position as a key platform for social interaction and content consumption.
Facebook's influence extends beyond social networking and into the realm of brand visibility and marketing. With its large user base and high engagement, Facebook has become a core driver of brand visibility and lead generation in Australia's digital economy. Brands recognize the importance of having a presence on Facebook and utilize it as a performance channel to promote their products and services.
In summary, Facebook's widespread adoption, engaged user base, and influence on brand marketing solidify its position as the most popular social network in Australia. Its dominance in the Australian market highlights the platform's integral role in shaping social interactions and digital marketing strategies in the country.
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TV and newspaper advertising favoured over outdoor
Despite the rise of digital advertising, TV and newspaper advertising remain popular in Australia, even over outdoor advertising. This is true for the automotive, finance, and travel and tourism industries.
TV advertising has been the dominant mass medium of the 20th century, but it now competes with cable TV and online news sources for viewers. While TV's aging audience is less appealing to advertisers, it is still a powerful medium. TV advertising is costly and difficult to change, but it offers a wide reach and can be combined with other media formats to expand ROI.
Newspaper advertising is another traditional medium that remains influential in Australia. It complements TV advertising by providing a longer-lasting impression on consumers. While a TV ad may be forgotten soon after it airs, a newspaper ad can appear regularly, reinforcing the brand message.
Outdoor advertising, on the other hand, offers a continuous presence, reaching audiences that other media might miss. It is perfect for reaching people on the go and can be targeted to specific audiences in certain locations. However, major Australian industries like automotive, finance, and travel and tourism still prefer TV and newspaper advertising over outdoor options.
While digital advertising spending is on the rise in Australia, traditional media remains influential. This is reflected in the spending habits of major industries, which allocate more of their budgets to TV and newspaper advertising, indicating that these mediums are still favoured over outdoor advertising in Australia.
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High social media usage
Australia has one of the most connected digital markets in APAC, with 97.1% of its population online and 77.9% active on social media. This high social media usage is reflected in the country's advertising strategies, with social media playing a major part in Australia's digital ad spend. In 2024, brands spent $4.26 billion on social media advertising, accounting for 29.3% of all digital ad expenditure. This marked a 12.1% increase from the previous year, indicating the growing importance of social media in Australia's marketing landscape.
Facebook is a prominent platform in Australia's social media advertising market, with an estimated 80% market share. Australian Facebook users are among the most active advert clickers globally, with an average of 22 clicks per month compared to the worldwide average of 12. Other popular platforms for social media advertising in Australia include Snapchat, LinkedIn, and TikTok. Snapchat has an estimated 5% market share, while LinkedIn, with its focus on B2B connections, has a 5% market share and is particularly influential in the Australian market. TikTok, while previously associated primarily with Gen Z, has seen a shift towards multi-generational engagement, making it an increasingly viable channel for broader advertising campaigns.
The high social media usage in Australia extends beyond a single platform, with Australians actively utilising multiple devices. While mobile phones are preferred, with a high ownership rate of 97.5% for smartphones, 71.4% of internet users aged 16+ also own a laptop or desktop computer. This makes Australia one of the most cross-platform-savvy markets in the region. As a result, marketers need to ensure that their campaigns deliver seamless, responsive experiences across various devices, from laptops to mobile phones and social media platforms.
As the social media advertising sector in Australia continues to grow, brands will need to adapt their strategies to maintain a competitive edge. This includes prioritising compelling visuals, strong targeting, and data-driven approaches. Additionally, with the rise of influencer marketing, brands must navigate Australia's influencer marketing laws, which require clear disclosure of sponsored content to avoid misleading consumers. Overall, Australia's high social media usage presents a significant opportunity for advertisers to reach a wide and engaged audience through strategic and innovative social media campaigns.
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Mobile optimisation is key
Australia has a diverse range of advertising mediums, but one key trend is the dominance of digital platforms. With high internet and mobile penetration rates, Australians are increasingly connected and engaged with online content. This makes digital advertising a powerful tool for reaching and influencing consumers.
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Frequently asked questions
Digital advertising is the most popular medium in Australia, with 73.1% of the total ad spend allocated to digital channels. Social media plays a major role in this, with Facebook being the most popular platform for social media advertising, followed by LinkedIn and Twitter.
Digital advertising spend in Australia has been steadily increasing over the years. In 2023, Australian digital advertising grew by 11.6% to USD 3.71 billion. In 2024, digital ad spend was $14.5 billion, up 7.3% from the previous year.
Australia's high internet and social media usage have likely contributed to the popularity of digital advertising. Additionally, the country's demographic profile, with a median age of 38.3 and a high literacy rate, makes it a strong fit for data-driven digital campaigns.
According to the Nielsen Ad Intel report, the retail industry has the highest advertising spend in Australia, with Harvey Norman being the top advertiser. Other industries with high advertising spend include supermarkets, telecommunications, and automotive.
