Digital video and audio builds as broadcast shift continues

Nathan Jolly

June 2, 2025 11:47

Internet advertising spend jumped by 11.6% during the first three months of 2025, driven by the continued shift from analogue TV and radio to digital video and audio.

The entire Australian internet advertising market reached $4.2 billion in spend for the March 2025 quarter, according to the IAB Australia Internet Advertising Revenue Report.

Video advertising was up 23.3% year on year, hitting $1.17 billion. This sector now represents 28% of all internet-based advertising, and includes pre-roll ads sold into news sites own video players, plus social media video, Youtube, BVOD, and video podcasting.

In contrast, Guideline SMI’s media agency data showed a 5.1% drop in linear TV advertising in January. Whether this is advertisers shifting to digital, or simply a reallocation of how the TV networks are reporting and dividing their advertising income is unclear.

This pattern can also be seen in audio advertising, which saw an increase in spend of 17.8% year-on-year, worth $77.3 million for the quarter. In January, linear radio advertising revenues dropped by 9.6%.

Elsewhere, search revenue increased 10% year on year to $1.9 billion, and represents 45% of all internet advertising, while classified listing revenue increased 7.8%, to reach $660 million, which IAB attributes to the booming real estate category.

Display advertising fell slightly, by 0.9% year-on-year, to sit at $461 million.

In terms of advertising categories, retail, automotive, and ‘entertainment and media’ remained in the top three spots, but all decreased their spend, year-on-year.

The biggest growth categories were FMCG (food, beverages, personal care products, and household cleaning supplies), insurance categories, and home products.

Despite increases for the industry, Gai Le Roy CEO of IAB Australia said there is “still some nervousness in the market around long term planning and brand investment which should be tempered by any future interest rate cuts in coming months.”