Digital advertising industry tightens hiring, focus turn to AI skills

Rethinking Success Why balancing challenge and enjoyment is key to agency growth (1) - digital advertising

Gai Le Roy: ‘This year’s review highlights not just the pressure points, but the pathways to sustainable workforce growth.’

Australia’s digital advertising and ad tech sector is reshaping its workforce strategy in response to rising costs and the growing impact of artificial intelligence, according to IAB Australia’s 2025 Digital Advertising and Ad Tech Talent Review.

The industry’s job vacancy rate has dropped to 4%, down from 4.6% in 2024. Many companies are turning to offshoring and contractors to manage operational and reporting tasks more cost-effectively.

Salary growth has also slowed, with average increases dropping to 3.1% — down from 4.2% in 2023 and 3.8% in 2024 — though Australia continues to command premium wages for digital talent.

IAB - Industry vacancy rate - digital advertising

Hiring efforts remain focused on experienced candidates, particularly in commercial and technical roles.

Demand for mid-level talent (3–5 years’ experience) is high, while entry-level recruitment has declined. Businesses are adopting more flexible staffing models to meet evolving needs.

At the same time, organisations are increasing internal training across AI, data privacy, and leadership, as part of broader efforts to build capability during ongoing shifts in technology and team structures.

IAB - in-office company policies - digital advertising

“Over the last year we’ve seen a sharper focus on building flexible teams, investing in training, and managing costs without losing momentum,” said Gai Le Roy, CEO of IAB Australia.

“Organisations are being more selective in their hiring, while also exploring new ways to boost internal capability and build resilience. This year’s review highlights not just the pressure points, but the pathways to sustainable workforce growth.”

On AI, most businesses report plans to use the technology to improve productivity and strategic capacity, rather than replace roles. Investment in training, experimentation, and governance is growing, as companies incorporate AI more deliberately into day-to-day operations.

Other findings include:
• Female representation in senior management rose from 34% in 2024 to 38% in 2025, while overall gender balance in product and commercial roles remains steady.
• Commercial roles now make up 50% of the industry’s workforce.
• Offshoring and contractor use have increased across the board, particularly in operations and support.
• DEI policies are present in 86% of organisations, though support for neurodiversity and disability remains limited.
• Office attendance expectations continue to centre around hybrid models, with few changes reported this year; almost half the industry (45%) have mandated three days a week in the office with one “anchor” day where most team members are in the office.

The Talent Review provides critical insights to inform workforce development, diversity initiatives, and long-term planning across the digital advertising ecosystem.

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