Australia’s advertising market grew 5.2% to $28.9 billion in 2025, according to WPP Media’s This Year Next Year report.
The holding company forecasts a further 6.5% rise, to roughly $30.7 billion, by the end of 2026.
“As we close out 2025, the Australian advertising market has demonstrated resilience and adaptability,” said WPP Media ANZ chief investment officer Melissa Hey.
“The structural shift continues as investment continues to move away from traditional linear channels and into digital ecosystems, reshaping how brands connect with audiences. While the broader economy wrestles with modest GDP growth and stubborn inflation, advertising investment is accelerating.”
According to the report, pure-play internet advertising accounts for 75.9% of total ad revenue and is expected to climb to 83.5% by 2030.
• Retail media is the fastest-growing channel, with spending forecast to rise 28.1% in 2025 and a further 24.4% in 2026. The sector is also on track to surpass total TV ad revenue for the first time in 2027.
• Search advertising is set to grow 10.2% in 2025 and 9.1% in 2026, holding a steady 23% share of total ad revenue.
• TV and streaming ad revenue fell 8.7% and is expected to decline a further 5.1% in 2026.
• Audio ad revenue, including digital and podcasts, rose 1.1% this year, offsetting declines in radio.
• Print continues to decline, with newspaper ad revenue down 17.4% in 2025 and magazine ad revenue down 2.9%.
• Out-of-home advertising rose 8.2% in 2025 and is set to grow another 6.2% in 2026.
• Cinema ad revenue also grew 5.2%, remaining a niche, premium environment.
Hey, said the story behind the numbers is “compelling”.
“Advertising is no longer the domain of big brands alone. Small businesses are driving this surge,” she said.
“Looking ahead, 2026 promises continued digitisation, and a market increasingly shaped by agile, data-driven investment decisions.”