Australian digital advertisers are adjusting data practices in response to privacy regulation, signal deprecation and emerging AI technologies, according to the IAB Australia Data State of the Nation Report 2025.
The report, based on a July 2025 survey of 103 industry decision-makers, found 92% consider data use critical to commercial success, with many exploring new tools and partnerships to meet regulatory and technological changes.
Awareness of Australia’s Tranche 1 Privacy Act reforms is moderate, with 44% rating their understanding at 6 or higher out of 10, and 67% feeling at least somewhat prepared. Contextual targeting and data clean rooms are the most widely adopted tools to manage privacy changes, with the latter seeing significant growth.
AI use remains limited: 32% of companies have operationalised AI in at least some media planning or activation, 51% are still exploring, and 91% have not scaled it across the campaign lifecycle. In the US, 30% of respondents report full AI integration. Most Australian adoption is through general-purpose platforms such as ChatGPT (71%) or AI functions within existing tech platforms (56%).
AI adoption is primarily being led by accessible tools: 71% of respondents are using general-purpose platforms like ChatGPT, while 56% are leveraging AI functionality within existing tech platforms.
“The findings reflect a pragmatic industry adapting to both opportunity and obligation,” said Jonas Jaanimagi, Technology Lead at IAB Australia.
“We’re seeing strong momentum behind contextual targeting, increased emphasis on first-party data, and growing experimentation with AI—all in response to a rapidly evolving privacy landscape. When used responsibly and with clear consent, data plays a critical role in funding the open internet by supporting free content and services.
“As we navigate regulatory and technological shifts, aligning innovation with transparency will be key to long-term sustainability.”
The report found 74% of respondents say privacy changes are impacting personalisation tactics and 81% of respondents want industry standard AI privacy and protection protocols to safeguard data and build trust.
Rachida Murray, Chief Digital & Technology Officer at Spark Foundry Australia and Co-Chair of the IAB Australia Data Council, added: “The results show that data maturity is accelerating across the industry.
“We’re seeing real investment in clean rooms, updated measurement strategies, and stronger internal capability to meet both privacy expectations and performance goals. AI is part of that shift — but the emphasis is now on thoughtful integration, not just experimentation.
“As regulations evolve and technology shifts, the focus needs to stay on building a data environment that is transparent, secure and fit for the future. Industry-wide collaboration will be essential to get there.”
The IAB Australia Data State of the Nation Report 2025 is based on survey data collected in July 2025 from 103 advertising decision-makers and influencers across agencies, trading desks, media owners, technology vendors and marketers. This is the third wave of the study, and the findings will inform ongoing education, training and industry initiatives to support the safe and effective use of data and emerging technologies.
The IAB Australia Data Council includes representation from AdFixus, Adobe, Audience360, Azira, Blis Media, Coles360, DataCo, Equifax, Eyeota, Foxtel Media, Google, In Marketing We Trust, InfoSum, Kinesso, LiveRamp, Mindshare, MiQ, News Corp, Nine, Ogury, OMD, Paramount, PHD, REA Group, Samsung Ads, SCA, Seven Network, Spark Foundry, Suncorp Group, The Trade Desk, Wavemaker and Yahoo.