Australia’s overall advertising market is projected to grow by 4.1% to $17.7B in 2025 according to WPP Media’s This Year Next Year report.
The Mid-Year Global Advertising Forecast report for 2025 reflects both resilience and recalibration across global advertising markets amid economic uncertainty and geopolitical tension.
Globally, WPP Media has revised its December 2024 forecast from 7.7% growth for 2025 to 6.0% as a result of ongoing challenges in global trade and continued deglobalisation pressures advertising investment.
The holding company is projecting global advertising revenue to reach $1.08 trillion in 2025, with growth of 6.1% projected for 2026.
WPP Media also forecasts a compound annual growth rate (CAGR) of 5.4% between 2025 and 2030, lower than the previously projected 6.4% CAGR for 2024–2029.
The media company has also reclassified advertising activity under four key categories: Content, Commerce, Location, and Intelligence. WPP Media noted the categories are nuanced and aligned with the reality of investment today and into the future.
WPP Media on Australia in 2025
Elsewhere the report highlighted Australia’s projections in the industry. Internet (excluding digital offshoots of traditional channels) is expected to grow by +6.7% in 2025, reaching AUD$20.94 billion, while search advertising is forecast to grow by +4.4% in 2025 and reach AUD$6.2 billion.
Retail media is predicted to grow by 28.1% and bring in total retail revenue to $1.91 billion in 2025.
Total television is expected to see an overall decline of -6.9%, bringing the market down to AUD$3.25 billion, according to the report. Meanwhile Video On Demand (VOD) is projected to experience substantial growth, estimated at +18.8% across 2025, with growth in Video on Demand reaching $688 million.
For audio, growth is projected at 1.3%, reaching $1,306 million this year. The overall audio market is forecast to maintain a steady but modest, growth at just over 1% through 2030.
Cinema advertising revenue is expected to see a 4.8% jump in 2025, bringing the total to $132 million.
Meanwhile, out-of-home is the only traditional channel predicted to grow +5.2% in 2025, bringing total revenue to $1.36 billion
Melissa Hey, WPP Media Chief Investment Officer, said: “As we navigate 2025, we’re seeing a landscape of cautious optimism for Australia’s advertising market. We anticipate a healthy 4.1% growth, buoyed by the federal election and a continued appreciation for quality content. While economic realities temper our optimism, it’s heartening to see inflation stabilizing, even as we remain mindful of global uncertainties.
“Looking ahead, Digital channels will underpin sustained growth through to 2030, with key trends like AI-powered technologies and Influencer shaping the landscape. Our mid-year outlook reflects that Australia is a resilient market navigating global economic shifts,” she added.