Digital dominance and OOH momentum push Aussie ad market into growth territory

Australia’s advertising market is tipped to grow 5.4% in 2025 to AU$29.9 billion, driven by digital dominance, OOH momentum and signs of stabilisation in traditional media formats, according to MAGNA’s mid-year Global Ad Forecast.

The forecast signals renewed confidence in the Australian market, despite ongoing global volatility, with early signs of growth returning in the first half of the year and a healthy macro backdrop supporting advertiser spend.

Digital ad revenue is projected to increase by 6.7% to $23 billion, accounting for 77% of total market spend, as brands continue to double down on search, social, video and e-commerce-driven formats. Search is expected to climb 3.5% to $10.8 billion, while social media will grow a sharp 14.3% to $8.7 billion, fuelled by short-form video and retail media momentum.

TV ad spend will dip slightly (-0.7%) to $3.7 billion, though MAGNA notes audience losses are stabilising, while podcasting and streaming are supporting flat audio growth (+0.2%). Out-of-home continues to stand out, forecast to jump 10% to $1.5 billion as digitisation and creative innovation lift its appeal.

Ros Allison, head of product & innovation at MAGNA Australia, said despite "dark clouds" of geopolitical upheaval and tariff uncertainty, Australia market was returning to growth in 2025.

"Digital platforms dominate the Australian market, taking over three quarters of ad revenue," she said, adding there was renewed positivity for traditional media owners, with stabilisation of TV audiences, growth for streaming and podcasting, and a standout market for OOH vendors.

Australia’s 2024 advertising market reached $28.4 billion, growing 5.7% year-on-year. The country remains the world’s 7th largest ad market and 5th most intense on a per-capita basis, with ad spend of $648 per person (global average: $159).

The retail category led local advertising spend, followed by telecom and finance. Top advertisers included Woolworths, Harvey Norman, Amazon, Wesfarmers and the federal government.

The regulatory environment is also shifting, with social media restrictions, including a ban on under-16s, expected to come into force by the end of 2025. Meanwhile, the introduction of VOZ has enabled cross-platform measurement across broadcast and BVOD.

Globally, the picture remains equally positive, but mostly for digital pure players like Meta, TikTok, Amazon and YouTube - whos growth will come at the expense of traditional media players. 

MAGNA forecasts global ad revenue will reach $979 billion billion in 2025, up 4.9% year-on-year, digital platforms DPPs expected to grow 8% to $709 billion - or 73% of global market share. Traditional media revenue, including TV, radio and print, is expected to fall 3%.

In Asia Pacific, advertising grew 7.9% in 2024 to $288 billion, led by strong gains in India, Taiwan and Sri Lanka. While growth will moderate to 4.6% in 2025, the region continues to outperform on digital scale and mobile-first adoption.

Leigh Terry, CEO of IPG Mediabrands APAC, said the 7.9% growth in Asia Pacific’s advertising economy in 2024 reflected a vibrant market fueled by expanding digital ecosystems and a stable macroeconomic backdrop. 

“The continued resilience and dynamism of the APAC advertising economy in 2024, growing by nearly 8%, reinforces the region’s strategic importance for global brands," Terry said.

"As digital platforms increasingly become the primary gateway to consumers, especially in mobile-first markets, advertisers must evolve their strategies to meet where attention is shifting.

"While the outlook for 2025 is tempered by macroeconomic and geopolitical uncertainty, the underlying fundamentals remain strong. APAC’s digital transformation is far from complete, and for brands willing to invest smartly, the region still offers outsized growth opportunities.”

China, Japan, Australia, India and South Korea make up 87% of APAC ad spend, with digital formats projected to account for 82% of total spend in the region by 2029.