Advertising recovery gathers pace as June returns to growth

Australian advertising demand has returned to growth, with June bookings edging into positive territory as marketers increased spending across digital, radio and several key advertiser categories.

Fresh Guideline SMI data shows advertising demand rose 0.3% year-on-year in June, with the research firm expecting the final figure to strengthen further once late digital bookings are processed.

The result follows an upward revision to May, which is now showing 5.1% growth after additional digital bookings were included, suggesting advertiser confidence strengthened through the final months of the financial year.

Guideline SMI chief insights and analytics officer Sean Wright said the second half of the year had gathered momentum.

"The market has continued to build momentum through May and June, with stronger digital demand and broad-based growth across several key advertiser categories helping June return to positive territory," Wright said.

Government advertising led June's gains, jumping 50% year-on-year. Food, produce and dairy spending rose 17.6%, while restaurants (+11.7%), wealth management (+12%) and automotive brands (+6.6%) also increased.

Digital continued to outperform. Retail online advertising surged 44.1% during June, while streaming video demand climbed 26.4%, helped by the FIFA World Cup. Radio also returned to growth, with bookings increasing 5.2% compared with the same month last year.

Across the January to June period, advertising demand has now edged 0.4% higher than the same six months a year earlier, with digital, outdoor, cinema and newspapers all recording growth.

For the full 2025-26 financial year, however, the market remained 2% below the previous year, reflecting a softer first half despite improving conditions in recent months.

Digital advertising remained one of the strongest performers over the year, rising 2.4%, while outdoor grew 3.8% and streaming video increased 14.2%.

Insurance was the fastest-growing advertiser category across the financial year, with spending up 14.5%.