Digital ad spend hits $4.6b in September quarter, up 9.7%

Australia’s online ad market climbed to $4.6 billion in the September 2025 quarter, up 9.7% year-on-year despite tough comparables tied to last year’s Summer Olympics.

The IAB Australia Internet Advertising Revenue Report, compiled by PwC, shows the market held steady quarter on quarter after a June spike driven by Federal Election spend.

Search remained the engine room of growth, rising 12% to $2 billion for the quarter. Video jumped 16.7% to $1.34 billion and continued to outperform the broader display category, now making up nearly 73% of general display spend. Social video grew fastest at 29.4%.

Classifieds edged up 0.9% to $768 million, audio rose 3.5% to $82 million and non-video display fell 1.5% to $497 million.

“Growth in the Australian digital ad market continues to be driven particularly by social, video and search in the September quarter,” Gai Le Roy, CEO of IAB Australia, said.

“It has again been a tough quarter for many local publishers, with display revenue down 1.5% year-on-year and standard display down 6.8%. This fragmentation in spend does, however, provide opportunities for marketers to diversify their investment across a broader range of environments.”

Retail remained the largest display advertiser category with a 16.8% share, followed by automotive at 13.7%. Home products entered the top five for the first time with 5.6% and nudged out travel.

Connected TV accounted for 62% of video spend among content publishers and local broadcasters, supported by winter sports coverage. Desktop continued to decline at 24% while mobile’s share lifted slightly to 14%.