Australia’s internet advertising market grew by 11.1 per cent in 2024 to reach a record $16.4 billion, according to new data from the Interactive Advertising Bureau (IAB) Australia Internet Advertising Revenue Report, prepared by PwC Australia.

According to the IAB Australia Internet Advertising Revenue Report, most digital advertising formats recorded solid growth in 2024, with video emerging as the primary driver.

The report found that video investment rose 19.6 per cent year-on-year to $4.5 billion, positioning it among the fastest-growing segments of the market.

Search and directories rose by 10.1 per cent to $7.2 billion, while classifieds grew 8.3 per cent to $2.6 billion. Display advertising, excluding video, increased slightly by 1.7 per cent to $2 billion, and audio advertising rose 17.8 per cent to $313 million.

According to the report, all video formats recorded double-digit growth in 2024, with social platforms now accounting for more than one-third of total video advertising spend. 

This placed social video ahead of broadcast video on demand (BVOD) and other video formats. Investment linked to the Olympics in the third quarter was cited as a key contributor to the surge in video spending.

Connected TV continued to dominate content publishers’ video inventory, reaching 51 per cent of expenditure for the calendar year, while mobile and desktop video spend declined.

The report found that the composition of buying methods for content publishers’ display inventory remained steady in 2024. Internet advertising purchased via agency insertion orders made up 44 per cent of total spend, followed by programmatic buying at 39 per cent and direct client buying at 17 per cent.

In terms of advertiser categories, retail remained the largest contributor to display advertising, accounting for 17.1 per cent of the market. The automotive sector increased its share to 14.8 per cent, while finance held third place with a marginal decrease to 8 per cent.

Commenting on the results, IAB Australia CEO Gai Le Roy said the digital advertising market demonstrated resilience and adaptability after a slower 2023.

“After a modest growth rate of 3.7 per cent in 2023, the digital advertising market again achieved double-digit growth in 2024 sustained by an ever-increasing range of ad formats and environments, as well as spend from the SME market right through to the big end of town,” Le Roy said. 

“As always, growth is mixed across the market, and it is tougher for those content publishers who do not have significant video inventory and are relying on standard display inventory.”

The report also detailed fourth-quarter performance, showing total advertising revenue of $4.26 billion, up 8.8 per cent from the same period in 2023. During the quarter, search and directories grew 8.8 per cent to $1.83 billion, while video grew 19.2 per cent to $1.31 billion.

Audio advertising rose 15.1 per cent to $90 million, and classifieds edged up 0.1 per cent to $575 million. In contrast, non-video display advertising dropped 2.4 per cent to $540 million.

Across categories, automotive retained the highest advertising share for the quarter at 17.3 per cent, followed by retail at 14.6 per cent. 

Entertainment, fast-moving consumer goods (FMCG), and finance all increased their shares, each representing around 7.5 per cent of the total spend.

The IAB Australia Internet Advertising Revenue Report, compiled by PwC Australia, provides a comprehensive overview of the evolving digital advertising landscape, covering expenditure trends, advertiser categories, and buying types. 

The full report and data file are available here.