A new report released by ResearchAndMarkets.com forecasts continued expansion in Australia’s digital advertising market, driven by growth in retail media, connected television and increased use of automation and artificial intelligence, while noting rising regulatory and compliance pressures.
According to the report, Australia’s digital ad spend market is expected to grow by 12.7% year-on-year to reach US$16.88 billion in 2026, following a compound annual growth rate of 10.7% between 2020 and 2025.
Growth is forecast to accelerate further from 2026 to 2029, with spending projected to rise to about US$25.38 billion by the end of the period, representing a CAGR of 14.6%.
The analysis describes the market as entering a phase of structural change, shaped by tighter regulation, expanding retail media networks and evolving platform capabilities.
While global technology companies continue to account for a large share of spending, the report notes that local retailers, broadcasters and marketing technology providers are strengthening their position by offering data-driven and accountable advertising environments.
Global platforms including Google, Meta, Amazon and YouTube are identified as continuing to anchor much of Australia’s digital ad spend, particularly in search, social and video formats.
However, the report highlights increasing scrutiny linked to the review of Australia’s Privacy Act and the Australian Competition and Consumer Commission’s digital platform inquiries, which are prompting adjustments to data use and consent practices.
Retail media is identified as a key growth area, with networks operated by Woolworths Group and Coles becoming more central to omnichannel campaigns, particularly for fast-moving consumer goods and electronics advertisers. The shift is attributed to demand for first-party data and measurable outcomes as third-party cookies are phased out.
The report also points to growing investment in connected TV and broadcaster video-on-demand services, including platforms operated by Nine, Seven West Media, Paramount and Foxtel, as advertisers follow audiences shifting away from linear television.
While these environments are positioned as premium and brand-safe, the report notes ongoing challenges around measurement and frequency control.
Across the market, advertisers are increasingly prioritising privacy-compliant targeting, first-party data strategies and AI-enabled campaign execution. Sustainability considerations are also beginning to feature more prominently in media planning, although the report characterises this as an emerging rather than fully mature trend.
Overall, ResearchAndMarkets.com concludes that competition in Australia’s digital advertising market is likely to intensify over the next several years, with success increasingly linked to integrated offerings, regulatory alignment and transparent measurement as expectations for accountability continue to rise.