Australian spending on internet advertising surged to a record $19.8 billion in the 2023-24 financial year, marking a 14 percent increase compared to the previous year, according to data compiled by PwC Australia. This growth significantly outpaced the six-year average for the digital ad market, despite a largely flat overall advertising landscape.
The annual Internet Advertising Revenue Report, which aggregates figures from media owners, publishers and advertising platforms operating within Australia, attributed the expansion largely to the entrance of new advertisers. Gai Le Roy, CEO of IAB Australia, the country’s peak body for digital advertising, noted that while many established advertisers maintained flat budgets, fresh investment came from small and medium enterprises, retailers, and international advertisers targeting Australian consumers.
Le Roy highlighted a shift in ad spending patterns, emphasizing that much of the investment was “always-on” rather than concentrated around traditional campaign periods. This trend signals a transition toward digital advertising as a steady, integral element of brand communication rather than a tool limited to seasonal or retail events.
Search advertising remained the largest individual category, comprising 43 percent of total digital spend, with revenue reaching $8.6 billion. However, video advertising emerged as a key driver of growth, expanding 18.8 percent to $5.9 billion and accounting for 30 percent of overall online ad expenditure. Within video formats, social video experienced the most rapid growth, surging nearly 30 percent to $2.4 billion and representing 41 percent of video ad revenues.
Despite this local market growth, a considerable portion of advertising expenditure flowed to global technology companies such as Google, Meta, and TikTok. Shai Luft, co-founder and chief operating officer of Bench Media, pointed out that these platforms benefit from not only extensive audience reach but also large volumes of behavioral data and advanced advertising algorithms, which attract a substantial share of Australian ad budgets.
Luft stressed the importance of local media organizations enhancing their offerings to remain competitive, noting that simply providing digital inventory is insufficient. Instead, he urged local publishers, broadcasters, streaming services, and retail media networks to leverage trusted environments and valuable first-party data to demonstrate audience quality and deliver measurable results.
Looking ahead, Luft suggested the future success in digital advertising will depend on the strategic use of technology and data combined with human judgment and creative expertise—capabilities that algorithms alone cannot replicate. He also observed that digitally savvy chief marketing officers are driving a shift away from fixed media schedules toward dynamic budget allocations based on real-time campaign performance.
This ongoing migration of audiences toward online entertainment platforms is stimulating growth in the digital ad sector. The proliferation of advertising options across connected TV, Broadcast Video On Demand, and streaming services has expanded opportunities for advertisers, reinforcing the strength of video as a dominant format in Australia’s evolving media landscape.