Australia's advertising market grew 5.2% to $28.9 billion in 2025 and is forecast to reach $30.7 billion by end of 2026. Digital now commands 75.9% of spend. Retail media is the fastest-growing channel and will surpass total TV ad revenue by 2027.
The Australian ad market is not shrinking. It is restructuring. The channels gaining share are digital, measurable and increasingly automated.
Australia's advertising market grew 5.2% to $28.9 billion in 2025. Forecasts put 2026 at roughly $30.7 billion, a further 6.5% rise. The numbers are healthy. Where the money is going tells a more interesting story.
Pure-play internet advertising now accounts for 75.9% of total ad revenue, a share expected to climb to 83.5% by 2030. Within digital, retail media is the standout performer, growing 28.1% in 2025 with a further 24.4% forecast for 2026.
The milestone approaching: retail media will surpass total TV ad revenue for the first time in 2027. That is not a prediction from an optimistic retail media vendor. It is the trajectory of confirmed spend data.
Meanwhile, traditional media continues to contract. Newspaper ad revenue fell 17.4% in 2025. Magazine revenue dropped 2.9%. TV and streaming ad revenue declined 8.7% in 2025 and is projected to fall another 5.1% in 2026.
Out-of-home is the exception in physical media, rising 8.2% in 2025 with a further 6.2% expected in 2026.
Forecast size of the Australian advertising market by end of 2026, up 6.5% from $28.9 billion in 2025
Why it matters
For Australian business owners and marketers, the macro trend is clear: if your budget is weighted toward traditional channels that are losing share, you are swimming against the current. That does not mean TV or print are worthless. It means they are becoming niche rather than default.
Retail media's growth trajectory is the most consequential development. Coles, Woolworths and Amazon Australia are building advertising platforms that offer closed-loop measurement. You spend on their network, you see the sales data. That attribution certainty is pulling budget from channels that cannot offer the same accountability.
The 83.5% digital share forecast for 2030 means that within four years, less than 17 cents of every advertising dollar will go to a non-digital channel. Businesses that have not built digital marketing competence are running out of time to catch up.
Out-of-home's resilience is worth noting. It combines physical presence with digital measurement capabilities, a combination that appeals to brands wanting reach beyond screens.
What to do about it
The $30.7 billion number is the headline. The restructuring underneath it is the strategy signal.