IAB Australia's 2026 Video State of the Nation report shows video advertising grew 19.8% to $5.4 billion, reaching 29% of total online ad investment. Economic caution is compressing planning cycles.
The money is chasing conversions. The measurement is still stuck on brand recall. That gap is costing Australian advertisers real optimisation opportunities.
Video advertising grew 19.8% to $5.4 billion in Australia last year. It now accounts for 29% of total online advertising investment, according to the IAB Australia 2026 Video Advertising State of the Nation Report.
The growth is happening against a backdrop of economic caution. Advertisers are not pulling back from video. They are compressing their planning cycles. Decisions that used to happen quarterly are now happening monthly. Briefs that used to lock in six months of spend are getting shorter commitment windows.
Video advertising investment in Australia in 2025, growing 19.8% to reach 29% of all online ad spend
Ad-supported subscription streaming is the growth engine. 71% of ad buyers plan to increase spend on ad-supported streaming platforms this year. Programmatic CTV is gaining momentum alongside it, with 46% of respondents planning to increase investment in 2026.
But there is a measurement disconnect. The report reveals that driving sales and conversions is the top media investment goal for 2026, yet brand metrics remain the most commonly used measure of success. Advertisers are buying video for performance outcomes but measuring it with awareness metrics.
Why it matters
Video at 29% of total online spend makes it the second-largest format in the Australian digital market. The trajectory points toward a third of all digital investment within the next 12 to 18 months.
The compressed planning cycle is the more interesting signal. When advertisers shorten their commitment windows, it typically means they are less confident in the economic outlook and want flexibility to pull or redirect spend. For media owners and agencies, shorter cycles mean more frequent pitching and less revenue predictability.
The CTV growth is also reshaping the competitive landscape between broadcasters and pure-play streaming services. Traditional TV networks are pushing their own streaming ad inventory hard, while global platforms like YouTube, Netflix and Disney+ are all fighting for the same budgets.
For performance marketers, the measurement gap is an opportunity. If most advertisers are still measuring video with brand metrics, the ones who crack attribution for video-driven conversions will have a significant advantage in optimising spend.
What to do about it
Video is not a trend in Australian advertising. It is the dominant growth story. The question is whether your measurement is keeping up with your spend.