Australian ad spend down in 2025 after slow December: Guideline SMI

Australian advertising spend was down by 2% in 2025, despite a federal election filling the coffers during the first half of the year.

According to Guideline SMI data, which measures advertising spend through media agencies, the second half of 2025 saw spend drop by 5.2%, with all-important December ad revenue down by 9.2% year-on-year.

This more than wiped out the modest 1.6% growth seen during the first half of 2025, when political parties spent up big on the federal election.

The only bright spots for 2025 were the outdoor sector growing by 5.3% year-on-year, and digital spend being up by 1.2%. Online streaming services provided the only growth area for the second half of the year, with ad revenues up 9.2%.

As Guideline SMI’s APAC managing director Jane Ractliffe notes, “caution has certainly returned to the market in December.”

For December, outdoor spend dropped 16.3%, audio advertising spend fell by 16.9%, and magazines dropped by 29.2%.

The low December numbers dragged ad spend down by 6.6% during the fourth quarter of the year, marking the lowest fourth quarter since 2019. Guideline SMI credits this fall to a 30% decline in government spending and double-digit declines from retail and food, produce, and dairy categories.

Despite the gloom, the final six months of the year saw a 20.3% increase in media bookings by insurance companies, and an 8.8% year-on-year jump in media bookings from banks.

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