The Australian advertising landscape faced significant headwinds in 2024, particularly in general display advertising, which saw revenue pressures across the board. The sluggish market conditions resulted in widespread redundancies, especially among media owners, highlighting the industry’s vulnerabilities. The first half of the year saw a slow crawl due to rising cost-of-living pressures, inflation, and consumer reluctance to spend. Google’s initial plan to deprecate third-party cookies also created uncertainty before the change in course mid-year.
We saw a strong and consistent demand for data activation despite these challenges. Notably retail emerged as a top spender for traditional display alongside entertainment which has shown strength, with demand for spending pattern insights continuing to grow.
Government departments have remained dominant advertisers, leveraging insights to focus on education and awareness campaigns.
Across the board we saw a strong and consistent demand for data for advertising activation across other established and emerging channels such as audio, connected TV, video, digital out-of-home and social.
The second half of the year showed improvements driven by new budgets, economic stabilization, and Google’s decision to delay cookie deprecation. Strong retail activity and government incentives contributed to increased ad spend, though generally consumer spending remained cautious.
While 2025 offers some positive economic signals, it is likely to feel like a continuation of 2024. Consumer confidence may improve but is unlikely to spark dramatic increases in spending. Competition for marketing budgets will remain intense, with businesses focused on maximizing ROI and efficiencies. Collaborative approaches to data enrichment will intensify as companies seek to do more with their first-party data with increasing focus on tracking performance metrics, accountability, and measurable returns on marketing investments.
Privacy legislation will remain at the forefront, with Australia’s evolving Privacy Act shaping how data is used and shared in marketing.
Alongside this, the transition to a cookieless future will continue shaping the advertising ecosystem, with brands and media agencies investing in alternative targeting solutions and identity frameworks.
One to watch: Connected TV and Digital Out-Of-Home channels are expected to continue growing, providing advertisers with dynamic and engaging formats to reach audiences.
Conclusion
2025 will likely be a year of cautious adaptation rather than bold growth. As the market stabilizes, advertisers and publishers must continue to innovate, embrace collaboration, and maintain adaptability to economic and regulatory changes.
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