Total bookings across Australia's advertising market experienced a notable decline in May 2025 according to latest SMI figures, down 7.2% compared to the same month last year.

Despite this overall downturn, certain media sectors reported growth, highlighting a shift in advertising spend patterns. Outdoor and Cinema media for example, recorded their highest May ad spend levels, with Outdoor revenues increasing by 4.6% and Cinema ad spend rising by 12.8% year-on-year. Magazine advertising also saw a modest increase of 0.9%, with both Trade and Consumer Magazine sectors contributing to this growth.

SMI said the Federal election held in early May appeared to have minimal impact on advertising expenditure, as Government-related advertising continued its decline. Government ad bookings decreased by 29.0% in May and were down 27% for the January to May period compared to the last election year of 2022.

Jane Ractliffe, Guideline SMI APAC Managing Director, commented, "In previous elections we’ve usually seen a strong spike in Government category advertising ahead of the election, but this year was remarkably different with Government bookings down 29.0% in May and back 27% in the current January to May period compared to the last election year of 2022."

The pivotal Retail and Automotive Brand categories also experienced declines, impacting overall market demand due to their significant ad spend volumes.

"Their double-digit declines are having an outsized impact on the market given their sheer volume of ad spend. But if we removed those declines, along with Government, from the market, then underlying demand for the month is back just $10 million," Ractliffe stated.

In the digital media sector, ad spend decreased by 6.5%. However, TV Streaming/Video sites saw a 7.8% increase year-on-year, and Retail Online revenues also rose. Programmatic ad spend fell by 13.4%, and Search ad spend decreased by 9.3%, with late payments cited as a contributing factor. Digital Content Sites ad spend grew by 1.2%, driven by election bookings on Nine and News Corp news media websites.

Despite the monthly decline, the calendar year-to-date total bookings increased by 3.0%, or nearly $100 million, compared to the same period last year.