WPP Media has released its Mid-Year 'This Year Next Year' forecast report for 2025, projecting a 4.1% growth in Australia's advertising market. The report anticipates that internet advertising in Australia will grow by 6.7%, reaching AUD$20.94 billion. Search advertising is expected to see a 4.4% increase, bringing its total to AUD$6.2 billion.

Retail media in Australia is forecast to experience significant growth, with a 28.1% increase projected for 2025, resulting in total retail revenue of $1.91 billion. In contrast, total television advertising is expected to decline by 6.9%, reducing the market to AUD$3.25 billion. Video On Demand (VOD) is projected to grow by 18.8%, reaching $688 million.

The overall audio market in Australia is forecast to grow by 1.3%, reaching $1,306 million. Cinema advertising revenue is projected to increase by 4.8%, reaching $132 million. Out-of-Home (OOH) advertising is forecast to grow by 5.2%, bringing total revenue to $1.36 billion.

Globally, WPP Media projects a 6% growth in advertising revenue for 2025, reaching $1.08 trillion. Digital advertising is expected to account for 73.2% of global ad revenue, rising to 81.6% when including digital extensions. Retail media is projected to reach $169.6 billion globally in 2025, with expectations to grow to $252.1 billion by 2030.

User-generated content is expected to generate more than half of content-driven advertising revenue in 2025. TV, including streaming, is projected to grow by 1.0% globally, with streaming TV contributing $41.8 billion. Out-of-home advertising remains stable globally, with digital OOH comprising 41% of the $52 billion OOH market in 2025.

Print advertising is forecast to decline by 3.1% globally, falling to $45.5 billion. Audio advertising remains flat globally at $26.5 billion, with growth in streaming offset by a decline in terrestrial formats. Search revenue is expected to grow by 7.3% globally, reaching $226.2 billion in 2025.

All major advertising markets are expected to grow in 2025, with Brazil and India leading the growth rates. WPP Media, WPP's global media collective, focuses on media investment management.

WPP Media ANZ's Chief Investment Officer, Melissa Hey, said: "As we navigate 2025, we're seeing a landscape of cautious optimism for Australia's advertising market. We anticipate a healthy 4.1% growth, buoyed by the federal election and a continued appreciation for quality content. While economic realities temper our optimism, it's heartening to see inflation stabilizing, even as we remain mindful of global uncertainties. Looking ahead, Digital channels will underpin sustained growth through to 2030, with key trends like AI-powered technologies and Influencer shaping the landscape. Our mid-year outlook reflects that Australia is a resilient market navigating global economic shifts."