Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 7.5 % over the past five years, to reach an estimated $15.3bn in 2024.
Trends and Insights
Expanding internet usage has caused online advertising to take off
- Revenue from online advertising has surged over recent years due to increasing use of search engines, online directories, online classifieds and other such services.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Online advertising is set to continue expanding, albeit at a slower pace than pre-pandemic
- Online advertisers are set to expand further over the coming years. Online advertising is gaining momentum as more businesses go digital and seek to capitalise on broad online audiences.
Biggest companies in the Online Advertising in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Google Australia | 8,900.0 | |
Facebook Australia | 2,696.8 | |
SEEK | 1,310.8 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Search and Directories, Classifieds and Listings and General Display and Video. Search and Directories is the largest segment of the Online Advertising in Australia.
Trends and Insights
Search engines and directories are appealing as a cost-efficient marketing option
- Advertisers use search engines to display their company sites or links, paying fees for the service. Search engines and directories have long led online advertising revenue, as they drive most internet traffic and are a cost-efficient way to reach potential customers.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Industry companies operate online advertising services, including web banner advertisements, search engine key word ads, online video advertisements, and other forms of online advertising. These firms generate revenue by selling advertising space or sponsoring search results presented to portal users. Other companies in the industry supply digital advertising services to companies and other organisations wanting to advertise on websites.
What's included in this industry?
Search engines and directoriesClassifieds and listingsGeneral display advertisingCompanies
Google AustraliaFacebook AustraliaSEEKPurchase this report to view all 5 major companies in this industry.
Related Terms
ADBLOCKERSEARCH ALGORITHM5G MOBILE NETWORKSTARGETED ADVERTISINGIndustry Code
ANZSIC 5921 - Online Advertising in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Online advertising is booming, driven by greater online activity, increasing internet connectivity and the popularity of social media. Advertisers have flourished thanks to s...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Search engines, particularly Google, generate the largest share of revenue in online advertising. This dominance is due to large search volumes and advanced advertising algor...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Online advertising companies can operate from anywhere due to the internet's lack of geographic barriers. However, elements like geographic internet protocols may pose some d...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition in online advertising mainly focuses on displaying the most relevant ads to users to boost interaction rates. This relevance is largely determined through complex...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Google's dominance in the search engine category allows the company to charge higher bid prices for its search advertising space compared with its competitors. This factor ha...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Google Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Facebook Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of SEEK's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Google Australia, and factors influencing its performance in the industry
- Description and key data for Facebook Australia, and factors influencing its performance in the industry
- Description and key data for SEEK, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Government policies that safeguard consumers’ personal information and discourage multinationals from evading tax significantly affect the operating landscape for online adver...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Online advertising’s strong profitability is due to high demand and soaring revenue. While high profits are skewed by the major companies’ corporate structures, the sector ha...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Online Advertising industry in Australia in 2024?
The market size of the Online Advertising industry in Australia is $15.3bn in 2024.
How many businesses are there in the Online Advertising in Australia industry in 2024?
There are 632 businesses in the Online Advertising industry in Australia, which has grown at a CAGR of 4.7 % between 2019 and 2024.
Has the Online Advertising industry in Australia grown or declined over the past 5 years?
The market size of the Online Advertising industry in Australia has been growing at a CAGR of 7.5 % between 2019 and 2024.
What is the forecast growth of the Online Advertising industry in Australia over the next 5 years?
Over the next five years, the Online Advertising industry in Australia is expected to grow.
What are the biggest companies in the Online Advertising market in Australia?
The biggest companies operating in the Online Advertising market in Australia are Google Australia, Facebook Australia and SEEK
What does the Online Advertising in Australia include?
Search engines and directories and Classifieds and listings are part of the Online Advertising industry.
Which companies have the highest market share in the Online Advertising in Australia?
The company holding the most market share in Australia is Google Australia.
How competitive is the Online Advertising industry in Australia?
The level of competition is moderate and increasing in the Online Advertising industry in Australia.
Related Industries
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Competitors
- There are no industries to display.
Complementors
International industries
View all industries in Australia
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
