Australia’s online advertising market soared to a record $17.2 billion in FY2025, with video ads across both short-form and long-form formats, driving unprecedented growth and reshaping marketing strategies for brands large and small. Here’s a breakdown of what this means for marketers and why the right mix of TikTok-style clips and deep-dive YouTube content is now more essential than ever.
Online Advertising Growth: FY2025 Highlights
According to the IAB Australia Internet Advertising Revenue Report, the Australian online ad market grew 10.6% year-on-year, energised by spending around the Summer Olympics and the federal election. Search remains the market’s single largest segment (44% of all spend), but video continues to accelerate as the prime growth engine, now making up 29% of the market and surging 21.9% year-on-year to reach $5 billion. Social video, driven by TikTok, Instagram Reels and YouTube Shorts, jumped 36.7% to $1.9 billion, while BVOD (broadcaster video on demand) also grew to $500 million.
The Power of Short-Form Video
Short-form video, think YouTube Shorts, Instagram Reels and TikTok, has become the beating heart of social media marketing. Usually under one minute, they are powerful due to:
However, as the volume of short-form ads increases, so does the risk of Ad Fatigue. Recent research highlights that the effectiveness of short-form ads depends not just on brevity but on their content characteristics. Trustworthiness, expertise, authenticity and brand heritage, which directly boost purchase likelihood, must be carefully balanced to avoid losing impact.
Why Long-Form Content Still Matters
While short videos boost reach and awareness, long-form content, such as 30-minute YouTube explainers and interviews, still remain vital for nurturing deeper audience relationships and building trust.
Deeper engagement: Viewers who invest time in rich, long-form content are more likely to develop an affinity for the brand and progress down the conversion funnel.
Authority and SEO: Longer content on platforms like YouTube ranks well for comprehensive topics and positions brands as experts.
Storytelling and retention: Documentaries, webinars, and tutorials allow nuanced storytelling and more memorable brand experiences.
According to the Social Media Examiner, platforms continue to support longer run times and advertisers see strong performance for educational or insight-driven videos, especially as audience sophistication with digital content increases.
Combining Short and Long-Form for Maximum Results
Strategy: The most successful digital marketers are integrating both types, using short clips to capture fleeting attention on social platforms, then channelling interested viewers toward deeper content for education and conversion.
Repurposing: Brands can extend the value of their investment by breaking long-form videos into snackable segments for social, creating a feedback loop that reinforces messaging across channels.
Performance tracking: Measurement and optimisation remain key, with marketers using performance data to decide where to focus their spend and which formats yield the best results for their unique audience goals.
The Road Ahead: Trends to Watch
Personalisation and AI-driven video will proliferate, letting brands deliver smarter, more relevant content at scale.
Interactive and behind-the-scenes content will continue trending, as audiences demand closer, more authentic connections with the brands they follow.
As digital advertising spend keeps climbing, a balanced, creative approach to Both Short and Long-Form Video will separate standout brands from the noise.
Conclusion
The $17.2 billion milestone in online advertising for FY2025 is a testament to video’s central role in modern marketing. Brands that embrace both short, high-impact clips and in-depth, long-form narratives will be best positioned to capture attention, cultivate loyalty, and drive ROI in a rapidly evolving digital landscape.