Traditional broadcasters are lowering expectations as free-to-air television advertising experiences a substantial drop, with revenues falling by nearly 10% in 2025. This shift is part of a broader strategy to embrace digital trends, though it may further impact media companies dependent on older advertising models.
Free-to-air TV networks across the country are under pressure as advertisers redirect budgets to more targeted and measurable channels, including digital and outdoor. This trend aligns with global movement away from traditional media and signals growing scepticism among advertisers, which has been exacerbated by economic uncertainty. The rise of streaming services and on-demand viewing continues to transform how audiences engage with content and how advertising revenue is generated.
According to data from ad tracking firm Guideline SMI, August saw an 18% year-on-year decrease in free-to-air ad revenue, with a three-month average drop of 17%. These figures do not account for advertising on digital streaming platforms such as 7plus, 9Now and 10 Play, which offer some offset to the decline, though only partially. In contrast, overall ad spending has risen by 1% this year, with billboard and digital advertising growing by 13%.
The sharp downturn is leading to industry consolidation. Southern Cross Media, a key player in the audio sector, is acquiring Seven West Media in an all-stock deal valued at $420 million. The acquisition aims to rebalance revenue streams towards radio, which has shown greater resilience, but uncertainty remains. Shareholders are divided over the deal’s structure and analysts question whether catch-up TV can effectively compensate for the losses in free-to-air advertising.
There are still signs of strength in the market. This year’s AFL and NRL grand finals drew audiences of 4.1 million and 4.5 million respectively, representing record figures under the current ratings system. These events highlight that broadcast TV, while reduced in impact, still has the ability to attract large audiences and influence advertising if confidence in its reach can be restored.
