Tuesday 2nd June 2026: Australia’s digital advertising and ad tech industry is navigating a significant structural shift as entry-level pathways narrow, AI reshapes day-to-day work and employers place a higher premium on senior, commercially minded and strategically capable talent, according to IAB Australia’s 2026 Digital Advertising and Ad Tech Industry Talent Review.
The annual Review shows an industry in transition as businesses reshape teams around efficiency, higher capability expectations and the rapid adoption of AI across day-to-day operations. However, it also points to a longer-term risk: a weakening future workforce pipeline if investment in early-career talent, leadership development and industry capability does not keep pace with change.
The Review shows the market is not moving in a single direction. While 42% of organisations reported headcount growth over the past year, 37% contracted and 21% remained flat. Growth is being led by locally headquartered technology companies, emerging ad tech firms and global businesses still building their Australian presence. Contraction is concentrated among larger established global platforms responding to AI-driven efficiency programs and global restructuring.
While AI is creating clear productivity gains across the market, the findings show the pressure is being felt most sharply in junior and process-driven roles that have traditionally helped develop the next generation of advertising and media talent. Entry-level roles have almost disappeared from the available vacancy pool, falling to just 1% of vacancies, while 49% of open roles now require more than six years’ experience.
At the same time, the industry vacancy rate has fallen to 2.4%, the lowest level since tracking began, with only 40% of companies reporting any open roles. The data points to a market that is still investing in talent, but doing so more selectively, with employers prioritising experienced people who can combine AI fluency with commercial judgement, strategic thinking and client leadership.
IAB Australia CEO Gai Le Roy said the Review highlights a structural workforce issue that requires an industry-wide response.
“If the industry wants to maintain a strong Australian media and advertising market, it cannot focus only on short-term efficiency. Continued investment in people, leadership capability and future talent pipelines will be critical.
“AI capability is rapidly becoming a baseline expectation across most parts of the market. But the findings also make it clear that technical skills alone are not enough. The capability gaps employers are struggling with most are strategic thinking, commercial acumen, leadership and the ability to work with clients and businesses in more sophisticated ways as the market becomes more complex.
“This is an area where the industry needs to work together. Employers, industry bodies and education providers all have a role to play in ensuring Australia continues to develop the depth of talent and expertise the market depends on.”
Additional findings from the 2026 Talent Review include:
- Hiring intentions remain cautious: 23% of organisations expect to increase hiring over the next six months, while 49% expect staffing levels to stay the same and 28% expect a decrease.
- Commercial roles continue to dominate the sector: 50% of the workforce is employed in sales and client service roles, reflecting the commercial structure of Australia’s digital advertising and ad tech market.
- The industry remains heavily concentrated in NSW: 76% of roles are based in NSW, compared with 19% in Victoria, 3% in Queensland and 1% across South Australia and Western Australia.
- Salary increases have moderated: the average salary increase over the past year was 3.5%, with 3% the most common increase.
- Offshoring continues to increase: 25% of companies reported an increase in offshoring over the past 12 months, while 15% reported increased use of contractors.
- Australian teams are carrying broader regional responsibilities: approximately 47% of Australian-based roles also cover New Zealand and around 31% cover APAC, adding complexity to local workloads and team structures.
- Gender representation is close to parity overall but varies significantly by role: the workforce is 46% female and 54% male, with female representation strongest in marketing and research/analytics but remaining low in technology and engineering.
- The workforce remains concentrated in mid-career age groups: around 88% of the workforce is aged between 25 and 49, while under-25s account for 7.5% and workers aged 50 and over account for 5.3%.
The report highlights four key calls to action:
- For individuals: invest in AI fluency. It is an entry requirement not a differentiator. Pair technical skills with strategic thinking, storytelling and commercial acumen. Seek lateral exposure across functions.
- For hiring managers: widen the talent lens. The best candidates may come from adjacent industries. Invest in mid-level leadership development which is the biggest capability gap in the market.
- For organisations: build graduate and internship pipelines before the entry-level shortage compounds. Formalise AI governance and upskilling before external pressure forces it.
- For the industry: advocate for more AU-based training pathways. Vertical industry knowledge, measurement capability and AI-for-advertising courses are the most requested by respondents and will be addressed by IAB Australia.
IAB Australia will use the findings to help inform its ongoing industry training, mentoring, research and capability-building programs across AI, measurement, privacy, leadership and digital advertising fundamentals.
First conducted in 2021, this annual Digital Advertising and Ad Tech Industry Talent Review research addresses the gap in available workforce data for Australia’s digital advertising industry. Data was gathered from 54 ad tech and media owner organisations in May 2026.