IAB report reveals digital advertisers sharpening data strategies amid privacy reform and AI shift

August 6 2025, 12:01 am | BY Ricki Green | No Comments
IAB report reveals digital advertisers sharpening data strategies amid privacy reform and AI shift

Australian digital advertisers are evolving their data practices in response to increased privacy regulation, signal deprecation and emerging AI technologies, according to the  IAB Australia Data State of the Nation Report 2025, released today. The report, produced by the IAB Australia Data Council, reveals that 92% of industry decision-makers view data usage as critical or very important to driving commercial success, with many actively pursuing new tools, strategies and partnerships to stay ahead of regulatory and technological change.

 

Awareness of Australia’s Tranche 1 Privacy Act reforms is moderate, with 44% of respondents rating their understanding at 6 or above on a 10-point scale. However, 67% say they are at least somewhat prepared for these changes, with shifts for these and future reforms already underway in data mix, measurement approaches, and personalisation strategies.

The most widely adopted tools for managing privacy change are contextual targeting and data clean rooms, with clean room adoption growing significantly year-on-year. While confidence in business capabilities is high in contextual targeting (89%) and identity solutions (74%), the application of AI remains cautious. Only 32% of companies have operationalised AI in at least limited use cases across media planning or activation, with a further 51% still in exploratory phases. Although AI has been part of digital advertising workflows for some time, 91% of respondents have yet to fully scale it across the media campaign lifecycle. By contrast, 30% of agencies, brands and publishers in the US report having fully integrated and operational AI.

AI adoption is primarily being led by accessible tools: 71% of respondents are using general-purpose platforms like ChatGPT, while 56% are leveraging AI functionality within existing tech platforms.

“The findings reflect a pragmatic industry adapting to both opportunity and obligation,” said Jonas Jaanimagi, Technology Lead at IAB Australia. “We’re seeing strong momentum behind contextual targeting, increased emphasis on first-party data, and growing experimentation with AI—all in response to a rapidly evolving privacy landscape. When used responsibly and with clear consent, data plays a critical role in funding the open internet by supporting free content and services. As we navigate regulatory and technological shifts, aligning innovation with transparency will be key to long-term sustainability.”

Additional findings from the report include:

  • 74% of respondents say privacy changes are impacting personalisation tactics.
  • 81% of respondents want industry standard AI privacy and protection protocols to safeguard data and build trust.
  • Top AI use cases include audience segmentation and cross-channel campaign optimisation.
  • The most significant concerns for AI adoption are data security risks, accuracy and transparency issues, and lack of clear industry standards.

Rachida Murray, Chief Data Officer at Spark Foundry and Co-Chair of the IAB Australia Data Council, added, “The results show that data maturity is accelerating across the industry. We’re seeing real investment in clean rooms, updated measurement strategies, and stronger internal capability to meet both privacy expectations and performance goals. AI is part of that shift — but the emphasis is now on thoughtful integration, not just experimentation. As regulations evolve and technology shifts, the focus needs to stay on building a data environment that is transparent, secure and fit for the future. Industry-wide collaboration will be essential to get there.”

The IAB Australia Data State of the Nation Report 2025 is based on survey data collected in July 2025 from 103 advertising decision-makers and influencers across agencies, trading desks, media owners, technology vendors and marketers. This is the third wave of the study, and the findings will inform ongoing education, training and industry initiatives to support the safe and effective use of data and emerging technologies.

The IAB Australia Data Council includes representation from AdFixus, Adobe, Audience360, Azira, Blis Media, Coles360, DataCo, Equifax, Eyeota, Foxtel Media, Google, In Marketing We Trust, InfoSum, Kinesso, LiveRamp, Mindshare, MiQ, News Corp, Nine, Ogury, OMD, Paramount, PHD, REA Group, Samsung Ads, SCA, Seven Network, Spark Foundry, Suncorp Group, The Trade Desk, Wavemaker and Yahoo.

 

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