In a notable shift within the marketing sector, businesses are forecasted to prioritise social media advertising and artificial intelligence (AI) innovations by 2025, according to a report by Mediaocean. The study, which surveyed nearly 700 industry professionals in November, outlines emerging trends and challenges that are set to influence marketing strategies in the coming years.
The report highlights that social media advertising remains a pivotal channel for marketers, despite uncertainties surrounding platforms like TikTok. Approximately 68 percent of marketers intend to increase their investment in social media ads in 2025. Furthermore, digital display and video advertisements are identified as key growth areas, with 67 percent of respondents planning to enhance their budgets in these segments. The Connected TV (CTV) market is also gaining momentum, with 55 percent of marketers indicating plans to allocate more resources to this platform.
Conversely, traditional media outlets such as radio, audio, national and local television, and print are witnessing a decline in interest. Many marketers are either maintaining their spending or scaling back their investments in these traditional channels, reflecting a broader shift towards digital platforms.
Generative AI has emerged as a significant trend for marketers, with nearly two-thirds of respondents ranking it as the most critical consumer and media trend they are monitoring. This marks an eight-percentage-point rise compared to figures recorded in July 2024. Marketers are increasingly leveraging AI for purposes such as data analysis, extensive market research, and content creation. Alongside this trend, automation is noted as the fastest-growing area of investment, being the only advertising capability to see an increase in its criticality ranking during the latter half of 2024.
Despite the growing focus on automation and AI, several traditional areas remain crucial for marketers, including performance-driven paid media, measurement and attribution, and brand advertising. These areas reflect a commitment to measurable outcomes and strategic allocation of resources. A decline in concerns regarding the deprecation of third-party cookies has also been observed; in 2023, 39 percent of marketers expressed worry over the industry's lack of readiness for a cookieless future, a figure which has decreased to 31 percent by late 2024.
Nevertheless, new challenges are arising, as 45 percent of respondents highlighted difficulties in measuring campaign effectiveness across technological platforms and the open web as a significant concern. Additional issues noted in the report include consumer resistance to advertising, hurdles in managing advertising reach and frequency, and limited access to third-party data. Mediaocean has suggested that adapting multi-ID solutions could enhance measurement accuracy, thereby improving campaign effectiveness.
In a parallel development within the advertising landscape, UK-based WPP, a major global advertising firm with well-known agencies like Ogilvy and Wunderman Thompson under its umbrella, is shifting its focus towards growth in the United States. With 40 percent of its revenue generated in the US, WPP is contemplating relocating its primary listing from the London Stock Exchange to New York, following in the footsteps of other firms that have reaped benefits from similar moves.
The company’s CEO, Mark Read, conveyed optimism about the US market, citing a renewed sense of business confidence following political developments. According to projections by BIA, total media spending in the US is expected to grow by 5.5 percent, reaching $170.9 billion by 2025. Although over-the-air radio may see a slight decline, radio digital spending is anticipated to increase by 4.2 percent.
WPP's strategy also involves an investment of $123.5 million in an AI platform aimed at amplifying creativity and productivity across its agencies. However, the firm faces challenges; its shares have dipped nearly 12 percent this year, and it has ceded its title as the world's largest advertising agency by revenue to France’s Publicis. Meanwhile, US competitors are poised for a $30 billion merger. While Read acknowledged the potential for mergers, he underscored the importance of focusing on internal investments over major consolidations.
As WPP pivots towards the US market and prioritises AI investments, these developments reflect significant transformations within the advertising sector, signalling potential shifts in how traditional radio operators may position themselves in an increasingly digital sales-driven environment.
Source: Noah Wire Services