The advertising industry is set to undergo significant transformations as it navigates the trends expected to shape 2025. Insights into these anticipated changes illustrate a complex interplay of emerging technologies and evolving business practices, particularly concerning artificial intelligence (AI) automation.
Among the notable shifts, there is an increasing awareness and resultant backlash against “woke” corporate initiatives, leading to a departure from the once-popular approach of diversity, equity, and inclusion (DEI) initiatives. The advertising landscape may see a retraction of companies once driven by liberal values, with reports suggesting brands could increasingly espouse more conservative principles.
In a marked change, the fragmentation of brand safety is on the rise, replacing the previous trend of its industrialisation. The advertising community is also expected to recalibrate their strategies, leaning towards quality-driven Supply Path Optimisation (SPO) rather than the commercial-centric models seen in the past. The importance of agency-curated marketplaces is being reinforced, indicating a departure from traditional agency trading desks.
As the use of third-party cookies is being scrutinised, concerns have shifted from the absence of these cookies in browsers to the implications of their diminishing presence on advertising effectiveness. This evolving landscape fuels speculations around a potential resurgence of ad tech initial public offerings (IPOs) in 2025, marking a pivot from earlier discussions centred around mergers and acquisitions (M&A) in 2024.
On the operational side, chief diversity officer roles may experience a decline, which contrasts the trend of their hiring seen in recent years. In tandem with this, there appears to be a growing trend where supply-side platforms (SSPs) are now placing their bets on curated deals instead of solely focusing on SPO deals. This may suggest a recalibration of strategies aimed at enhancing brand safety amidst a shifting market sentiment.
Increasingly, the power dynamics between advertisers and platforms are evolving, with expectations that AI platforms will cultivate closer relationships with publishers rather than isolating them, as was the case in previous years. Meanwhile, agencies are likely to shift their focus from dealing with the marketing team of a client to establishing more direct interactions with client procurement departments, reflecting a broader industry trend.
In the digital content sphere, creators are evolving their roles, with many transitioning from a consultant model to becoming entrepreneurs. This evolution comes alongside ongoing grievances pertaining to platform payouts, as creators express dissatisfaction with financial compensation structures.
The landscape of advertising technology is also experiencing change, as retailers are building their own ad tech instead of acquiring it from external providers. This shift underscores the trend of retail media networks now pushing for incrementality measures instead of solely return on ad spend (ROAS) metrics. Concurrently, platforms appear to be increasingly stepping into curation roles once held by ad tech entities.
As the industry prepares for 2025, the repercussions of these trends are anticipated to influence not only advertising practices but also the broader economic environment, establishing new norms and expectations for businesses navigating the future of AI-driven advertising and marketing strategies.
Source: Noah Wire Services