2025 Outlook: The Year of Hyper-Growth in Digital Advertising
Next year in digital advertising will be another rollercoaster if early predictions are any guide. The IAB US has already released their forecasts for next year, and have issued strong thoughts around AI, commerce media, the creator economy, and privacy. CEO David Cohen said AI will take centre stage in 2025.
“In 2025, some brave marketing team will task an AI (or team of AIs) to conceive and execute the world’s first completely end-to-end AI-driven marketing campaign. The AIs will handle planning, buying, creative execution, traffic, measurement, and optimization. And here’s the kicker. The campaign will require surprisingly little human intervention. It will be stronger than expected. It will drive positive results,” Cohen wrote.
The big advertising giants (Google, Meta, Amazon, Microsoft), will up the ante next year and further absorb AI into the ad optimization process. The IAB also predicts that Google Chrome will roll out a new consumer prompt that is more friendly than Apple’s - and nearly half of consumers will decide to opt in to receive personalized experiences,” adding that “ads will get a new chance to prove their value.”
Marketing services company Adorn Media predicts next year will see privacy-centric advertising becoming the norm, as brands and platforms adhere to stricter laws around consumer consent and data protection. “Marketers will need to adopt new strategies that respect user privacy while still delivering effective advertising. This could involve a shift towards first-party data, contextual targeting, and consent-driven data collection methods.
Transparency will be key, with brands needing to clearly communicate how they use consumer data to build trust and maintain compliance,” wrote Adorn. There will also see the continued hyper-growth of Connected TV and in-app advertising, as witnessed by the recent state of CTV acquisitions, and the phenomenal revenue growth of Applovin. “As mobile usage continues to rise, in-app advertising will account for 66 percent of global mobile ad revenue by 2027.
This means that investing in mobile app development and leveraging in-app ad placements will drive greater revenue streams and improve user engagement, said advertising services provider Admination. Brands will need to be agile and also need to thread a fine line between achieving strong performance and meeting compliance laws, said DeCenter Ads, an advertising platform based in Asia. “Rapid technology advances, tighter regulations, and evolving consumer expectations will significantly shape this year’s media landscape. As we move forward, advertisers will need to balance innovation with responsibility,” the company said.
State of the AdTech Industry
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