Advertising Trends: What does 2025 have in store?

Published: November 18, 2024

The year 2024 was a whirlwind, catapulting generative AI into the mainstream, witnessing the ongoing battle for TikTok’s survival, and finally seeing Google’s ‘will they, won’t they’ trope about third-party cookies reach a long-awaited resolution.

We seem to have reached numerous advertising milestones in just one year. How will 2025 measure up? Let’s explore what industry experts anticipate for the year ahead and how advertisers can prepare.

Invest in CTV and OTT Capabilities

Connected TV (CTV) and over-the-top (OTT) platforms are revolutionizing the programmatic video advertising space. With a surge in cord-cutting, both cable and broadcast TV have been steadily replaced by streaming services. In fact, by 2025 CTV ad spending is projected to reach $27.47 billion dollars.

This TV viewing shift has emboldened advertisers to deliver highly-targeted content based on viewer demographics and behavior, resulting in more effective campaigns compared to traditional TV advertising. John Smith, CEO of Adtech Innovation believes "CTV is not just a trend; it's the future of television advertising. Brands that don't adapt risk being left behind."

What to expect: As technology continues to advance, the future of CTV advertising holds even greater promise. Innovative CTV ad formats, such as interactive ads, QR codes, shoppable ads, and pause screen ads, are expected to play a big part in 2025, enhancing viewer engagement and driving conversions.

The Rise of AI-Powered Advertising

In 2024, every major advertising event prominently featured the letters "A" and "I." In fact, marketing and AI are becoming synonymous at this point. As we approach 2025, AI technology is enhancing operational efficiency and fostering more personalized, insightful, and dynamic interactions between companies and consumers.

AI-powered predictive analytics is the next frontier. By analyzing vast amounts of consumer data, AI can anticipate customer needs and desires, allowing brands to proactively deliver personalized experiences within minutes. Companies will be able to reduce downtime while increasing production.

The benefits of AI extend beyond individual customer interactions. By analyzing real-time data, AI can optimize entire marketing campaigns, adjusting strategies to maximize ROI. This data-driven approach ensures that every marketing dollar is spent effectively, driving better results and higher conversions.

Actionable tip: Invest in AI-powered marketing tools and platforms. Focus on those that offer predictive analytics and real-time optimization capabilities. Also, prioritize staff training to effectively leverage these AI tools. This ensures your ad plays more frequently on each selected screen, leading to greater memorability for your target market.

Embrace Bite-Sized Video Content

With the average attention span now estimated at 8-seconds, short-form video content has risen as a vital strategy to combat ad fatigue and reinspire consumer interest. By 2025, video content is projected to account for 82% of all global internet traffic.

Platforms like TikTok, Instagram Reels, and Youtube Shorts have become leaders in this space, offering bite-sized, snackable video content that resonates well with Gen Z and Millenials. These demographics prefer quick, impactful videos that deliver personalized messages quickly, making short-form video content that must-need engagement tool to engage younger audiences.

Smart advertisers are increasingly leveraging short-form video content to reach audiences across multiple advertising channels. For example, TikTok has partnered with companies like Adomni, GSTV, and Redbox to extend its reach beyond the mobile phone and into the real-world. This strategy not only enhances visibility wherever the customer is, but also integrates short-form video content into everyday consumer experiences.

With video on the rise, we can anticipate more platforms to take their ads out of mobile screens and into physical spaces, creating more immersive consumer experiences. In the same breath, advertisers will focus on tailoring content to individual preferences. And, the integration of e-commerce within video ads will streamline the purchasing process, allowing consumers to buy products directly from the videos they watch.

Focus on Cross-Screen Measurement

Cross-screen measurement is expected to be a critical focus for marketers in 2025, as the media landscape continues to fragment across multiple devices and platforms.

Advertisers will likely have access to improved tools for tracking user interactions across smartphones, tablets, desktops, smart TVs, and other connected devices, enabling brands to deliver more cohesive ad experiences online and offline and measure campaign effectiveness across the entire consumer journey. Additionally, attribution models are predicted to become more advanced, providing clearer insights into which ads drive conversions across different touchpoints and enabling more efficient ad spending.

There are ongoing efforts to establish industry-wide standards for cross-screen measurement. For example, the ANA announced Aquila, an initiative aimed at governing and executing cross-screen measurement. This project, with a planned launch in late 2025 or early 2026, involves collaboration with major platforms like Meta, Google, Amazon, and TikTok.

True cross-screen measurement in 2025 is likely to rely on the integration of multiple data sets, including panels, census data, and attribution. By leveraging the strengths of each data type, advertisers will gain a more accurate view of media consumption across individuals and devices, as well as better understand how cross-platform media investments drive business outcomes.

As we look towards 2025, the advertising landscape is set for significant transformation. The rise of CTV and OTT, AI-powered advertising, short-form video content, and advanced cross-screen measurement will reshape how brands connect with consumers. Advertisers who start now – by investing in new technologies, adapting to changing consumer behaviors, and prioritizing data-driven strategies – will be best positioned to thrive in this evolving ecosystem.

The future of advertising is not just about reaching audiences; it's about creating meaningful, personalized experiences across all screens and platforms. As we navigate these changes, the question for advertisers becomes: How will you innovate to stay ahead in this rapidly evolving landscape?

Written By: Julia Cramer

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