Dec 4 2024
Ben Larrison

Executive Summary | Reality Check: The 2025 Advertising Trends Report

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Heading into 2025, more and more marketers find themselves looking past the hype and the upside and, instead, asking that age-old question: “Oh yeah? Prove it.”

The industry is still grappling with a host of challenges that have frustrated advertisers for years—things like addressability, measurement, streaming activation, and new opportunities for reach and incrementality— and advertisers are eager to find real solutions that drive tangible results, and to thread the needle between promise and practicality.

Reality Check: The 2025 Advertising Trends Report provides keen perspective on the trends set to shape 2025, exploring the ways advertisers can bridge the disconnect between expectations and reality while maximizing the potential of new innovations to drive impact across their campaigns in the year ahead. This Executive Summary examines the core themes and trends outlined in the report, providing actionable insights for marketers and advertisers looking to thrive in the evolving digital landscape.

Trend #1: Commerce Media: Moving Beyond Retail

Commerce media is exploding, leveraging the vast potential of first-party data to create new ad networks tailored toward industries of all kinds. As third-party cookies fade and privacy concerns mount, reflects a broader shift in digital advertising where data collaboration and non-traditional vendors/publishers play a significant role in reaching target audiences.

  • Data is King: The continued growth of commerce media is yet another point in favor of brands developing robust first-party data strategies. Marketers must ensure their data house is in order and have the right creative assets to connect with audiences on diverse networks.
  • Navigating Fragmentation: The fragmented nature of commerce media necessitates careful partner selection. Advertisers should prioritize networks with high data quality and transparent measurement practices.
  • Key Stat: The potential enterprise value of commerce media in the US is estimated at a staggering $1.3 trillion, highlighting the vast opportunity for marketers who are willing to embrace this evolving channel.

Trend #2: CTV: Reaching Maturity

CTV is finally delivering on its long-promised potential, offering advertisers cost-effective, high-quality inventory and precise targeting capabilities. And while CTV’s measurement shortcomings remain, marketers nevertheless have several solutions that can help them piece things together.

  • Addressability and Targeting Enhancements: Alternative IDs and data clean rooms are enhancing addressability on CTV, allowing for granular audience targeting and personalized experiences.
  • Measurement Challenges: While targeting has advanced, measurement remains an ongoing challenge. While the industry continues to grapple with what CTV measurement solutions should look like, advertisers should move beyond legacy metrics and focus on measurable business outcomes like sales lift, footfall attribution, and brand favorability.
  • Key Stat: US CTV ad spending is projected to reach $32.6 billion in 2025.

Trend #3: AI: Beyond the Hype

With the initial AI frenzy steadily subsiding, marketers are adopting a more pragmatic approach, identifying practical applications and integrating AI into core systems and everyday workflows. The goal, as with all things AI, is not to replace human expertise, but to augment it—giving marketers the tools to ask better questions and get more insightful answers.

  • Solving Business Problems: Aligning AI initiatives with specific business needs is crucial. The report highlights the importance of tailoring AI tools to an organization's unique goals and context.
  • Strategic Asset for Media: Generative AI’s impact is expected to be significant on the media buying side. LLMs can analyze complex datasets to optimize media spend, refine partner selection, and gain a competitive edge.
  • Key Stat: 53.2% of marketers believe AI is overhyped, showing the need for a more realistic assessment of its capabilities.

Trend #4: Search: Evolving Beyond Google

Search behavior is transforming, with generative AI starting to syphon off meaningful search traffic and younger generations increasingly relying on social platforms like TikTok and Instagram for discovery. While Google remains an essential channel, marketers can benefit from experimenting with allocating portions of their search budget to places like TikTok, Amazon, commerce media, and elsewhere.

  • Diversifying Search Strategies: Advertisers need to adapt to shifting search winds, exploring search advertising opportunities beyond Google. Experimenting with new tactics on platforms favored by younger demographics, in particular, is essential.
  • Meeting Consumers on New Platforms: As AI and influencers increasingly shape consumer perception, brands must ensure their online presence evolves accordingly to effectively forge connections with target audiences.
  • Key Stat: 63% of daily TikTok users aged 18-24 say they utilize the platform as a search engine, highlighting the changing dynamics of online search.

Conclusion

The 2025 advertising landscape presents both opportunities and challenges. By embracing data-driven strategies, leveraging emerging technologies responsibly, and adapting to evolving consumer behaviors, marketers and advertisers can achieve impactful results.

Download the full report to get deeper insights into the trends poised to shape advertising in 2025.