There is always something new in media and advertising. That’s what makes it such a fun space to work in. As we approach the new year, several significant trends are emerging in the media and advertising landscape. These trends highlight the evolving nature of consumer engagement as well as technological advancements and will surely shape the industry in 2025.
The Creator Economy and Influencer Marketing
The communities that creators bring together hold a great deal of power to build awareness and brand loyalty among future audiences. Therefore, it’s no surprise that the creator economy has grown exponentially over the past three years and is predicted to continue to grow. According to an article in Digiday, the creator economy is currently worth $250 billion and will double to nearly $480 billion by 2027. We’ll likely start to see more standardization in contracts, payment terms and deliverable terms in 2025 as brands continue to increase their budgets for these efforts. There is no denying influencer marketing allows brands to reach key audiences and establish credibility with an authentic, trusted voice. Kantar’s recent report, the Creator Digest, predicts this trend will continue through 2025 and beyond, especially with smaller, more specialized influencers.
The Use of Generative AI in Marketing Strategies
Generative AI has unleashed countless ways for advertisers to reach consumers efficiently and effectively, from more personalized advertisements to automating creative tasks and production. However, the industry will face many challenges related to authenticity and transparency. Coke recently launched their holiday ad with a video commercial completely generated by AI. It was supposed to be a reimagination of the iconic “Holidays are Coming” ad of 1995, but the spot has really fallen flat with consumers. Social media users took to the platforms to call out Coca-Cola for taking the life and cheer out of the holidays, citing the ad lacked authenticity, something the brand did not expect. The adoption of generative AI is accelerating in other ways as well. Brands are leveraging AI for audience insights and campaign optimization. This enables marketers to make real-time updates and optimizations to enhance engagement and drive results. Finding that balance of when to use and how to use generative AI will be a challenge brands will have to face in 2025 while working to maintain ad quality, effectiveness and customer respect.
Standing Out with Experiential Marketing
The average mobile user is exposed to thousands of brand messages a day, and if a message or ad doesn’t connect with the consumer based on the right targeting and right message, it is quickly forgotten. Creating that emotional tie, that memorable interaction is key, and that’s why many brands are turning back to the classic marketing strategy of in-person activations or experiential marketing. According to Ad Age, a number of industry experts agree that experiential marketing will continue to grow in relevance and effectiveness through 2025. In-person activations allow for direct consumer interaction, a chance to build authenticity and loyalty. Digital elements like social ads and video still play a supporting role and can even help amplify campaign reach.
Expanding OTT Viewership and Attribution
The transition of linear TV viewership to Over-The-Top (OTT) viewership has been a long time in the making. Fueled by the pandemic of 2020 and the penetration of smart TVs in U.S. homes, OTT is now the fastest growing media channel. In 2022, streaming platforms surpassed cable network viewership with the largest share of US TV viewing for the first time ever, and that number has continued to grow ever since. According to a recent article by Nielsen, TV connected devices now reach 75% of people in the U.S. 2 and older. OTT offers great opportunities for advertisers of all sizes to leverage the precision of digital advertising with the high-impact, mass reach tactic of TV. In the past TV ad breaks were dominated by big ad spenders, CPGs, automotive, etc. Now small to mid-size brands alike can share the same screen space in a hyper-targeted way. Personalization and interactive ad formats are trending. From QR codes to shoppable ads, we’ll continue to see brands offering more interactivity. This will allow for improved attribution tracking and more in-depth consumer insights.
Leveraging First Party Data
In 2025, first party data is expected to play a pivotal role in digital marketing, enabling brands to build stronger, more personalized relationships with their current customers and potential customers alike. As consumers become increasingly concerned about privacy, the privacy laws on data usage are also becoming more comprehensive. Brands will need to be transparent about data collection and usage and provide true value for the information the consumer is divulging. With that trust in place, leveraging first party data alongside other targeting tactics will allow marketers to further maximize campaign performance.
If you are as excited about these trends as we are, drop us a note. We’d love to connect on how we can help you advance your advertising strategies in 2025.
