2025 Media Predictions

AI, AI, AI…

In our predictions last year, we forecasted that 2024 would see the expansion of AI across all media, including content creation, and increased personalisation of content. At that time, marketers were beginning to experiment with ChatGPT and a few other basic AI tools. However, we have now observed the adoption of many more generative AI tools to enhance efficiency, creativity, and effectiveness.

We predict now that this will explode even further in 2025 and will become completely unavoidable for advertisers, whether that be in their own company and processes, or that of the platforms they use. It is anticipated that 2025 will drive toward a “fully addressable, shoppable and accountable media system”.

AI is not limited to ChatGPT or any single implementation; it is now integrated into everything that we do. We expect AI to influence many areas, and all subsequent predictions are closely linked to greater automation and AI. Some examples of AI’s impact include hyper-personalised ads tailored to individual preferences and behaviours, enhanced predictive analytics for more accurate anticipation of consumer needs and trends, dynamic creative content, improved customer insights, and an increase in chatbots and virtual assistants, which will play a significant role in customer engagement by providing real-time support and personalised recommendations.

Hyper-personalisation is key

With the rise of artificial intelligence and technological advancements, customers are beginning to expect personalised communications as a standard practice, even if they do not explicitly acknowledge it. They are increasingly disengaged with brands that provide generic and irrelevant content. Despite concerns about data privacy due to cookie consent, 83% of customers are still willing to share their data in exchange for a more personalised experience and importantly, companies incorporating personalisation into their strategies are experiencing increases in sales and profitability as a result.

By 2025, hyper-personalisation will revolutionise marketing and customer experiences. Brands must develop and implement personalised media strategies to foster greater engagement with their customers. It is not merely about placing advertisements in front of consumers but delivering customised experiences that feel personal, drive loyalty, and increase sales. Marketing should now prioritise understanding and meeting individual needs, aided by AI advancements that enable brands to create more intuitive and tailored interactions, ensuring each touchpoint is personal and relevant.

Data integration is no longer a ‘nice to have’

Another prediction from last year focused on the decline of cookies and the importance of integrating first-party data. Despite Google’s announcement in July altering that trajectory to some extent, the significance of data integration remains undeniable. The delivery of personalised content and customer journeys will rely heavily on advanced automation and AI, as well as the seamless integration of a brand’s own data.

Both first-party data, collected directly from customers through interactions on your website, and zero-party data, voluntarily shared by customers (e.g., via CRM), are essential for integrating with ad platforms to create highly targeted, personalised, and relevant marketing campaigns.

Data integration also enhances the tracking and measurement of ad performance, enabling businesses to understand how different segments respond to various ads. This facilitates the continuous optimisation of campaigns, ultimately leading to more efficient use of advertising budgets and higher returns on investment.

Given the increasing importance of first-party data, the deprecation of third-party cookies, and the necessity for personalised customer experiences, we anticipate significant growth in Customer Data Platforms (CDPs) by 2025. These powerful tools assist businesses in collecting, unifying, and managing customer data from multiple sources to create a comprehensive view of each customer.

The market for CDPs is expected to experience substantial growth, with projections indicating an increase from $7.4 billion in 2024 to $28.2 billion by 2028. This growth is partly driven by ad platforms themselves, which are now beginning to develop their own CDPs. For instance, platforms like Amazon DSP are integrating with CDPs to enhance targeting and personalisation by consolidating first-party data.

Pushing creativity boundaries

The knock-on effect of greater personalisation and automation is that now customers have grown accustomed to the dynamic media landscape, and the bar is rising for what captures their attention.

By 2025, maintaining and consistently earning consumer attention will be imperative. While brands are now adept at developing format-first creative content tailored to specific platforms, this approach alone is now insufficient to stand out. Creative innovation will be crucial for engagement and differentiation, potentially through AI-generated content, interactive experiences, innovative camera techniques, and novel storytelling methods. Authentic storytelling will be essential, with advertisements needing to be exceptionally well-crafted to immediately captivate audiences’ attention and interest.

Furthermore, creativity must extend to platform diversity. Brands should explore new channels such as connected TV (CTV), emerging social media platforms, and other digital channels to engage consumers in innovative and impactful ways.

Retail and Media Convergence

Another area projected to gain importance for marketers in 2025 is second party data, particularly retail data obtained through Retail Media Networks (RMNs). Advertising on retail websites has evolved significantly from being merely a digital version of in-store promotion. Retailers are increasingly aiming to capture more media budgets from brands by diversifying their ad inventory and platforms to offer integrated solutions throughout the purchasing process.

At its core, retail media involves advertising on retailer websites and apps. However, RMNs are sophisticated, retailer-operated digital ad platforms that allow brands to target audiences with personalised ads on both the retailers’ websites and offsite locations, as well as in-store. Due to the extent and sophistication of the data they hold, these networks enable more precise targeting and personalised marketing based on shopping habits, tailoring content to consumer needs.

Unsurprisingly, the leader in the space is Amazon, however other retailers are racing to catch up and offer their own advertising solutions. For example, in the US, Walmart’s recent acquisition of Vizio, which has over 18 million active accounts on its smart televisions, expands Walmart’s ad inventory and data capabilities, potentially advancing shoppable television. The rapid evolution of this sector suggests that retailers could take up much of the entire advertising market in the years to come.

However, retailers are not the only ones to know the shopping preferences of consumers. For example, other entities, such as payment processing companies, are now also entering the media business with an understanding of consumer shopping preferences. PayPal is one of the most recent companies to announce the creation of their new advertising platform, and Paramount Advertising has partnered with Mastercard to offer advertisers insights into the performance of their media investments. These new players provide advertisers with limited shopping data alternative access to shopper intelligence across various categories and sales channels, both online and offline.