Key 2025 marketing trends: navigating the future of advertising
by Smithfield

As we approach 2025, the advertising landscape continues to evolve rapidly. After years of economic uncertainty and technological transformation, we’re entering a phase where stability meets innovation. From AI-driven audience insights to navigating digital fragmentation, the future of marketing requires agility, creativity, and a clear understanding of shifting consumer behaviours.

Digital advertising growth

Global advertising spend is projected to reach $1.15 trillion in 2025, with digital channels continuing to grow at a robust 7.2% (WARC). The UK remains the leader in Western Europe for digital ad spend share, reflecting its sustained digital acceleration.

This growth is underpinned by a more stable economic outlook, with inflation predicted to ease to 3.5% globally (IMF) and 2.1% in G20 nations (OECD). As conditions improve, marketers are focusing on long-term investment strategies while balancing immediate campaign performance.

The context of trust

Trust is now one of the most valuable currencies in advertising. IPSOS’s Global Trends survey reveals that 77% of people hold favourable opinions of brands, far surpassing trust in politicians and the media. For brands, this represents a crucial opportunity to strengthen connections by demonstrating authenticity and aligning with audience values.

Building trust goes beyond messaging—it requires brands to align their strategies with the right environments. Selecting platforms that reinforce credibility and resonate with audience expectations is paramount. For instance, The Guardian recently announced its decision to leave X (formerly Twitter), citing concerns over brand safety and platform values. This move underscores the importance of maintaining alignment between a brand’s ethos and the environments in which it engages.

At Smithfield, we help brands navigate this evolving landscape with context-first strategies, ensuring campaigns not only resonate emotionally but are also grounded in trusted and relevant environments.

AI redefines media planning

Artificial intelligence is reshaping how media strategies are devised and delivered. While structured data tools such as Multi-Touch Attribution (MTA) and Marketing Mix Modelling (MMM) remain central to campaign measurement and optimisation, the real transformation lies in leveraging unstructured data.

Advances in generative AI allow marketers to extract insights from complex data sources like national surveyrs, social listening, behavioural trends, and customer interactions. Techniques such as digital twin modelling enable brands to create virtual panels and simulations from robust datasets, helping them to better understand their audiences, test strategies, and forecast outcomes.

At Smithfield, we are exploring next-generation AI tools to uncover these deeper audience insights. By integrating these innovations with established analytics, we help our clients navigate a rapidly evolving media landscape with confidence and precision.

Fragmentation in the digital landscape

The UK’s digital media landscape is more fragmented than ever, with audiences engaging across an expanding range of platforms. Emerging technologies like voice assistants and generative AI chatbots are reshaping consumer interactions. Savanta’s AI Impact report reveals that 72% of voice assistant users want expanded functionality, underscoring the demand for more sophisticated digital experiences.

For advertisers, this complexity requires integrated cross-channel strategies to maintain consistency and impact. With traditional media still commanding significant investment, brands need to master the interplay between emerging and established channels to connect effectively with their audiences. Measurement is key here and creating frameworks that measure the impact of ad exposure from offline and online channels means we can diversify media plans without losing sight of ROI.

In line with this trend, Amazon’s recent moves in the AI space demonstrate its commitment to innovation and customer-centricity. Jeff Bezos, Amazon’s founder, has made a strategic investment in Perplexity AI, a startup challenging Google’s search dominance. This investment is speculated to double or triple, with Perplexity AI forecasting a $8 billion valuation according to WSJ. Furthermore, Amazon plans to integrate Anthropic’s Claude AI into Alexa, potentially transforming the voice assistant landscape.

These developments align perfectly with Amazon’s mission “to be Earth’s most customer-centric company” and its core values of customer obsession and passion for invention. By enhancing Alexa’s capabilities and investing in cutting-edge AI technology, Amazon is not only adhering to its vision of being “Earth’s most customer-centric company” but also positioning itself at the forefront of the evolving digital landscape, ready to serve the expanding needs and wants of consumers.

The power of personalisation

Personalisation remains a cornerstone of effective marketing, but its success lies in thoughtful implementation, McKinsey reports that personalisation can reduce customer acquisition costs by 50% and boost ROI by 10%, yet over-segmentation risks diluting campaign impact.

Marketers must strike a balance—knowing when to target specific segments and when to focus on a broader message that resonates across diverse audiences. Combining creative excellence with strategic insight ensures personalisation delivers meaningful results.

Looking ahead

As we head into 2025, the interplay of trust, AI-driven innovation, and digital fragmentation presents both opportunities and challenges for marketers. Success will depend on agility, creativity, and a focus on building authentic connections with audiences.

By embracing these trends and applying a forward-thinking approach, brands can navigate complexity while positioning themselves for long-term growth.

To discover how Smithfield can help your brand build trust, navigate emerging platforms, and optimise your media planning strategy in 2025 and beyond, contact us at hello@smithfieldagency.co.uk.  Let’s shape the future of your advertising together.

December 11, 2024

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