The advertising industry is poised for significant changes in 2025, driven by emerging trends, recent market movements, and shifting consumer behaviors. According to Dentsu's latest forecast, global ad spend is expected to grow by 5.9% in 2025, outpacing the global economy by 2.7 percentage points[1]. This growth is largely attributed to the increasing adoption of digital advertising, with digital ad spend projected to increase by 9.2% in 2025, capturing 62.7% of global ad spend[1].
Key areas of interest include retail media, streaming TV, influencer marketing, and AI-driven advertising. The rise of connected TV (CTV) is particularly noteworthy, with ad spend on CTV expected to grow by 18.4% in 2025, driven by the increasing popularity of ad-supported streaming services[1][4].
Recent deals and partnerships also indicate a surge in M&A activity in the advertising industry. Omnicom's proposed acquisition of Interpublic Group could trigger a domino effect, prompting further moves among agency giants and private equity firms[2][5]. Companies like Accenture, AppLovin, and The Trade Desk are expected to be active acquirers, with a focus on retail media, streaming TV, and AI-driven advertising[2].
Emerging competitors, such as private equity-backed independent ad agencies, are also expected to make significant moves in 2025. These agencies, including DEPT, Horizon Media, and PMG, are likely to invest in innovation and compete with global marketing giants[2].
In terms of consumer behavior, there is a growing shift towards digital channels, with 83% of advertisers planning to shift their ad dollars to explore different channels and platforms in 2025[4]. The increasing importance of contextual targeting and creative alignment with content genres is also becoming more apparent, with a Yahoo study showing that contextually relevant ads on CTV drive greater attention and are better received by consumers[4].
Industry leaders are responding to these challenges by investing in AI-driven solutions, with 96% of advertisers saying AI will have a major or moderate impact on advertising and marketing[4]. Agencies are also seeking to provide advertisers with more control and choices, allowing them to navigate the complex digital advertising landscape[4].
Compared to previous reporting, the current conditions indicate a more optimistic outlook for the advertising industry, with a focus on digital transformation and AI-driven innovation. The industry is expected to continue evolving rapidly, with significant changes in consumer behavior, ad spend, and market dynamics. As we enter 2025, the advertising industry is poised for a year of innovation and growth, driven by emerging trends and shifting consumer behaviors.
This content was created in partnership and with the help of Artificial Intelligence AI
