The ad tech industry is like a high-speed rollercoaster – exhilarating, unpredictable, and filled with twists and turns. After a year marked by significant advancements and innovation in 2024, we’re now hurtling toward an even more exciting 2025.
In fact, according to Statista, programmatic advertising was worth 418 billion U.S. dollars in 2021. This figure is expected to reach 725 billion by 2026.
That said, without further ado, let’s delve straight into the ad tech trends and developments.
toc
Top Ad Tech Trends to Look Out for in 2025
Here’s how we think the future of ad tech will look in 2025 and beyond:
1. Connected TV (CTV)
CTV consumption and advertising have already cemented their place in the U.S. Other countries, like India and China, have also made significant strides in consumer adoption of CTV. The cheaper and easier availability of Smart TVs & dongles (Amazon Fire Stick, Chromecast, etc.), together with compelling content propositions of leading OTT players, will only accelerate this change moving forward.
As consumers spend more time on this device and content format, ad dollars will also eventually move in this direction. The U.S. market is expected to see growth for both subscriber-funded SVOD (Subscription Video-on-Demand) content and advertiser-funded AVOD (Advertising Video-on-Demand) content on CTV.
2. Video Ads Adoption
Video’s influence will only grow as brands continue to leverage its power. Studies show that viewers retain 95% of video information compared to just 10% with text, making it a key retention driver.
Social media platforms fueled video consumption last year, prompting brands to adapt their campaigns. Interactive shoppable video ads capitalize on the e-commerce boom. Contextual video ads offer publishers an alternative to third-party data, while social commerce provides opportunities for video content.
Large brands leverage video ads for brand awareness and education, but understanding audience consumption is crucial for success.
3. Hyper-Personalization
Hyper-personalization is a game-changer within the ad tech industry. It involves targeting the right user at the right time on the right channel with a personalized, contextual message. This marketing trend continues to aid advertisers in providing targeted experiences to consumers through segmenting and smart audience management using technologies like data analytics, AI, and ML.
AI/ML-led contextual ads to drive app and product recommendations have just begun to take off, and this trend will continue to grow significantly this year and beyond.
4. Geotargeting
Out-of-home (OOH) advertising is making a comeback. However, we are not talking about traditional billboards, as OOH options have become far more sophisticated. Advertisers can use programmatic geolocation signals and blend online & offline usage data to better connect with their audiences on the go.
5. Augmented Reality and Virtual Reality
The increase in the popularity of Augmented / Virtual Reality is nothing new. However, post-pandemic, there has been a significant acceleration in its use. AR and VR offer a multitude of possibilities for brands to engage with consumers both online and offline.
Combined with AI, Mixed Reality (MR), which blends AR & VR, can become an extension of the human senses. Some global brands have been early adopters of this technology to open 24×7 Virtual Malls, design testing models for home decor, and revolutionize brand and retail commerce.
6. Integrated Consumer Journeys
Consumer journeys, both online and offline, have blended, making ad spend consumer-focused rather than media-focused. The consumer is present across multiple channels, and advertisers aim to reach them across online & offline channels to drive incremental engagement at the right time, on the right channel, with the right content, and at the right price.
7. Vernacularization
More people are coming online, and the percentage of consumers consuming digital content in local languages is increasing daily. The pandemic has also given a huge impetus to vernacular content consumption. Advertisers are leveraging this opportunity to reach the next 100 million new online shoppers, likely to have a vernacular affinity, to better contextualize their ads and improve response rates.
8. Change in Data Privacy
With 2025 set to bring significant changes to the media and marketing landscape, publishers and advertisers need to do more with less personal data. Google’s decision to delay removing third-party cookies from Chrome has given both publishers and advertisers time to dive into new opportunities connected to personal data collection.
9. Ads Gamification
Gamification of ads is expected to be one of the most engaging and effective advertising strategies, bringing fruitful results for publishers. Many users have already encountered such ads while playing games on smartphones or computers.
10. Resurgence of DOOH
The landscape of Digital Out-of-Home (DOOH) advertising is undergoing rapid evolution. Since the pandemic has long passed, there’s been a surge in people spending time outdoors. A data-driven approach to DOOH enables interactive outdoor advertising and nearly 100% resistance to ad fraud, providing a secure and effective advertising medium.
11. Widespread First-Party Data Adoption
The advertising industry has long relied on cookies to guide marketing strategies. However, with stricter privacy regulations, advertisers are exploring new ways to connect with audiences. Contextual targeting, which tailors ads based on a webpage’s content rather than personal user data, is expected to gain traction in 2025.
12. Retail Media Networks
According to eMarketer, retail media is set to be the biggest of digital advertising’s three major waves. Retail media networks (RMNs) are advertising platforms built by retailers to capitalize on their exclusive shopper data. These networks provide brands with various ways to reach customers through onsite ads, offsite campaigns, and in-store promotions.
Final Words
In conclusion, 2025 is expected to bring significant changes for Ad Tech, marked by innovation and the evolution of new ad tech solutions. The ad tech trends highlighted above provide a roadmap for advertisers and publishers to navigate this dynamic landscape successfully. Embrace these trends to stay ahead, adapt to change, and capitalize on emerging opportunities in the ever-evolving world of advertising technology.
Frequently Asked Questions: Ad Tech Trends
1. What is considered ad tech? Ad tech refers to tools and technologies, such as demand-side platforms, supply-side platforms, agency trading desks, ad servers, and ad networks, used by advertisers to serve relevant ads to relevant audiences.
2. What are ad tech products? Ad tech includes software and tools that agencies, brands, publishers, and platforms use to target, deliver, and measure digital advertising campaigns. Brands and agencies purchase advertising space using ad tech software platforms, which also help publishers price and sell ad space.
* Please Don't Spam Here. All the Comments are Reviewed by Admin.