Global ad spending is set to reach unprecedented levels

The marketing industry is hitting a major milestone in 2025, global ad spending is projected to surpass $1 trillion for the first time. That’s huge. It means businesses are pouring more resources into reaching their audiences, capitalizing on the growing influence of platforms like streaming TV, gaming, and retail media. But here’s the catch, this surge in spending doesn’t mean teams are getting more resources to work with. In fact, they’re expected to do more with less.

Budgets are tight, expectations are high, and competition is relentless. Chief Marketing Officers (CMOs) are facing mounting pressure to drive results without additional financial support. Agencies are feeling the squeeze too, client demands keep rising while profit margins shrink. Companies that figure out how to simplify operations while maintaining impact will be the real winners.

We’re also seeing major shifts in the industry structure. The recent $13 billion merger of Omnicom and Interpublic Group signals a trend toward consolidation, where scale becomes a strategic advantage. The reality is clear: the marketing landscape is changing, and those who adapt quickly and effectively will thrive.

Brands must focus on authenticity and values

Consumers today are more informed, more vocal, and more selective. Research from iHeartMedia and Pushkin Industries shows that 44% of consumers feel ignored by advertisers, and 72% actively avoid brands that don’t align with their values. That’s a wake-up call. If brands want to succeed in 2025 and beyond, they need to move past superficial engagement and focus on what really matters, authenticity.

The old approach of “mirror advertising,” where brands try to reflect their audience’s identity back at them, isn’t cutting it anymore. People can see through it. What they want is for brands to be real, boldly stating their values and standing by them. A great example? Nike’s “Winning Isn’t for Everyone” campaign. It leaned into the brand’s core belief in the spirit of competition and excellence, and while it was polarizing, it resonated with their audience in a meaningful way. That’s the power of authenticity.

Consumers today want brands that don’t just talk the talk but walk the walk. Companies that embrace their values and communicate them effectively will build lasting relationships with their customers. As Victoria Jordan from My Code put it, brands need to think of this as a “renewal of vows” with their audience, stating who they are, what they stand for, and why it matters.

Generative AI will drive marketing productivity

Artificial Intelligence (AI) is everywhere in marketing. Generative AI offers enormous potential to improve productivity, automate repetitive tasks, and unlock new possibilities in content creation and customer engagement. But, as with any powerful tool, it requires smart execution.

In 2025, marketers will focus on using AI behind the scenes rather than in the spotlight. AI can take care of processes such as campaign planning, audience segmentation, and creative production, helping brands do more in less time. The key is subtlety. Consumers still prefer a human touch, and poorly executed AI-generated content can feel impersonal or, worse, alienating. Remember Coke’s holiday ad misstep? It tried too hard to showcase AI’s capabilities, and the result fell into the “uncanny valley,” making audiences uncomfortable.

Brands that succeed with AI will integrate it in ways that feel natural and improve the user experience without overshadowing their message. As the hype settles, the focus will shift to practical applications that deliver real business value.

The challenge? Navigating the overwhelming number of AI tools flooding the market. Every platform is racing to introduce AI-powered features, but the winners will be those that prioritize function over flash.

CMOs are under pressure to deliver results with limited resources

The role of the Chief Marketing Officer (CMO) is changing dramatically. It’s no longer just about brand awareness and creative campaigns, CMOs are now responsible for driving growth, improving customer experiences, and justifying every dollar spent. The expectation to “do more with less” has never been more pronounced, and it’s putting marketing leaders under immense pressure to optimize their strategies and prove ROI (Return on Investment).

According to Gartner, 55% of marketing decision-makers admit that their campaigns sometimes or always fail to justify their investments. This highlights a significant challenge, making sure that marketing efforts align with business objectives and deliver tangible results. The rise of data-driven decision-making means CMOs can no longer rely on intuition alone; they need to adopt a commercial mindset that embraces analytics, collaboration, and efficiency.

A major hurdle for many CMOs is what Ross Martin, co-founder and president of Known, calls “FOFO”, the fear of finding out. Many marketers hesitate to dig into performance data for fear of uncovering wasted spend or underperforming campaigns. This reluctance can hinder growth and prevent teams from making necessary adjustments to improve efficiency. Successful CMOs in 2025 will be those who embrace transparency and take a proactive approach to measuring and refining their strategies.

In addition, the scope of the CMO role is expanding. As Biljana Cvetanovski, a partner at McKinsey, notes, marketing is no longer confined to a single department. It touches nearly every aspect of the business, from customer service to sales and beyond. This requires CMOs to develop cross-functional collaboration skills and focus on broader business outcomes, rather than just campaign metrics.

Social media’s role in marketing will change with new content strategies

Social media continues to be an indispensable channel for brands, but the way it’s being used is changing. The market is shifting due to the potential TikTok ban, the ongoing decline of X (formerly Twitter), and the rise of new platforms and trends. Despite these uncertainties, U.S. social media ad spending is projected to rise from $75 billion in 2024 to $82 billion in 2025, reflecting the channel’s enduring appeal.

In response to changing consumer behavior, marketers are adjusting their strategies to prioritize deeper engagement and authenticity. One trend is the rise of long-form content, such as extended videos, podcasts, and newsletters. According to research from Billion Dollar Boy, 70% of marketers plan to increase their investment in long-form content in 2025, recognizing its potential to foster stronger relationships with highly engaged audiences.

Brands are also becoming more strategic in their partnerships with influencers and creators. Rather than focusing on broad appeal, marketers are building relationships with niche creators who have a strong, dedicated following within specific communities. This approach allows brands to create more meaningful connections and achieve higher engagement rates. As Christopher Douglas, Senior Manager of Strategy at Billion Dollar Boy, suggests, the key to success lies in showing up authentically and speaking the audience’s language, whether that means embracing viral “flash-in-the-pan” moments or adopting an informal, “we’re not a brand, we’re a bro” tone.

Additionally, brands are experimenting with “unhinged” content, quirky, unconventional, and highly relatable material that resonates with younger audiences like Gen Alpha. This trend reflects a broader movement toward authentic, raw storytelling, as audiences gravitate toward brands that feel human and relatable.

While platforms like TikTok Shop are fueling social commerce and reshaping how consumers shop online, brands must remain flexible and adaptive. Regulatory changes, platform shifts, and changing consumer preferences mean that agility will be key in navigating the social media landscape in 2025.

First-party data remains key

As data privacy regulations continue to tighten and third-party cookies become increasingly obsolete, marketers are being forced to rethink their data strategies. The delay in Google’s planned phase-out of third-party cookies in Chrome, initially set for 2024, has provided some breathing room, but the shift toward privacy-first marketing is inevitable. Brands must prioritize the collection and utilization of first-party data, information collected directly from customers through owned channels like websites, apps, and loyalty programs.

First-party data is valuable because it offers a direct line to consumer insights while complying with changing privacy laws. Unlike third-party data, which is aggregated from various external sources, first-party data allows brands to build deeper relationships based on trust and transparency. However, collecting and using this data effectively requires investment in the right technology and strategies.

Data clean rooms, which enable brands to analyze and share data in a privacy-compliant way, are emerging as a popular solution. These secure environments allow multiple parties to collaborate without exposing sensitive information, providing marketers with valuable insights while maintaining consumer privacy. But as Mari Docter, Senior VP of Data Strategy at Novus, warns, investing in clean rooms without a clear strategic purpose can lead to “analysis paralysis,” where marketers get bogged down in data without driving actionable outcomes.

The shift toward privacy-centric marketing also means a return to old-school techniques like geographic targeting and demographic segmentation. Marketers are increasingly relying on tactics such as ZIP code-based targeting and contextual advertising to reach audiences without violating privacy guidelines.

Ultimately, the brands that succeed in 2025 will be those that strike the right balance between data-driven precision and privacy compliance. Investing in comprehensive first-party data strategies, ensuring ethical data practices, and adapting to regulatory changes will be key for marketers looking to future-proof their operations in an evolving landscape.

Marketing and loyalty programs are becoming increasingly interconnected

As brands strive to increase customer retention and maximize the value of first-party data, the integration of loyalty programs with broader marketing efforts has become a top priority. In the past, loyalty initiatives and marketing campaigns often operated in silos, but in 2025, brands are recognizing the need to unify these efforts to create a better customer experience.

Loyalty programs are evolving into sophisticated engagement ecosystems that gather valuable consumer insights. These insights allow marketers to personalize content, offers, and communication based on individual preferences and behaviors. However, a major challenge persists, data fragmentation. According to Forrester Research, 80% of B2C CMOs in the U.S. still rely on separate data sources for loyalty and marketing efforts, leading to inefficiencies and missed opportunities.

The key to success lies in consolidating customer data across channels to create a unified customer profile. In synchronizing marketing and loyalty data, brands can deliver personalized experiences that resonate with consumers and drive repeat purchases. This approach also helps brands to segment their audience more effectively, predicting future behaviors and optimizing outreach strategies.

Joe Stanhope, Vice President and Principal Analyst at Forrester, highlights that the future of marketing is about “synchronizing data underpinnings,” making sure that loyalty and marketing efforts work together to form a holistic view of the customer journey. Brands that achieve this level of integration will be better positioned to foster long-term relationships and boost customer lifetime value (CLV).

Looking ahead, we can expect to see more partnership-driven loyalty programs that expand value propositions beyond traditional rewards. For example, co-branded offers, subscription-based perks, and exclusive experiences tailored to individual preferences will become more common as brands seek to differentiate themselves in an increasingly competitive landscape.

Nielsen’s dominance in media measurement is facing challenges

For decades, Nielsen has been the gold standard in media measurement, providing advertisers with audience insights and ratings. However, the media is rapidly changing , and advertisers are demanding more granular, cross-platform measurement capabilities that align with modern viewing behaviors. The rise of alternative currencies and advancements in first-party data integration are challenging Nielsen’s long-standing dominance.

The shift to a multi-currency measurement system, where multiple data providers and methodologies are used to track media performance, is gaining traction. According to Advertiser Perceptions, two in three advertisers believe multi-currency is the future, and three in five have already used alternative currencies for TV transactions in the past year. This shift helps brands to customize measurement approaches to better align with their campaign goals, whether focusing on audience demographics, engagement metrics, or conversion outcomes.

However, despite the growing number of competitors, Nielsen remains a formidable player. Industry experts, such as Erin Firneno, Senior VP of Business Intelligence at Advertiser Perceptions, suggest that the market isn’t moving away from Nielsen entirely but rather toward a “Nielsen-and” approach, where brands will utilize Nielsen alongside alternative solutions to gain deeper insights.

Sean Cunningham, CEO of the Video Advertising Bureau, emphasizes that integrating first-party data with media measurement tools will provide marketers with a more comprehensive understanding of their audience. This integration allows marketers to tie measurement data directly to key performance indicators (KPIs), making it easier to demonstrate the impact of advertising efforts on business outcomes.

The future of media measurement will likely involve a hybrid model where traditional metrics, such as ratings, are complemented by advanced analytics and attribution models. This evolution will empower advertisers with greater control and flexibility over their media investments.

Branded mobile apps are making a resurgence

Mobile apps have long been a key component of digital marketing strategies, but in recent years, their growth has slowed due to high development costs and maintenance challenges. However, advancements in generative AI and low-code/no-code development platforms are breathing new life into branded apps, making them more accessible and cost-effective than ever before.

With U.S. mobile ad spending projected to exceed $228 billion in 2025, 82.3% of which will come from in-app advertising, brands are recognizing the value of investing in mobile platforms to engage consumers directly. Companies like Nordstrom, Burger King, and Chick-fil-A are leading the charge by improving their apps with AI-driven features such as chatbots, voice assistants, and personalized recommendations. These capabilities help brands provide smooth, personalized experiences that keep customers engaged and drive revenue growth.

According to Nicole Greene, Vice President and Analyst at Gartner, AI is changing app development by letting marketers deploy new features faster and with greater efficiency. AI-driven insights allow for real-time optimization of user experiences, improving customer retention and engagement.

Partnerships with third-party apps are becoming increasingly important. Rather than expecting consumers to download standalone branded apps, many companies are opting to integrate their services within popular platforms such as delivery, fitness, and financial apps. This strategy allows brands to meet customers where they already spend their time, enhancing convenience and reducing barriers to engagement.

Looking forward, marketers will need to focus on app utility and user experience to make sure their mobile strategies remain effective. Whether through loyalty program integration, AI-powered customer support, or gamification features, the goal will be to create apps that provide tangible value beyond mere transactional functions.

Political uncertainty under Trump’s administration could impact marketing strategies

As the U.S. enters another term under President Donald Trump, marketers are facing uncertainty regarding economic policies, trade regulations, and consumer sentiment. The proposed increase in tariffs on imported goods could lead to higher consumer prices, which may impact purchasing behavior and force brands to adjust their pricing and promotional strategies.

One of the most immediate concerns for marketers is the potential tightening of advertising budgets. If inflation worsens or economic uncertainty grows, businesses may prioritize marketing channels with a proven high return on investment (ROI), shifting resources away from experimental or emerging platforms. In such an environment, performance-driven marketing strategies that focus on direct sales and measurable outcomes will likely take precedence over brand-building initiatives.

Regulatory uncertainty is another factor. During his previous administration, Trump rolled back several internet privacy regulations, and marketers are bracing for potential changes that could impact data collection and targeting practices. A rollback of current privacy laws could open new opportunities for marketers to use data more aggressively, but it could also lead to backlash from privacy-conscious consumers and advocacy groups.

Brand safety is also expected to become a major challenge. Trump’s previous term saw heightened polarization in the media, and his return to office could further amplify these divides. Advertisers may need to be more cautious about ad placements, making sure their brands do not appear alongside controversial or divisive content. Additionally, social media platforms may experience shifts in content moderation policies, particularly under the influence of figures like Elon Musk, potentially increasing risks for brands regarding misinformation and negative associations.

Despite these challenges, some marketers see opportunities in the political climate. News media platforms often experience a surge in viewership during political upheavals, creating a potential boon for advertisers looking to reach engaged audiences. Brands that adopt a proactive, adaptable approach to these changes will be better equipped to navigate the complexities of the 2025 political landscape.

Key takeaways

  • Focus on efficiency in ad spending: As global ad spending surpasses $1 trillion, marketers must prioritize operational efficiency. Leaders should adopt AI and automation tools to streamline processes and improve ROI while managing tightening budgets and increasing expectations for performance.

  • Authenticity and brand values are key: Consumers demand brands that align with their values. Marketers must move beyond superficial targeting and focus on clear, bold brand messaging that resonates deeply with their audience to drive loyalty and avoid alienation.

  • Data privacy and first-party data: With evolving privacy regulations and the decline of third-party cookies, businesses must accelerate their investment in first-party data strategies. Companies should integrate CRM and loyalty program data to create personalized and seamless customer experiences while maintaining compliance.

  • AI-driven productivity gains: Generative AI continues to influence marketing, particularly in campaign production, data analysis, and content creation. Marketers should use AI behind the scenes to increase efficiency and reduce costs, focusing on practical applications rather than public-facing gimmicks.

  • Social media shifts and long-form content: Social media remains a powerful channel, but marketers need to adapt to shifting platforms and content consumption habits. Focusing on long-form content and niche creators will help build deeper connections with targeted audiences while maintaining relevance in a fragmented social landscape.

Alexander Procter

January 24, 2025

14 Min