As we dive into 2025, the advertising landscape is undergoing a massive transformation driven by new technologies, evolving consumer behavior, and changing regulatory frameworks.
Don’t feel like you’re prepared? Don’t worry, we have the perfect, last-minute cheat sheet to identifying the top trends for the upcoming year.
The future of advertising will be characterized by deeper personalization, smarter automation, immersive experiences, and a greater focus on sustainability and privacy. Brands, agencies, and retailers need to navigate these shifting trends to stay competitive.
In this article, we’ll break down the top advertising trends for agencies, retail marketers, and the broader advertising industry. We’ll also provide data, examples, and insights that illustrate how these trends shape the future.
1. Trends for Agencies in 2025: The changing role of advertising experts
a. Automation and AI-Powered Advertising
By 2025’s end, AI and automation will be deeply embedded in the advertising process. Already, tools like Google’s Smart Bidding and Facebook’s Automated Ads are changing how ads are created and optimized. In the coming years, agencies will rely heavily on AI for campaign management, media buying, content personalization, and performance measurement.
According to a 2023 McKinsey study, 88% of marketing professionals believe AI will fundamentally change how advertising works. Tools powered by AI will let agencies automate time-consuming tasks like optimizing bids in real-time, tracking customer behavior, and refining targeting to increase relevance. The key to success will be AI-human collaboration, with creative and strategic thinking handled by humans while AI takes care of data analysis and execution.
Example: In 2023, Coca-Cola used an AI-powered system to tailor its advertisements to different regions, adjusting creative elements like language, design, and messaging in real-time based on audience data. By the end of 2025, AI tools like these will be the norm across agencies.
b. Cross-Channel Integration
With consumers engaging with brands across multiple platforms — from social media to connected TVs and podcasts — cross-channel marketing will be a must for agencies. Hootsuite’s 2024 Social Media Trends Report suggests that 63% of marketers already consider cross-channel marketing a priority. By 2025, integrated advertising strategies will no longer be optional.
For example, a single campaign may need to span across YouTube, TikTok, Google Search, and streaming services — and agencies will have to craft cohesive stories across each channel while ensuring that brand messaging remains consistent. Tools like illumin are already helping brands integrate ads across multiple channels, but the real challenge will be measuring and optimizing these campaigns as consumers move across devices.
In a 2024 Nielsen study, brands that run cross-channel campaigns see a 24% increase in brand recall and a 17% increase in purchase intent, underscoring the effectiveness of integrated strategies.
c. Data-Driven Measurement and Attribution
In 2025, data privacy concerns will make measurement and attribution more complex. With third-party cookies phasing out and consumer preferences shifting toward more privacy-conscious behaviors, agencies will rely on first-party data, contextual advertising, and advanced attribution models to track ROI.
Agencies will be focused on integrating new attribution models that go beyond last-click and consider the full customer journey across touchpoints, from social media impressions to in-store visits. Technologies like clean rooms (a secure space where brands can analyze first-party data in partnership with other companies without compromising privacy) will become standard tools for measuring effectiveness.
2. Retail advertising trends in 2025: Shifting strategies for a more personalized shopper experience
a. Shoppable Ads and Social Commerce
By 2025, social commerce will be the dominant way to shop. Platforms like TikTok, Instagram, and Pinterest are already integrating shoppable ads that allow users to purchase directly within the app. As of 2024, 62% of Gen Z consumers are already shopping through social media, and this number is expected to rise.
Retailers will increasingly use shoppable video ads and interactive content to guide consumers through a purchase journey without leaving the platform. Moreover, augmented reality (AR) will play a huge role — imagine trying on clothes virtually or placing furniture in your living room before making a purchase, all via an ad.
Example: Nike has already integrated AR into its mobile app, allowing consumers to scan products in-store and visualize how they would look in different environments or on their bodies. This trend will be more prevalent in retail ads by 2025, enhancing product discovery and purchase convenience.
b. Hyper-Personalization through Data and AI
Retail marketers will use AI and data analytics to create highly personalized ads that anticipate consumer needs based on past behavior, location, and even current mood. With tools like Google Cloud AI and Salesforce’s Einstein, retailers can craft personalized product recommendations, targeted offers, and dynamic pricing tailored to individual shoppers.
In 2025, personalization at scale will be crucial, but this requires sophisticated data infrastructure. Retailers who use first-party data (data collected directly from consumers through loyalty programs, website interactions, etc.) will have the edge, as this data will be more reliable than third-party data adhering to stricter privacy laws.
A 2024 Salesforce survey found that 80% of consumers are more likely to make a purchase from a brand that offers a personalized experience. Retailers who invest in hyper-personalization will be better positioned to engage and retain customers.
c. Sustainability and Ethical Marketing
Sustainability will become a key pillar in retail advertising in 2025. A Nielsen study shows 62% of consumers now expect brands to be environmentally responsible, and 45% of shoppers are willing to pay more for products that are eco-friendly. As such, retail brands will shift towards highlighting their sustainability efforts in advertising campaigns.
From carbon-neutral packaging to sustainable sourcing and fair-trade practices, retailers will showcase their commitment to environmental and social responsibility. This trend will extend to advertising creatives, where visuals and messaging will focus on eco-conscious choices.
Example: In 2024, Patagonia’s ads focused on its commitment to environmental sustainability and its “Worn Wear” initiative, promoting the repair and reuse of old products. This type of messaging will continue to evolve as brands embrace sustainability.
3. Broader Advertising Trends in 2025: The Landscape of Advertising Will Change Drastically
a. The Rise of Immersive Advertising (AR & VR)
As augmented reality (AR) and virtual reality (VR) continue to improve, brands will leverage these technologies for more immersive advertising experiences. By 2025’s end, AR will be mainstream, enabling consumers to try on products, visualize them in real-world settings, and engage with ads in interactive ways. For example, consumers will be able to virtually try on clothes, makeup, or even see how furniture fits in their homes through a simple smartphone app.
Example: IKEA already uses AR in its IKEA Place app, letting customers place virtual furniture in their homes before buying it. By 2025, this type of interactive, immersive advertising will become a core part of how brands engage with consumers.
b. Privacy and Data Ethics
As privacy concerns continue to grow, advertisers will need to adapt to increasingly stringent data privacy regulations. In 2025, we expect the General Data Protection Regulation (GDPR) in Europe and California Consumer Privacy Act (CCPA) in the U.S. to serve as models for global data protection laws. With the end of third-party cookies and the introduction of privacy-first ad solutions, advertisers will rely more on contextual targeting and first-party data.
75% of consumers say they will stop engaging with brands if they feel their privacy is not being respected, according to Cisco’s 2024 Consumer Privacy Survey. As such, brands will need to prioritize transparent data practices and give consumers more control over how their data is used.
c. Gen Z & Gen Alpha: The Next Big Audiences
Gen Z and Gen Alpha will dominate the consumer market in 2025. These generations are digital natives who value authenticity, transparency, and inclusivity. Advertisers will need to craft purpose-driven marketing that aligns with their values. Additionally, platforms like TikTok, Snapchat, and Twitch will become even more important as these generations engage primarily with short-form video and interactive content.
According to PwC’s 2024 Voice of Consumer report, Gen Z already accounts for nearly 55% more spending than last year, and this number will continue to grow as more of the cohort enters the workforce. Retailers and advertisers who can capture this demographic with authentic, values-driven content will have a competitive edge.
Conclusion: The Future of Advertising is Dynamic, Data-Driven, and Purposeful
As we enter 2025, the advertising industry is becoming increasingly automated, immersive, and personalized. Agencies are leveraging AI and automation to optimize campaigns and integrate cross-channel strategies. Retailers are focusing on shoppable ads, hyper-personalization, and sustainability to meet consumer expectations. At the same time, the broader advertising landscape is seeing the rise of AR and VR, a focus on privacy, and a shift toward more ethical, purpose-driven marketing.
For brands and advertisers to succeed in 2025, they’ll need to stay agile, embrace new technologies, and keep a finger on the pulse of changing consumer behavior.