Contextual advertising, AI to reshape ad landscape in 2025: Vishal Singh

In this interaction with Adgully, Vishal Singh, Country Head - India, Xapads Media, discusses the emerging trends that are expected to dominate the dynamic advertising landscape in 2025. He also speaks about how the advent of AI in 2025 will enrich the advertising landscape, alongside sectors like healthcare, finance, and e-commerce.

Looking at the dynamic advertising landscape the following ad trends will likely dominate in 2025:

Contextual Advertising: By 2025, spending on contextual advertising is expected to skyrocket to an impressive $295 billion. With rising concerns about privacy and the need for cookie alternatives, the trend has shifted to contextual advertising that focuses on connecting with audiences on an emotional level which is crucial for enhancing customer lifetime value (CLTV).
Unified CTV Platforms: In the coming years, brands will increasingly turn to unified CTV platforms to streamline their advertising efforts. These platforms allow advanced targeting and simplified campaign management, making smart, targeted ads more effective, making it essential for brands looking to build a strong brand presence.
Cross-Channel Integration: As competition in the ad landscape heats up, cross-channel advertising is gaining traction with advertisers looking forward to guiding potential customers down the funnel from awareness to conversion. Also, with a projected growth rate of 13.64% this year, more brands are embracing this strategy to connect with consumers at every opportunity possible.
Programmatic Advertising: Programmatic advertising is on the rise and is anticipated to reach a staggering $779 billion by 2028. It ensures the right ad placements at the right moments powered by A/B testing and automated processes that streamline execution. Moreover, it enables brands to adjust their campaigns on the fly with real-time insights and improve performance.

Gearing up for tighter regulations and evolving customer expectations

Contextual advertising is gaining traction in light of stringent cookie regulations owing to its cookie-less approach that allows advertisers to connect with the right consumer groups while respecting their privacy. By focusing on context, advertisers can tap into real-time sentiments and the content users are currently engaging with.

Additionally, double-filter analysis leveraging likes, dislikes, views and both user-generated and sponsored content ensures that ads are paired with the most suitable videos that align with the offering. This approach not only safeguards brand hygiene by avoiding inappropriate content but also enhances ad relevance, delivering a seamless advertising experience. It’s a highly effective strategy for precise targeting.

Role of AI, AR, VR in the advertising landscape

According to a NASSCOM report, AI is poised to contribute up to $500 billion to India’s GDP, making it a transformative force in 2025 and in the realm of digital advertising.

One major transformation would be advanced AI-driven targeting that allows advertisers to deliver ads that resonate with consumer groups in real-time. By tapping into metrics, including device type, context, content, location, and demographic, it ensures delivery of highly personalized ads, appealing directly to consumer interests at just the right moment.

Here, AI insights also play a major role by offering crucial information to advertisers based on behavioral history and real-time activities that help them create stories consumers connect with which further enhances campaign effectiveness and user experience.

Moreover, AI’s role in measurement and attribution models cannot be overstated. With advanced analytics, advertisers gain clearer insights into ad performance leading to more fine-tuned strategies for better returns on investment. This means that we’ll see more informed decision-making in campaigns, improving their overall effectiveness.

Another noteworthy benefit of AI will be in the realm of ad fraud detection. With AI-powered tools diligently monitoring for suspicious activities, advertisers can have peace of mind, knowing that potential fraud is being identified and addressed early on. This proactive approach helps safeguard investments and enhance confidence in ad spend.

All in all, the advent of AI in 2025 promises to enrich the advertising landscape alongside sectors like healthcare, finance, and e-commerce making it more effective, efficient, and secure. This way it is transforming not just how brands reach consumers, but also how they measure success in a rapidly evolving digital world.

Also Read: AI in Contextual Advertising: Delivering Ads Based on Real-Time Situational Awareness