Navigating the ad tech landscape in 2025: What marketers need to look out for

In the world of digital marketing, 2024 emerged as a year of transformative shifts and ground-breaking strategies. From leveraging the power of generative AI to crafting personalized customer experiences at scale, brands are redefining how they connect with their audiences. In 2025, the digital landscape will capitalize on cutting-edge technologies like augmented reality and voice search while prioritizing values like data privacy.

With consumer expectations reaching new heights, marketers are exploring innovative approaches – embracing shoppable content, influencer collaborations, and immersive storytelling – to stay ahead of the curve. As the boundaries between digital and physical experiences blur, the focus remains on creating authentic, impactful engagements that drive results.

Let’s explore the emerging trends that will reshape digital marketing strategies in 2025, and how should businesses prepare for them.

According to Edo Fernando, Country Head for Indonesia at Xapads Media, the ad tech landscape in 2025 will be shaped by several key trends, including the dominance of the video ad market, the rise of AI-powered personalization, and the integration of advanced analytics.

Fernando predicts that video ads will continue to reign supreme, with the market projected to grow at a robust CAGR of 9.78% through 2029, solidifying its impact on the ad tech ecosystem. Moreover, he adds, AI is revolutionizing ad strategies with highly effective and efficient campaigns that draw desired brand outcomes. In Indonesia, the AI market is surging with an impressive annual growth rate of 28.65%, transforming how brands connect with audiences.

“Enhanced tools for tracking conversions, lifetime value, and cross-channel loyalty programs are driving smarter, insight-driven campaigns. The future of advertising lies in deeper analytics for sharper targeting and expanded reach. With the rapid rise of CTV platforms at 10.56%, brands must adopt unified solutions for seamless ad management across channels for streamlined operations and maximized reach. Brands should forge strategic partnerships in AI-powered advertising and invest in tailored AI-driven solutions designed for niche campaign needs,” he says.

As businesses gear up for the year ahead, several key trends are set to redefine digital marketing strategies, says Raj Swaminathan, Senior Director- New Initiatives and Revenues, Globale Media. Preparing for these developments will be crucial for staying competitive and driving growth, he adds.

According to Swaminathan, the major trends to watch out for are:

AI-Powered Personalization: AI will play a pivotal role in affiliate marketing, enabling businesses to deliver personalized content, use predictive analytics to anticipate consumer behaviour, and optimize campaigns for better results. This approach ensures that consumers are targeted with the most compelling messages, maximizing call-to-action effectiveness.
Short Video Format Domination: Short, engaging, and shareable video content will continue to dominate. With 72% of people preferring video to learn about products (as per marketing statistics published by Wyzowl) and 88% making purchases after watching a video (Wyzowl), storytelling with humour and creativity will be a game-changer.

Evolving Channels and New Trends

Influencer Marketing as a Performance Channel: Influencer marketing is transitioning from pure branding to performance-driven strategies. Mid- and lower-tier influencers, growing rapidly in reach and quality, will focus on delivering measurable results through affiliate links integrated into their content. Collaborating with nano- and micro-influencers will enhance engagement and drive conversions.
Telegram Mini-Apps: Telegram is revolutionizing user engagement with “Mini Apps”. These in-app websites provide immersive experiences, enabling payments, Web3 integrations, and interactivity within the Telegram platform. This evolution positions Telegram as a hub for communication, entertainment, and commerce.
Social Commerce Personalization: Social commerce will expand further as brands transform ads into storefronts on platforms like Facebook, Instagram, and YouTube. Features like TikTok Shop and Instagram’s in-app checkout simplify the shopping journey, allowing consumers to discover and purchase products seamlessly without leaving the platform.

To stay ahead, Swaminathan adds, businesses should invest in AI-driven tools, develop creative short-form video content, and adapt to the evolving influencer landscape by focusing on performance-based collaborations. Additionally, leveraging emerging platforms like Telegram Mini-Apps and enhancing social commerce strategies will help brands capture new opportunities and drive growth in 2025, he says.

Data privacy & consumer trust

With increasing focus on data privacy and consumer trust, marketers need to adapt to tighter regulations and evolving customer expectations.

Raj Swaminathan reckons that the increasing focus on data privacy and consumer trust is reshaping how marketers approach their strategies. With stricter regulations like GDPR and CCPA, coupled with rising consumer demand for transparency, businesses are prioritizing trust and compliance.

According to him, marketers are transitioning to first-party and zero-party data, collecting information directly from customers through owned platforms, interactive tools, and preference centers. This shift, he adds, reduces reliance on third-party cookies while maintaining the ability to deliver personalized experiences.

“Transparency is also becoming a cornerstone, with simplified privacy policies, clear opt-in mechanisms, and tools like privacy dashboards empowering consumers to manage their data preferences. Consumers are becoming more aware of ethical practices and maintainability. Brands that prioritize transparency and sustainability can expect to see increased customer loyalty and trust. By fostering open communication about privacy practices, businesses are strengthening trust and customer loyalty,” says Swaminathan.

To meet these evolving expectations, he adds, marketers are adopting innovative yet privacy-compliant solutions. “Contextual targeting and AI-powered anonymized data analysis are helping deliver personalization without infringing on privacy. At the same time, investments in secure data infrastructure, robust compliance programs, and partnerships with privacy-focused technology providers are ensuring adherence to regulations. Ethical marketing is gaining prominence, focusing on respecting customer boundaries and aligning with consumer values like sustainability and inclusivity. Ultimately, brands that view data privacy as an opportunity rather than a challenge will build stronger relationships and achieve sustainable growth in an increasingly privacy-conscious world,” Swamithan explains.

Edo Fernando agrees that marketers are responding to stricter regulations and shifting consumer expectations by embracing context-driven targeting, with ad spending projected to reach $295 billion in 2025 and nearly double by 2030. “Contextual advertising aligns ads based on relevant content, context, and sentiments which builds deeper connections with consumers. Additionally, double-filter analysis ensures brand safety by avoiding inappropriate ad associations and upholding brand hygiene,” says Fernando.

Influence of new-tech

Experts point out that in 2025, technologies like AI, AR/VR, and voice search will play a significant role in shaping the digital marketing landscape.

In 2025, says Edo Fernando, AI will be transforming advertising in several significant ways, including elevating campaigns’ overall quality and effectiveness.

“One of the most notable advancements is the ability to analyse consumer behaviour which helps with improved decision-making and create highly targeted content that resonates with specific audiences. Personalization is another key area where AI is driving significant impact. It enables real-time tailoring of advertisements based on individual user behaviour, location, and demographics, enhancing the overall user experience through this advanced level of customization,” he says.

According to Fernando, the on-going improvements in predictive analytics empower advertisers to anticipate market trends and consumer needs, leading to improved campaign planning. “Overall, the integration of AI in advertising not only enhances quality but also fosters deeper relationships between brands and consumers, paving the way for more effective and meaningful marketing strategies.”

Technologies like AI, AR/VR, and voice search are revolutionizing the digital marketing landscape by enhancing personalization, interactivity, and accessibility, points out Raj Swaminathan. He adds that AI enables marketers to analyse vast amounts of data, predict consumer behaviour, and deliver hyper-personalized experiences at scale. It streamlines processes like content creation, customer segmentation, and campaign optimization, making marketing efforts more efficient and effective.

“AR/VR takes engagement to the next level, allowing brands to create immersive experiences that captivate audiences. Whether it's virtual try-ons for fashion or interactive product demos for tech gadgets or virtual shopping, these technologies bridge the gap between physical and digital, providing consumers with tangible value. Voice search, on the other hand, emphasizes conversational marketing and hands-free convenience, reshaping SEO strategies to cater to natural language queries and enhancing accessibility for a wider audience,” he says.

And what industries are likely to benefit the most?

According to Swaminathan, industries that rely on customer experience and engagement are poised to benefit the most from these technologies. Retail and e-commerce will leverage AR/VR for virtual shopping experiences, while AI will drive personalized recommendations. The real estate and automotive industries can use AR/VR for virtual tours and test drives, reducing reliance on physical visits.

Healthcare will benefit from AI-powered diagnostics and patient engagement tools, while the travel and hospitality sector can utilize immersive virtual experiences to inspire bookings. Additionally, voice search is particularly transformative for local businesses, as it enhances discoverability and simplifies the customer journey.

As these technologies become more integrated, industries across the board will unlock new opportunities to connect with their audiences in meaningful and innovative ways.

Fernando also says that sectors that are likely to benefit the most via AI are healthcare, transportation, finance and e-commerce.

Also Read: Navigating the Future of AI-Driven Content: Balancing Innovation and Integrity in Marketing