Video ad market to grow at a robust CAGR of 9.78% through 2029: Edo Fernando

In conversation with Adgully, Edo Fernando, Country Head - Indonesia, Xapads Media, speaks about the trends that will dominate the 2025 ad tech landscape, how AI is revolutionizing ad strategies, growth of the video ad market, shift to context-driven targeting, and much more.

Looking ahead at 2025, what emerging trends do you believe will reshape digital marketing strategies, and how should businesses prepare for them?

Trends that will dominate the 2025 ad tech landscape include Video ad market dominance, AI-powered personalization and Advanced Analytical Integration.

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, 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.

With increasing focus on data privacy and consumer trust, how do you see marketers adapting to tighter regulations and evolving customer expectations?

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.

What role will technologies like AI, AR/VR, and voice search play in shaping the digital marketing landscape, and what industries are likely to benefit the most?

In 2025, AI is transforming advertising in several significant ways, including elevating campaigns’ overall quality and effectiveness. One of the most notable advancements is the ability to analyze consumer behavior 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.

The ongoing 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.

Lastly, sectors that are likely to benefit the most via AI are Healthcare, transportation, finance and e-commerce.

Also Read: Mobinet Media Unveils AI-Driven Video Ads with Dailymotion and Adspinnacle