AI is set to drive major changes in media by 2025, with a shift toward what dentsu calls the ‘algorithmic era of media’, a report released by dentsu revealed. It further explains that the integration of AI in everyday experiences will enable brands to offer highly personalised, one-to-one interactions. AI will move beyond experimental stages, finding tangible applications in customer service and media planning. For instance, AI assistants like Klarna’s are expected to handle millions of customer interactions, improving service efficiency and boosting company profits. More than 51% of U.S. consumers believe AI’s positive effects will outweigh the negative, though concerns about distinguishing real from AI-generated content remain high, the report added.
The report further claims that 2025 is ‘The Year of Impact’. With technology playing a central role, the report examines ten key trends that will shape media consumption and advertising strategies in the coming year. Another key trend for 2025 is brands reinvesting in storytelling, particularly targeting niche interests and deep fan communities, according to the report. As AI continues to dominate, the report stresses that authentic storytelling will help brands break through algorithmic bubbles. Nearly 85% of CMOs plan to increase their investment in short-form content, influencer marketing, and livestream content. This trend highlights the power of niche communities, ranging from hyper-focused subreddits to platforms like TikTok and YouTube, as highly engaged consumers within these groups influence purchasing decisions on a large scale.
Programmatic advertising is expected to account for 75% of digital media buying globally by 2025. With this growth, there is increasing pressure to create a more transparent and accountable media supply chain. Brands are being urged to focus on responsible media investments that protect both their reputations and societal impact. New metrics, such as attentive seconds to measure audience engagement, are gaining traction among advertisers.
The CTV (connected TV) market is also expected to grow exponentially, with ad-supported streaming platforms gaining traction. As live sports and exclusive content deals become a major focus for streamers, brands will have more opportunities to reach specific audiences. Streaming giants like Amazon and Netflix are set to expand their advertising options, with Prime Video expected to generate 50 billion ad impressions by the end of 2024
Retail media, driven by first-party data from e-commerce platforms, will reshape how advertisers assess the impact of their campaigns, the report added. Retailers are increasingly becoming dominant players in the media landscape, with giants like Amazon leading the charge. Walmart and CVS are also ramping up their advertising offerings, marking a shift where retail and media will become even more intertwined.