Top trends that will impact Martech in 2025

Here’s a deep dive into the trends, traps, and triumphs that will shape the Martech landscape this year.

AI, AI, AI!

The rise of generative AI is one of the most significant trends that will define Martech in 2025. Over the past year, AI-driven tools have moved from a ‘nice-to-have’ experiment to a ‘must-have’ business necessity. According to a report by Criteo and Coresight Research, AI algorithms are expected to play an even more central role in retail media networks, enabling predictive analytics, real-time campaign adjustments, and improved ad spend efficiency. By 2025, AI will be responsible for optimising bidding strategies and shifting the focus from vanity metrics like impressions to measurable outcomes. In other words, AI will stop being the flashy new toy and become the engine that drives success. “Advancements in AI, automation, and data-driven personalisation will power the next wave of retail media growth,” Medhavi Singh, country head, Criteo India, told BrandWagon Online.

And it’s not just a future promise—by 2024, 77% of business leaders in marketing had already made plans to invest in generative AI, with 50% of those investments already yielding tangible results. Early adopters of generative AI have reported a four to six percent improvement in business outcomes. Looking ahead to 2025, projections indicate that broader implementation of generative AI could drive revenue increases of six to eight percent , as the technology continues to evolve and gain wider adoption across industries. “In today’s omnichannel landscape, multiple touchpoints create endless opportunities to engage consumers. Yet, Netcore’s latest survey, the State of MarTech 2024 shows a striking gap—while 80% of consumers desire personalisation, 70% feel they aren’t receiving it. To bridge this divide, brands must prioritise personalised, contextual, and actionable communication. Optimising outreach across channels will be essential to meeting consumer expectations and driving deeper connections,” Siddharth Gopalkrishnan, chief operating officer, Netcore Cloud, added.

However, there’s a catch: AI is not without its risks. As it becomes easier to automate and personalise marketing campaigns, there’s a growing danger of over-reliance on AI algorithms. Saurabh Khattar, country manager, Integral Ad Science, warns, “AI is powerful, but marketers need to strike a balance. AI tools can provide data-driven insights, but human oversight is still critical. Relying solely on AI can result in campaigns that lack nuance or fail to adapt to sudden shifts in consumer behaviour.” So, while AI can guide marketers, it cannot replace the human touch that adds creativity, context, and intuition to a campaign. 

Furthermore, AI is revolutionising marketing by enabling brands to deliver highly personalised experiences at scale. “With access to historical consumer data, brands can craft tailored messages, offers, and website experiences that resonate with individual preferences. What was once the domain of tech giants like Amazon and Netflix is now accessible to a broader range of businesses through affordable, plug-and-play SaaS platforms,” Ankur Gattani, chief growth officer, WebEngage, added. 

The role of CDPs

While AI is transforming how brands personalise their marketing, Customer Data Platforms (CDPs) are becoming the glue that holds it all together. As marketers gather vast amounts of data across touchpoints, CDPs help integrate this data into a unified view of the consumer, allowing brands to deliver hyper-targeted messages that feel personal and relevant. “Customer Data Platforms will play a key role in this AI-driven evolution, as they allow retailers to bolster their media network offerings by capturing consumer behavioural trends,” Singh said. The rise of CDPs will empower brands to better understand their audiences, not just in terms of purchase history but also by analysing real-time contextual data, she added. This means marketers will no longer just react to customer behaviours—they’ll anticipate them, personalising offers and recommendations before the consumer even knows they want them.

In 2025, stricter privacy regulations like GDPR and DPDP will remain in force, pushing CDPs to evolve and adapt. Marketers will need to ensure they’re complying with consent management practices while still delivering personalised experiences. This dual focus will not only help brands maintain consumer trust but will also ensure that they’re respecting the privacy rights of their audience. “While CDPs are primarily focused on managing first-party data, broader implications arise from regulations impacting second- and third-party data ecosystems. These implications are more pronounced in customer acquisition strategies, where marketers rely on external data sources, compared to retention efforts, which lean on existing customer data. As regulations evolve, CDPs are well-positioned to adapt and ensure compliance while continuing to deliver value through first-party data strategies,” Gattani said. 

SMBs are the new martech adopters

It seems like the adoption of Martech tools is no longer confined to large enterprises. Small and medium-sized businesses (SMBs) are increasingly jumping on the Martech bandwagon, and the reasons are clear. As Khattar points out, “Martech is now proving to be cost-effective and less risky. SMBs, which traditionally hesitated due to budget constraints, are now confident in investing in these tools to improve customer engagement and drive sales.” With the costs of Martech tools coming down and the benefits becoming more apparent, SMBs are embracing automation and AI to optimise customer acquisition, engagement, and retention. A significant 74% of marketers are expected to allocate more than 10% of their overall marketing budgets to Martech platforms in 2025, according to estimates. But this shift isn’t just about cost-effective tools—it’s also about levelling the playing field. “Instead of relying solely on traditional advertising like billboards or mainstream media, marketers can identify specific customer segments and engage them with personalised, data-driven campaigns with the help of martech. This approach not only improves marketing efficiency but also maximises the value of historical data. Importantly, this shift isn’t limited to large enterprises; even smaller, younger brands are now embracing these strategies to market more effectively, making data-driven marketing a mainstream practice across industries,” Gattani noted. 

Consolidation or fragmentation?

The Martech ecosystem is evolving in two significant directions: consolidation and composability. On one hand, there is a growing demand for integrated platforms that unify data and provide actionable insights across multiple channels. “Marketers are looking for platforms that unify data and provide actionable insights across multiple channels. It’s no longer sustainable to manage 20 different tools when one integrated platform can do the job,”  Amit Sanyal, EVP and COO – MarTech Solutions, Comviva, noted. 

On the other hand, the concept of composability is gaining traction as businesses seek flexibility and customisation. “Instead of relying on monolithic solutions like Adobe’s suite, which offer an all-in-one but rigid approach, companies are assembling best-of-breed tools from different providers. By integrating specialised systems—such as a CDP from one vendor, a campaign management tool from another, and an AI engine from a third—through open APIs, organisations create highly interoperable ecosystems tailored to their unique needs,” Gattani added. This composable approach ensures superior customer experiences without the limitations or vendor lock-in of a single solution.

The road ahead

As we move into 2025, the Martech landscape promises to be more dynamic, personalised, and AI-powered than ever before. Brands will have the tools to understand their customers in ways that were previously unimaginable, driving more relevant, timely, and profitable interactions. But with great power comes great responsibility. The successful marketers of tomorrow will not only harness the power of AI and data but will do so in a way that respects consumer privacy and maintains the human touch. As Singh concludes, “The shopping journey continues to evolve at a rapid pace, and in 2025, Martech will be pivotal in harnessing data, building trust, and driving measurable results.”

In other words, buckle up—2025 is going to be one heck of a ride.

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