As we look ahead to 2025, marketing strategies are rapidly evolving to keep pace with technological advances and shifts in consumer behaviour. Here’s an overview of how marketing budgets are expected to change in the coming year.
1. First-Party Data Becomes Crucial; find ways to gather more first party data
With third-party cookies fading out, brands will prioritize first-party data collection:
- CRM and CDP Tools: Investments in advanced customer relationship management and data platforms will grow, enabling brands to manage and leverage first-party data more effectively for personalized marketing.
- Data Sharing Incentives: To gather more direct data from customers, expect brands to offer more rewards, discounts, gamification and personalized experiences – enabling them to build meaningful relationships with their customers.
Paul Roetzer – Founder and CEO of Marketing AI Institute states: “With the decline of third-party cookies, first-party data will become the most valuable asset for marketers, driving personalized and privacy-compliant strategies.”
TKM have also recently been working with QNTM, a group that includes Qualifio, who are experts in collecting actionable data through interactive and gamified experiences.
2. Digital Advertising Will Dominate; but be more targeted
Digital advertising will continue to be a major focus, but with a more targeted and efficient approach:
- Programmatic Ads: Expect companies to invest more in automated, AI-driven ad buying to ensure their messages reach the right audience efficiently.
- Social Media Advertising: Platforms like TikTok, Snapchat and Instagram will continue to attract larger portions of ad spend, thanks to their precise targeting options and large user bases.
- Video Content: As video remains popular, brands will allocate more resources to creating high-quality, engaging video ads, particularly for platforms like YouTube.
According to ‘Zeniths advertising expenditure forecasts’: “By 2025, it’s estimated that digital advertising will account for over 60% of global ad spend, with a significant portion driven by programmatic ads.”
3. Growth in Content Marketing; Immersive and AR seeing an uplift in spend
Content marketing will remain key, with a focus on personalization and more immersive content
- Interactive Content: More brands will use AR and VR to create engaging, interactive experiences, requiring higher investment in production and technology, or a shift on production techniques.
- Personalisation: Companies will increasingly use AI tools to create content that resonates personally with their audience, driving better engagement and creating ten times more assets to drive cultural relevance and personalised content
- Values-Based Content: With rising consumer interest in sustainability and social responsibility, expect brands to invest in content that aligns with these values, building stronger customer trust.
For more insight on the emergence and evolution of virtual production, watch out webinar on the Democratisation of Virtual Production, in conjunction with the World Federation of Advertisers.
4. Shift in Influencer Marketing; moving to a world of nano-influencers
Influencer marketing will continue to thrive but with a greater focus on authenticity:
- Micro and Nano-Influencers: Brands will increasingly partner with influencers who have smaller but highly engaged followings, focusing on more authentic and niche connections.
- Long-Term Collaborations: Companies will move toward building lasting relationships with influencers, leading to more genuine and ongoing brand promotion.
- Joint Content Creation: More budget will go towards working closely with influencers on creating content that feels authentic and aligns with the influencer’s style.
Neal Schaffer, the author of “The Age of Influence” highlights the reason as to why consumers are shifting towards influencers with smaller followings: “As consumers seek authenticity, brands are moving away from mega-influencers and investing in micro and nano-influencers, who offer more genuine connections with niche audiences.”
5. Rising Investment in AI and Automation; AI boosting efficiency
AI and automation will be key areas of growth, helping to boost marketing efficiency:
- AI Chatbots: Spending on AI-driven chatbots will increase as companies seek to offer personalized customer service and enhance overall customer experiences.
- Predictive Analytics: Brands will invest more in AI tools that predict consumer behaviour, allowing them to fine-tune marketing strategies in real-time and boost ROI.
6. Sustainability and Ethics in Marketing; more sustainable practices
Sustainability and ethical practices will be increasingly important, influencing where marketing dollars go:
- Eco-Friendly Campaigns: As consumers become more eco-conscious, brands will spend more on campaigns that showcase their commitment to sustainability and green practices.
- Transparent Advertising: There will be a stronger focus on honest, transparent advertising as brands strive to build trust with their audience.
7. Exploring New Tech; the move to metaverse marketing
Brands will also set aside part of their budgets for exploring emerging technologies:
- Metaverse Marketing: With the rise of the metaverse, some brands will begin experimenting with marketing in virtual spaces, creating new and immersive brand experiences.
- Blockchain in Ads: Although still in its infancy, blockchain technology offers potential for greater transparency in digital advertising, and some brands may start to explore its possibilities.
Conclusion
As 2025 approaches, marketing budgets will be heavily influenced by digital innovation, data-driven approaches, and a commitment to sustainability and ethical practices. Brands that stay ahead of these trends, adjust their strategies wisely, and remain flexible will be best positioned to succeed in this ever-changing landscape.
If you’d like to produce some bespoke, unique content on any of the subjects above, to drive awareness and lead generation, we’d be happy to chat through options.
Please get in touch with us at hello@tkm-consultants.com