Once again, advertising is set to operate against a backdrop of uncertainty this year. Amid ongoing price pressures and global political changes, there are increasing questions about whether inflation rates will soar or stick. Although economic expansion is still on the agenda, forecasters can’t seem to agree on how much UK GDP will rise, with the Bank of England, Bloomberg, and Goldman Sachs all placing different bets.
As expectations of industry fortunes remain cautiously hopeful, including an expected £40bn in total ad spend this year, one thing we can be sure of is the continued need to manage budgets wisely.
So, what are the key areas for marketers to watch this year?
Make data the cornerstone of effective marketing
As brands look to create more relevant and mutually valuable interactions in 2025, cutting through the noise will depend on data-driven precision.
We’re all aware of the critical resource first-party data has become, enabling marketers to craft tailored, omnichannel campaigns that build deep connections. Making greater use of customer data platforms (CDP) will allow them to wield first-party data more effectively. By combining insights from diverse sources to create profiles, they can deliver impactful, and consistent, messaging across touchpoints – from tailored product recommendations to bespoke loyalty offers – that enhances both individual-level loyalty and conversions.
Along with first-party data, embracing data partnerships can help achieve key marketing and business goals in an increasingly fragmented media landscape. Via strategic exchanges of second-party data, brands can identify areas of audience overlap that reveal new avenues to reach potential customers in a cost-efficient way and develop collaborative brand-synergy campaigns that provide revenue uplift for both parties.
Better data will also help solve stubborn post-cookie measurement challenges. A more “joined up” approach to data across various sources throughout the sales funnel can provide a clear view of how campaigns affect hard business outcomes, such as sales and in-store footfall, as well as where activity can be optimised. Techniques such as marketing mix modelling will play a crucial role in this process by quantifying the incremental impact of different media channels and offering a data-driven foundation for optimising media investment. This allows marketers to identify growth-driving channels and KPIs, and feed outcomes data back into planning tools to further refine future performance.
Equally important is earning trust. As privacy regulations tighten and consumer awareness grows, brands will prioritise transparency when it comes to how data is collected and used – particularly when this data is fed into AI engines. Open communication fosters confidence, encouraging consumers to share meaningful insights. By demonstrating value in return — through relevant content, exclusive offers, or seamless experiences — marketers can build relationships that not only drive engagement but also create a foundation for long-term loyalty and effectiveness.
Put a smarter spin on mass personalisation
As generative AI becomes a cornerstone of marketing – with 95% of CMOs already utilising it – forward-thinking marketers will take personalisation to the next level by blending predictive analytics with strategic planning. While tools that identify patterns across varied datasets and enable dynamic creative adjustment are invaluable, the real opportunity lies in embedding these capabilities within a broader framework of clear segmentation and purposeful execution.
First, advanced tools capable of identifying trends across diverse datasets can provide marketers with a blueprint for ad tailoring. But personalisation isn’t just about refining individual experiences — it’s also about ensuring that campaigns are tied to clear objectives, whether it’s driving acquisition, retention, or deeper loyalty. Pairing AI-produced insights with smart segmentation will help fuel real-time campaigns that align with consumers’ unique habits and preferences throughout their lifecycle, increasing the chances of ongoing engagement and achievement of core objectives, from product sales to interaction.
Second, marketers can leverage continuous analysis to anticipate shifts in demand, such as seasonal spikes, and adjust budgets accordingly. This ensures not only better returns but also reduces budget waste, allowing brands to maximise the value of every pound spent. Beyond seasonal planning, predictive analytics can also identify underserved audiences. In the UK, 19% of the population report feeling rarely or never well-represented in marketing — a gap that AI can help bridge by uncovering opportunities to connect with these often-overlooked segments.
Third, it will also be vital to ensure personalisation approaches also form part of thoughtful, purpose-driven strategies that champion diversity and demonstrate brand responsibility. This approach enables brands to deliver more impactful experiences, better returns, and inclusive marketing that builds stronger connections.
Balance emerging performance opportunities in CTV with brand
Finally, connected TV (CTV) – an area that’s already reached an elevated level of maturity marked not only by plateauing subscription rates, but by the rise of ad-supported models – is set to evolve even more this year. This is because, alongside extended programmatic options, wider availability of shoppable digital video formats and greater attribution accuracy means CTV is better positioned to drive fast and measurable results.
This evolution is good news for those planning to bolster CTV investment and performance marketing this year. But, as recent research illustrates, dialling down branding activity too much carries a risk of restricting long-term gains. As the industry moves towards a culture of peak effectiveness, it will be vital for marketers to maintain an equal focus on short-term hits while building brand awareness if they want to ensure sustained success via CTV this year. Or in other words: they must be careful to ensure a refined balance between top-funnel branding and efforts aimed to bolster performance.
It’s impossible to be sure what’s on the immediate or future horizon, although the signs point to a renewed focus on data-driven strategies and personalisation, as well as enhanced measurement and accountability across performance channels. Driving success is likely to mean leaning into these developments to deliver optimal outcomes for minimal outlay – driving efficiency and effectiveness.
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