As we step into 2025, the advertising landscape is undergoing profound shifts, influenced by technology, evolving consumer behaviours, and a strong focus on inclusivity and sustainability. In this first instalment of the A-Z of 2025 Cultural Insights series, we explore five key advertising trends that emerged in 2024 and will shape the industry moving forward.

Five Key Trends Defining Advertising in 2025

1. AI-Driven Advertising Becomes the Norm

Artificial Intelligence (AI) has transitioned from an experimental tool to an essential driver of advertising strategies. Leading firms like Publicis are investing heavily in AI to enhance targeted marketing. In 2025, Publicis is set to invest €100 million in AI through its CoreAI entity, leveraging data-driven insights for hyper-personalised and effective campaigns (Reuters, 2024).

AI-driven advertising is also reshaping the competitive landscape. Tech giants such as Amazon, Alphabet, Meta, Alibaba, and ByteDance now control over half of global ad spending, demonstrating the power of AI and data analytics in modern advertising. While some projections suggest this dominance will continue, further research from market analysts like eMarketer and WARC would provide a more detailed breakdown (Financial Times, 2024).

2. Inclusive Advertising Yields Higher Returns

Inclusivity is no longer just an ethical choice; it’s a proven business strategy. A study analysing 392 brands across 58 countries found that inclusive campaigns yield 3.5% higher short-term sales and 16% higher long-term sales compared to non-inclusive advertising. While TrendWatching reported these findings, further validation from Nielsen and WARC studies could help reinforce the long-term impact of inclusive advertising (TrendWatching, 2024).

3. Sustainability and Circularity Drive Brand Narratives

Sustainability is now a core pillar of advertising strategies. Consumers are increasingly demanding eco-conscious messaging, and brands are responding with circular economy principles. The trend, identified as “LOOPLIFE” by TrendWatching, highlights AI’s role in educating consumers on sustainable products and responsible consumption patterns. While this concept aligns with broader environmental strategies, corroborating insights from OECD and United Nations sustainability reports would provide a stronger empirical foundation (TrendWatching, 2024).

4. Consumer Trust Shifts Towards Authenticity

As skepticism towards traditional advertising grows, consumers are turning to platforms like Reddit and Substack for authentic, user-generated insights. While this shift is evident, further data on engagement levels and ad performance on these platforms compared to conventional digital advertising would strengthen the claim. Additionally, emerging reports from Pew Research and Forrester suggest that while decentralised platforms are growing in influence, traditional channels still hold substantial reach (Wall Street Journal, 2024).

5. Industry Consolidation Reshapes the Market

The advertising sector is undergoing significant consolidation. The planned merger of Omnicom and Interpublic Group aims to create the world’s largest advertising company, reflecting the industry’s shift toward integrating advanced technological tools and data-driven personalisation. However, the merger is still subject to regulatory approval, and analysts warn of potential antitrust concerns. Monitoring updates from regulatory bodies such as the Federal Trade Commission (FTC) and European Commission will provide clearer insights into the long-term impact of this consolidation (Wall Street Journal, 2024).

Key Takeaways for 2025

• AI is no longer an option but a necessity for precision advertising.
• Inclusivity leads to better ROI, making diverse representation a smart business move.
• Sustainability-driven advertising is shaping brand narratives and consumer choices.
• Consumer trust is shifting, requiring brands to embrace authenticity in their engagement strategies.
• Industry consolidation is accelerating, leading to more data-driven and tech-integrated ad models.

Looking Ahead

Advertising in 2025 is a dynamic blend of technology, inclusivity, and sustainability. As AI and data analytics take center stage, brands that prioritise authenticity, ethical marketing, and consumer trust will thrive in this evolving landscape.

Next week, we explore “B is for Behaviour,” examining how the past five years have entrenched new ways of thinking and acting that will guide the future.

Sources & Further Reading

• Publicis forecasts slower 2025, remains confident on outperformance
• Advertising revenues set to hit $1tn in market dominated by technology companies
• Sorry, Mad Men. The Ad Revolution Is Here.
• New research shows inclusive advertising boosts bottom-line sales
• 2025 Trend Report Highlights
• Nielsen Marketing Insights
• OECD Environmental Policy Reports
• Forrester Consumer Trends Analysis

Article by ChatGPT | Fact-Checked by ChatGPT
Further edited by Mahalia Tanner.