As we look toward 2025, a groundbreaking report from Dentsu reveals that artificial intelligence (AI) will fundamentally transform the media landscape. This shift marks the beginning of what Dentsu refers to as the “algorithmic era of media,” where personalization and consumer engagement will take center stage.
The Rise of Personalization in Media
The Dentsu report highlights that AI will move beyond experimental phases, enabling brands to create highly personalized interactions with consumers. This capability is expected to revolutionize customer service and media planning. For example, AI assistants—such as Klarna’s—are anticipated to manage millions of customer interactions, leading to enhanced service efficiency and significant profit increases.
Interestingly, over 51% of U.S. consumers believe that the benefits of AI will outweigh its drawbacks, although concerns remain regarding the ability to distinguish between genuine and AI-generated content.
Key Trends for 2025: A Year of Impact
The report emphasizes that 2025 will be “The Year of Impact.” It outlines ten key trends that will shape media consumption and advertising strategies, focusing on the following critical areas:
- Reinvesting in Storytelling: Brands will increasingly prioritize authentic storytelling, particularly aimed at niche audiences and dedicated fan communities. As AI evolves, effective storytelling will be essential for breaking through algorithmic noise and connecting with consumers meaningfully.
- Short-Form and Influencer Content: Nearly 85% of Chief Marketing Officers (CMOs) plan to increase investments in short-form content, influencer marketing, and live streaming. This trend highlights the potential of niche communities—like specialized subreddits and platforms such as TikTok and YouTube—to significantly influence purchasing decisions.
- Growth of Programmatic Advertising: By 2025, programmatic advertising is projected to account for 75% of global digital media buying. This surge necessitates a push for greater transparency and accountability in the media supply chain, compelling brands to make responsible media investments that uphold their reputations and social responsibilities.
- Expansion of Connected TV (CTV): The CTV market is set for exponential growth, with ad-supported streaming platforms taking the lead. Live sports and exclusive content will provide brands with enhanced opportunities to engage targeted audiences. Companies like Amazon and Netflix are expected to expand their advertising capabilities significantly.
- Retail Media Transformation: Leveraging first-party data from e-commerce platforms, retail media will redefine how advertisers evaluate campaign effectiveness. Retail giants such as Amazon, Walmart, and CVS are increasingly becoming dominant forces in the media landscape, merging retail with advertising in unprecedented ways.
New Metrics and Engagement Strategies
As these trends unfold, new metrics—such as “attentive seconds” to gauge audience engagement—are gaining traction. This shift highlights the importance of understanding consumer attention spans in an era dominated by quick content consumption.