What Is Programmatic Advertising in 2025 and How to Leverage AI?”
Programmatic advertising is taking the spotlight, projected to account for 91.5% of all display ad spending in 2024
(LinkedIn Marketing Blog).
By using AI to automate ad buying and placements in real-time, marketers can reach the right audience with hyper-personalized messages at the perfect moment.
Marketing Hack
Use AI-powered tools like Google DV360 or The Trade Desk to analyze user behavior, bidding trends, and real-time performance. Automate A/B testing to identify high-converting creatives in hours, not weeks.
Case Study
An eCommerce brand used AI-powered programmatic platforms to retarget visitors who abandoned carts—resulting in a 30% increase in ROAS within three months.
Learn how our PPC Services at Silver Ant Marketing can help you scale your campaigns effortlessly.
Top Advertising Trends to Watch in 2025
Digital advertising is rapidly changing, and understanding where the money is being spent is crucial for marketers. Here’s an overview of projected advertising spend by channel in 2025:
| Advertising Channel | 2024 Ad Spend ($B) | 2025 Projected Growth (%) |
|---|---|---|
| Programmatic Advertising | 185.6 | 9% |
| Video Advertising | 110.4 | 12% |
| Mobile Advertising | 83.1 | 8% |
| Social Media Advertising | 118.2 | 14% |
| Display Advertising | 56.3 | 5% |
Source: eMarketer, 2024
These trends show that mobile and social media advertising will continue dominating in 2025, while programmatic advertising will grow significantly.
Programmatic Advertising
Programmatic advertising has become increasingly popular among marketers due to concerns about a downturn. According to eMarketer’s analysis, programmatic ad spending accounts for more than 90% of all display advertising spending and is projected to reach 91.5% by 2024. This growth can be attributed to the flexibility in spending, low upfront costs, and the utilization of third-party cookies. However, the future dominance of programmatic display advertising may be hindered by the depreciation of third-party cookies, as their usefulness could be compromised.
Marketing Insight: With programmatic advertising, businesses can achieve more precise targeting, optimize their budgets, and see higher ROI by automating the ad placement process. But, as third-party cookies phase out, businesses must shift towards first-party data and contextual advertising.
Display Advertising
Based on eMarketer’s 2023 Display Advertising Forecast, it was projected that display ad spending in the US would grow by 15.7% in 2023, reaching a total of $163.29 billion. As with areas of marketing, display advertising changes, and its popularity increases. This year is no different as advancements in AI technology, ongoing economic uncertainty, and the rising expectations of tech consumers continue to shape consumers’ preferences for marketing strategies. By understanding the prevailing trends in display advertising, marketers can better utilize display ads to achieve their goals.
| Display Ad Format | Effectiveness (%) | Average CTR |
|---|---|---|
| Banner Ads | 65% | 0.05% |
| Video Ads | 78% | 0.1% |
| Interactive Ads | 85% | 0.12% |
Pro Tip: LinkedIn is expected to capture around 50% of all digital display ad spend. B2B marketers should take note of this shift. If you’re interested in leveraging LinkedIn for B2B display advertising, check out our social media marketing services.
Key Benefits of Display Advertising:
- ✅ Higher Reach: Display ads allow your brand to reach a broader audience.
- ✅ Visual Impact: Effective for showcasing products and services in a visually engaging way.
- ✅ Brand Awareness: A proven method for increasing visibility and brand recall.
Case Study: Boosting ROI with Programmatic Display Ads
Electronics Brand
Goal: Increase brand visibility and drive online sales through programmatic advertising.
Strategy
Used AI-driven targeting and first-party data for optimized ad placements, leveraging banner and video ads across multiple platforms.
Results
30% increase in CTR, 45% improvement in ROI, and a 20% boost in online sales during the first quarter.
Video Advertising Trends
Today’s consumers have a low tolerance for lengthy video ads – over 25% of adults admitted they would stop watching a video within the first 10 seconds. More than half say they would stop within 20 seconds. As a result, advertisers turn to bite-sized video ads, especially if there’s a sequence of ads back to back. An analysis found that Instagram videos should not exceed 30 seconds, Twitter videos should be limited to 45 seconds, and Meta (previously Facebook) videos should be no longer than 1 minute. Short-form video content has been found to yield the highest return on investment (ROI) throughout 2023. A Hubspot study shows that short-form video is the preferred format for product discovery among Gen Z (57%) and Millennials (42%).
Outstream ads involve integrating videos within the content users read. These videos autoplay silently when scrolled over and pause when out of view. According to statistics, out-stream ads have shown higher click-through rates (CTR) and longer engagement rates than in-stream video advertising. Research shows that 80% of consumers are more likely to finish watching a video when captions are available (Source: Verizon Media). In Amazon’s September 2023 video ad, a man shares his experience working for the company. Captions were used to enhance the storytelling in this dialogue-focused ad.
Short-Form Video Strategy:
- ✅ Less is More: Keep video ads under 30 seconds to capture attention.
- ✅ Autoplay Options: Implement outstream video ads for higher engagement.
- ✅ Captions: Always include captions to increase completion rates.
Mobile Advertising Trends
One undeniable thing is the permanence of devices. With the majority of internet users accessing the web through their smartphones, businesses cannot overlook the impact of advertising. Here’s why: Many brands continue to prioritize optimization. The number of consumers using their devices, including tablets, accounts for over half of all internet traffic each year. Businesses are constantly searching for ways to reach an audience. While Millennials are the consumer group and Baby Boomers possess purchasing power, it’s important not to underestimate the spending power of Generation Z as it continues to grow.
According to a report from Bloomberg, both younger generations and working professionals have an income totaling $360 billion. As this amount increases, businesses must prioritize creating experiences optimized for devices in order to effectively market to this fast-paced and highly connected demographic.
Advertisers are capitalizing on the surge in popularity of gaming. The global in-game advertising market is projected to generate $13,989.6 million in revenue by 2028 with a compound growth rate (CAGR) of 11.2% during the forecast period from 2021 to 2028. Major companies like Unilever, Coca-Cola, and Ford have already made investments in in-game advertisements.
| Mobile Advertising Format | Effectiveness (%) | Average Engagement Rate |
|---|---|---|
| In-Game Ads | 85% | 0.13% |
| In-App Ads | 76% | 0.07% |
| Video Ads | 80% | 0.1% |
Top Mobile Advertising Formats:
- 🎯 In-Game Ads: Reach gamers through immersive in-game advertisements.
- 🎯 Interactive Ads: Engage users with interactive and dynamic mobile ad formats.
- 🎯 App-Based Ads: Drive conversions by targeting users through apps.
Social Media Advertising Trends
Social media advertising trends provide businesses with an opportunity to engage with customers in a personal manner. Over the years, several trends have had an impact on social media advertising. It has been observed that 88% of consumers prioritize media when deciding which brands to support. To make their brands more relatable, advertisers are increasingly turning to influencer marketing.
An example of the utilization of influencer marketing is seen in Lenox, a dinnerware company. They collaborated with 32 influencers who creatively showcased Lenox’s dishes in home settings. This campaign generated 900 link clicks, surpassing the estimated reach by almost 400%. The global size of influencer marketing has more than doubled since 2019. It is projected to reach around $21.1 billion by 2023, according to data from Grand View Research. Furthermore, research suggests that there will be an increase in the preference for influencers over traditional celebrities for product endorsements resulting in a Compound Annual Growth Rate (CAGR) growth of 33% from 2023 to 2030.
| Influencer Marketing Strategy | Engagement (%) | Cost per Engagement ($) |
|---|---|---|
| Micro-Influencers | 5.6% | $1.45 |
| Macro-Influencers | 3.8% | $2.50 |
| Celebrity Influencers | 2.5% | $5.00 |
Key Social Media Advertising Tips:
- 🎯 Partner with Influencers: Leverage influencers for brand authenticity and higher engagement.
- 🎯 Use Video Content: Videos dominate social media engagement, so include them in your strategy.
- 🎯 Target the Right Audience: Utilize audience segmentation tools to increase the impact of your ads.
FAQs
According to Statista’s Market Insights, the global digital advertising market is projected to reach $1.09 trillion in 2025, reflecting a 7.3% increase from 2024 levels. Source
Programmatic advertising is on track to surpass $200 billion in spending by 2026, driven by advancements in AI and automation. Source
Over half of companies are increasing their video marketing budgets in 2025, with only 5% cutting their video budgets. Source
Mobile advertising expenditure in the U.S. is expected to exceed $216 billion in 2025, highlighting its dominance in the advertising landscape. Source
Final Thoughts: Embrace the Future of Advertising
As the advertising landscape evolves, businesses must adapt to emerging trends and consumer preferences to maintain relevance and effectiveness. By incorporating creative hacks across programmatic advertising, display advertising, mobile advertising, video advertising, and social media advertising, brands can not only keep pace with industry shifts but also stand out in a crowded digital space. As we navigate the intricate web of advertising in 2025, innovation and creativity will remain the driving forces behind successful campaigns, ensuring brands connect with their target audiences in meaningful and impactful ways.
Are you ready to take your advertising strategy to the next level in 2025? Contact us today to discover how our expert team can help you stay ahead of the curve and achieve your marketing goals!