As we head into 2025, three key trends will shape the industry and highlight opportunities for innovation and purposeful growth in the year ahead, writes SBS's Jason Warner
As we look ahead to what the new year has in store, here are three trends I see playing out in 2025.
1. The mega-merger presents opportunities for independent agencies
December’s announcement of Omnicom’s acquisition of IPG shocked the industry. But in a slow-growth, small-margin market, pushing for efficiencies is critical. And with the merger creating the world’s largest holding company by revenue while bringing an eye-watering $750 million in savings (supposedly), this deal seems to make sense.
But integrating and consolidating businesses of this size is complex, disruptive, and time-consuming. In a people-orientated industry, the uncertainty this will create could affect staff confidence, which would have a knock-on effect on clients.
For independent agencies, there is an opportunity to highlight their strengths as agile and entrepreneurial partners who can provide tailored solutions, foster close collaborations, and deliver value through innovation and efficiency.
2025 could herald a significant growth period for independent shops that offer innovative approaches and clear, measurable outcomes. With brands craving the transparency that smaller independents bring, it will be fascinating to see how the dynamics play out between the agency behemoths and their smaller, leaner rivals.
2. Agencies must get their tech in order
With advertising budgets set to increase in 2025, this creates opportunities for agencies if they deliver what brands want. Part of this requires having the right technology in place.
Continuing pressures from data privacy regulations, the ongoing march towards cookie phase-out, and the growth in standalone AI tools mean, in 2025, companies must carefully consider their tech stack. Couple this with budgets shifting into new channels like connected TV, gaming and digital out-of-home, then supporting these requires more tools, which feed into growing intricacies.
Overstuffing your tech stack results in waste, complexity, inefficiencies and cost. Agencies must take a measured approach and gain control by auditing their stack to ensure each platform adds value, drives an outcome, and delivers transparency. If not, ditch them. This will help ensure processes are streamlined and optimised, and the business remains agile to take advantage of the opportunities.
3. Advertisers must embrace ethical shopping alongside ecommerce
In this industry, everything comes down to the consumer and their perceptions, behaviours and purchasing habits.
That’s why, in 2025, brands must work harder to ensure they align with shopper priorities. In particular, their narrative must shift to reflect purposeful and conscious buying as people adopt mindful consumerism.
Over Black Friday 2024 – that most sales-focused period of the year – we saw advertisers promote their initiatives, such as waste reduction approaches and ethical sourcing. And the growing concept of Thriftmas is changing buying. ‘Pre-loved’ is removing the negativity surrounding buying second-hand items and is now considered thoughtful, practical and mindful shopping – and it’s becoming big business.
Sustainability must be central to every brand’s vision, and this will be measured by actions, not words. It also goes beyond eco-friendly products and adopting more sustainable buying practices. It must embrace everything, including how a brand approaches its advertising planning and delivery.
This makes it critical to ensure every campaign is precisely targeted in 2025 to minimise unnecessary bid requests and wasted impressions and reduce CO2 emissions. Again, it’s another reason to streamline and optimise tech stacks so those tools that add little value but use excess energy are removed. Just as consumers are embracing more sustainable buying, brands must do the same when it comes to their advertising.
Posted on: Friday 3 January 2025
