AI technology enables highly personalized ad delivery, enhancing the consumer experience while minimizing unnecessary waste and exposure for advertisers. Additionally, AI greatly benefits ad management and optimization by automating performance monitoring, real-time strategy adjustments, and streamlining operations to save time and effort. As competition in the advertising market intensifies, traditional marketing and ad strategies may no longer suffice. Leveraging AI assistance will be a key advantage for the future.
Top 10 Digital Advertising Trends for 2025
The digital advertising landscape is set for unprecedented transformation in 2025. According to The Wall Street Journal, the global advertising market is expected to surpass $1 trillion, driven by three key factors: economic growth expanding the middle-class consumer base, rapid advancements in digital tools, and the evolution of AI services.
Technological developments and shifting consumer behavior will shape a more diverse digital advertising ecosystem. Retail media networks (RMN) will flourish, leveraging first-party data to align ads closely with consumer journeys for superior conversion rates. Simultaneously, breakthroughs in AI will revolutionize content creation and search behavior, establishing dynamic, personalized ad formats as the new standard.
Here, we delve into the top 10 trends that will help brands stand out in 2025’s rapidly changing digital advertising landscape.
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1. Retail Media: The Next Wave of Growth
Retail Media Networks (RMNs) are retailer-specific advertising platforms that leverage first-party consumer data to deliver highly targeted advertising. These platforms integrate online storefront placements, offline store advertising, and programmatic ad buys both on and off their sites. RMNs offer brands and advertisers a unique advantage: precision targeting and high conversion rates. Moreover, because these ads are closely tied to the point of sale and consumer journey, measuring performance and attribution becomes more straightforward. According to research from Boston Consulting Group (BCG), the U.S. has already entered the RMN 3.0 phase, signifying a mature stage of development.
The Rise of Industry-Specific Retail Media in Taiwan
Taiwan’s Retail Media market is set to experience significant growth in 2025, as more providers, integrators, and retailers venture into this space. These developments will bring a wider range of products and services to market, giving brands and advertisers more opportunities to allocate budgets strategically.
As more players enter the Retail Media Network (RMN) arena, competition is driving innovation and technological advancements across platforms. This benefits advertisers by improving ad effectiveness and audience targeting precision. Ultimately, brands and advertisers stand to gain the most from these improvements.
Changing Dynamics of Media Procurement
While Taiwan lacks large-scale RMNs like Amazon or Walmart, local RMNs have instead focused on niche industries or specific use cases. For example, some RMNs cater exclusively to retail, while others target verticals like mother-and-baby products. This allows advertisers to select RMNs that align closely with their marketing objectives, creating a more diverse and tailored RMN ecosystem in Taiwan.
As brands and advertisers increase their media budget allocations for RMNs, they will begin to see clear distinctions between RMNs and other major media platforms like Google and Meta. For instance, RMNs derive their data from retail sales, membership activities, and other high-intent consumer behaviors, providing superior attribution capabilities for measuring ad performance and conversions. These unique attributes enable advertisers to allocate their media budgets more strategically.
Amid rising competition and escalating media costs on platforms like Google and Meta, RMNs provide a new avenue for brands to reach additional customer segments. By employing full-funnel marketing strategies, RMNs support brands throughout every stage of the customer journey—from awareness to conversion. This comprehensive consumer engagement approach positions RMNs as an emerging force in digital marketing.
Globally, major players in the retail media space include Amazon, Alibaba, Walmart, and Rakuten. These platforms offer robust user data and shopping behavior insights to deliver highly personalized ad services. In addition, many mid-sized e-commerce platforms like Shopify, Etsy, and Pinduoduo are establishing their own RMNs. These smaller networks often collaborate with third-party ad tech companies to manage and optimize ad placements effectively.
3. The Expanding Impact of Short-Form Video Advertising
Short-form video content has become a critical component of today’s digital landscape, thriving on platforms like Instagram Reels, YouTube Shorts, and TikTok. Its growing prominence is steadily replacing traditional long-form video formats. The primary advantage of short-form video advertising lies in its ability to cater to modern consumers’ shrinking attention spans, delivering brand messages in mere seconds. This format effectively captures the attention of mobile-centric audiences who engage with social media daily, making it a powerful medium for advertising.
According to Statista, digital video advertising is expected to generate $191.4 billion globally in 2024, accounting for over 56% of television and video ad spend. Consumer behavior reflects this trend, with 73% of consumers relying on short videos to discover new products or services. Moreover, 57% of Gen Z users prefer short-form videos for product research, highlighting the format’s effectiveness in engaging younger audiences.
In Taiwan, DMA’s 2023 advertising market report identified video ads as the fastest-growing format, with an 8.5% increase. Combined with over NT$23 billion spent on social media (out of a total advertising market of NT$61 billion), video ads continue to drive the growth of Taiwan’s digital advertising sector.
How Short Should Short-Form Ads Be?
What is the ideal length for a short-form video ad? According to a study by Meta, Champs Sports, a U.S.-based sportswear retailer, tested 30-second and 6-second video ads. The results revealed that the 6-second version outperformed the 30-second one with an 11% higher retention rate, a 12% improvement in ad effectiveness, and a 271% increase in completion rates.
These findings demonstrate that today’s consumers respond better to concise ads that deliver messages quickly. For advertisers, the challenge lies in communicating effectively within just 6 seconds, which requires refined content and exceptional editing techniques.
How Short-Form Videos Can Help Brands Grow
For B2C Brands
- User-Generated Content (UGC): Organize campaigns encouraging consumers or fans to create content using your products. This not only maintains authenticity but also promotes your brand through creative expressions or customer experiences.
- Leverage Video App Features: Beyond creating short-form content, utilize built-in features of video apps, such as TikTok’s Duets or Instagram’s interactive stickers, to enhance engagement.
- Participate in Trends: Join trending challenges or themes relevant to your brand to increase visibility and connect with a broader audience by tapping into current popular topics.
For B2B Brands
- Educational Content: Create concise tutorials, industry insights, or product demos to establish thought leadership and provide value to your audience.
- Showcase Company Culture: Use behind-the-scenes clips or employee interviews to humanize your brand and build trust with potential clients.
- Customer Testimonials: Invite customers to share their experiences with your products or services through short videos, amplifying trust and credibility via social media platforms like Facebook and LinkedIn.
Integrating Short-Form Videos into Your 2025 Marketing Strategy
To effectively incorporate short-form videos into your 2025 strategy, follow these steps:
- Align with Marketing Goals: Ensure your short-form content aligns with your broader marketing objectives, whether it’s boosting brand awareness, generating leads, or fostering customer retention.
- Maintain Cross-Platform Consistency: Keep a consistent brand voice and message across all platforms while tailoring content to suit the unique audiences and features of each platform.
- Optimize Through Data: Regularly analyze key metrics such as engagement rates, shares, and conversions to refine your content strategy and maximize ROI.
By understanding the current landscape, implementing targeted strategies, and thoughtfully integrating short-form videos into your marketing plans, brands can effectively captivate audiences and remain competitive in the ever-evolving digital market of 2025.
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4. Social Commerce on the Rise
Social Commerce
Social Commerce refers to the buying and selling of goods or services directly within social media platforms. This model goes beyond traditional discovery functions, allowing users to complete the entire shopping process—from browsing to checkout—without leaving the app. Major platforms like Facebook, Instagram, Pinterest, and TikTok offer dedicated social commerce tools, enabling retailers or independent sellers to set up digital storefronts within the platforms. This seamless experience allows consumers to easily discover and purchase products without navigating to external websites.
Photo credit: Accenture report
5 Key Advantages of Social Commerce
- Broader Audience Reach:
Social media users continue to grow, and social commerce helps products reach a larger pool of potential customers. - Reduced Shopping Barriers:
Consumers can purchase directly within the platform, shortening the buying process and increasing conversion rates. - Enhanced Brand Trust:
By leveraging familiar social media environments and user-generated recommendations, brands can boost their reputation and foster trust. Positive reviews and word-of-mouth amplify participation and sales. - Valuable Data Collection:
Social commerce provides direct access to customer data, enabling brands to refine marketing strategies more effectively. - Increased Sales and Revenue:
Social commerce opens new revenue streams for e-commerce, with U.S. retail social commerce sales expected to surpass $100 billion by 2025.
Conversational commerce can significantly boost a brand’s interaction with customers by providing quick, targeted services and guiding users to take the next step with ease. This high level of immediacy and interactivity ensures a smoother sales funnel.
According to Harvard Business Review, brands or e-commerce platforms that respond to customer inquiries within one hour are 7 times more likely to close a sale than those with slower response times. Initially, chatbots relied on pre-designed FAQ directories to provide automated responses for tasks like checking inventory or offering after-sales guidance. While useful for basic customer support, this model was limited in scope.
As AI technology evolves, chatbots are becoming essential tools for conversion optimization. By integrating first-party customer data, brands can continuously label and categorize visitor behavior. This enables intuitive and personalized interactions when customers have needs, such as joining memberships, subscribing to newsletters, or making additional purchases.
Today, many brands leverage conversational commerce to integrate interactivity, service, and data analysis, which collectively enhance conversion rates. However, unlike traditional digital advertising focused on simple impressions or clicks, conversational commerce requires a comprehensive service ecosystem. This includes a robust platform, effective customer data management, a seamless user experience, and well-designed service content. Without these elements, even the most advanced chatbots may fall short if their responses fail to address customer needs effectively.
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5. The Rise of Voice Search
Voice search is rapidly transforming how consumers seek information, interact with technology, and make purchasing decisions. With the growing adoption of voice-enabled devices such as smart speakers and virtual assistants, digital marketing is shifting toward more conversational and hands-free interaction models. Businesses must adapt their SEO and content strategies to meet the rising demands of voice search users.
Voice search is not just a passing trend but a fundamental shift in how people access information. Recent statistics show that a significant number of searches are now conducted via voice, driven by its convenience and efficiency—especially on mobile devices and home smart speakers.
The rise of voice search has altered the way users frame queries, moving from short keyword searches to more natural, conversational language. For marketers, this means rethinking traditional SEO strategies to accommodate the nuances of voice-initiated queries.
With advancements in voice recognition accuracy and AI technology, voice search has become more reliable and widely adopted. As this technology evolves, it will play an increasingly important role in the customer journey, from initial discovery to final purchase.
Voice Search and Content Strategy: Creating Conversational Content
The proliferation of voice search demands content that mirrors natural speech patterns. This involves moving away from keyword-stuffed content and focusing on writing conversational narratives that meet specific user needs.
Key Content Strategies for Voice Search Optimization
- Answer Audience Questions: Voice queries often begin with “who,” “what,” “when,” “where,” “why,” or “how.” Businesses should create content like FAQs, blog posts, or dedicated pages that directly address these questions, positioning themselves as go-to resources for voice search users.
- Write Engaging Conversational Copy: Content should adopt a conversational tone that mimics natural speech. This not only optimizes content for voice search but also makes it more approachable and engaging for users. Avoid overly technical language or jargon, prioritizing clear and simple explanations.
- Focus on Mobile-Friendly Content: Since most voice searches occur on mobile devices, it’s critical to ensure content is optimized for mobile viewing. Use short paragraphs, bullet points, and headers to make text easy to skim, and ensure multimedia elements are mobile-compatible.
- Leverage Conversational AI for Content Creation: Advances in AI and natural language processing make it easier to generate content tailored to voice search patterns. Conversational AI tools can help businesses create content that not only aligns with voice search trends but also performs well in search engine rankings. These tools can analyze voice search trends and recommend potential topics and keywords for optimization.
The Growing Importance of Voice Search in Digital Marketing
By 2025 and beyond, voice search is expected to significantly influence marketing strategies, acting as a driving force for change. Integrating voice search with AI, machine learning, and IoT will deliver a more personalized and user-centric search experience.
As technology matures, businesses will need to prioritize multi-language optimization to reach global audiences. Content must be localized to align with cultural norms and language habits in different regions.
Additionally, voice search will play an increasingly prominent role in e-commerce. As more consumers use voice commands to search for products, businesses will need to predict user needs and provide highly relevant, personalized results in real-time to align with evolving consumer preferences.
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6. The Popularity of Omnichannel Marketing and Programmatic Buying
Programmatic advertising refers to the use of computer programs to deliver the right ads to the right target audience. This trend has emerged as a solution to the challenges faced by modern marketing teams, including the diversity of ad formats, the proliferation of media platforms, and the complexity of repetitive processes. Unlike traditional ad buying, where brands could only purchase ad space on specific websites, programmatic buying offers more flexibility in matching target audiences (TAs) with precise segments.
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In Western markets, the scope of programmatic ad buying extends beyond online media to include streaming TV, digital out-of-home (DOOH) advertising, in-store TV, podcast programs, and more. This creates a broader and more complex range of channels for advertisers to choose from. According to eMarketer, global programmatic ad spending will reach $146 billion in 2024, accounting for 45.3% of total digital ad expenditures.
Several factors will drive the future growth of programmatic ad buying:
- AI and Machine Learning: These technologies will enable more comprehensive precision targeting and personalized ads, delivering better ROI.
- Mobile Devices and Short-Form Videos: These platforms and formats will continue to provide advertisers with more options.
- Data Privacy and Security: As transparency and data protection become increasingly important, programmatic buying will align with new privacy standards, enabling advertisers to adopt trends such as Facebook advertising with greater confidence.
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7. Enhancing Personalized Advertising
As consumer data accumulates, businesses can gain deeper insights into consumer behaviors and preferences, enabling more precise personalized advertising. According to data from HubSpot, a leading marketing automation solution provider in the U.S., 80% of consumers say they are more likely to engage with brands that offer personalized experiences.
Personalized marketing involves delivering tailored messages and experiences based on consumers’ needs and interests. This approach can build trust and loyalty, boost conversion and retention rates, and reduce churn and costs. However, personalized marketing heavily relies on technologies such as big data analytics, AI, and machine learning to collect and process consumer behavior data, preference data, and contextual data, transforming these insights into actionable recommendations.
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8. Social Media as More Than Just Traffic: A Platform for New Interaction Models
In 2025 and beyond, social media will remain one of the primary battlegrounds for communication between brands and their customers. However, compared to the early days of social media when most people spent significant time on these platforms, consumer attention has now been divided across various content and media platforms, such as streaming TV and mobile games. Brands and advertisers must therefore harness greater creativity, produce content that resonates with consumers, and engage in trending topics like ESG (Environmental, Social, and Governance), reflecting their commitment to societal concerns.
In the broader context of social media advertising, several trends offer potential breakthroughs:
- YouTube’s Continuing Influence: While TikTok attracts a significant portion of younger audiences, a large consumer demographic still relies on YouTube as their primary platform. For brands looking to build long-term value and loyal customers, long-form videos remain one of the best strategic tools. Furthermore, long-form content on YouTube can be repurposed into multiple short videos, demonstrating the enduring value of both the platform and longer formats.
- Social Platforms as Search Engines: For many Gen Z consumers, social media platforms have become their go-to for daily searches and exploring new information. For brands, this means that social media is no longer just about generating buzz or advertising products. Instead, it should be treated as a “search engine” to enhance interaction with potential consumers and unlock the true value of social media platforms.
- Product Placement Strategies: While live streams and YouTube/Instagram video sponsorships are effective for direct promotion, consumers are increasingly wary of excessive product placements, especially when the sponsored content feels disconnected from the creator’s usual themes. In the future, more brands will invest in selecting the right creators and influencers, focusing on copywriting, content themes, layout, and product placement techniques. By naturally piquing consumer curiosity and building trust, brands can encourage consumers to independently research and purchase products. After all, “people love to buy, but they hate being sold to.”
- Social Listening: Ask most marketing managers or advertising teams, and they’ll likely admit that social media’s built-in audience analytics tools are often incomplete. This is where social listening comes in—analyzing consumer feedback, opinions, and reviews to better understand their needs. These insights can be leveraged to plan product promotions, advertising campaigns, and other marketing strategies more effectively.
- Niche KOLs (Key Opinion Leaders): Beyond using content and ads to promote a brand, leveraging the relationship between KOLs and consumers can directly drive product sales. However, with rising advertising and marketing costs, many advertisers are adopting a different influencer strategy—focusing on smaller, niche KOLs who are more affordable but have highly engaged audiences. Unlike well-known influencers with widespread but diluted fanbases, niche KOLs often attract followers who are deeply interested in specific topics. For brands, investing time in researching and collaborating with multiple niche influencers can yield better results than spending heavily on a few high-profile KOLs.
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9. The Development of Augmented Reality (AR) and Virtual Reality (VR) Advertising
AR (Augmented Reality) and VR (Virtual Reality) technologies are rapidly evolving in the digital advertising space, showcasing impressive current capabilities and future trends. Many brands have already begun using AR/VR to enhance the interactivity and appeal of their digital ads. These technologies not only provide more immersive user experiences but also strengthen brand storytelling and emotional connections.
Looking ahead, AR and VR are poised to become major trends in digital advertising. As hardware becomes more accessible and affordable, users will have easier access to these experiences. AR/VR ads can also offer more precise data analytics, helping advertisers better understand their audiences and improve ad performance. For brands and advertisers, while the immediate impact of AR/VR may lean toward building brand image, these technologies can become a key strategy when traditional advertising methods no longer fully satisfy consumers. Some potential benefits include:
- Creating Unique Brand Experiences: AR/VR technology allows brands to offer distinctive ways for users to interact with their products or services, leaving a lasting impression.
- Enhancing Brand Loyalty: By delivering captivating virtual experiences, brands can forge deeper emotional connections, boosting customer loyalty.
- Data and Analytics: AR/VR advertising provides rich data insights, enabling brands to better understand their audiences, optimize ad strategies, and increase ROI.
- Innovation and Competitive Advantage: Brands that adopt AR/VR early can gain a competitive edge in the market and attract more users.
As early as 2019, Burger King in Brazil executed a highly creative AR-based promotional campaign. Consumers could download Burger King’s official AR app and point their smartphone cameras at competitors’ outdoor advertisements, virtually “burning” those ads. In return, they received coupons for free Whoppers, redeemable at nearby Burger King locations.
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10. The Repositioning of Live Advertising
Live advertising is a real-time, interactive ad format that helps businesses build closer connections with consumers. According to eMarketer, global spending on live advertising is projected to reach $13.2 billion in 2024, accounting for 4.1% of total digital ad expenditures. Traditionally, live advertising has been associated with selling products directly—commonly used by micro-merchants or various sellers in recent years for categories such as apparel, seafood, antiques, and more. Consumers can view product demonstrations during the live stream and place orders immediately, significantly streamlining the buying process.
For brand management, however, live advertising serves as a critical tool for acquiring new customers. Its key features include real-time audience aggregation, low customer acquisition costs, and high brand interactivity. Live advertising allows brands to quickly gather audiences in one place, using real-time interactions to build lasting impressions with fans. Its interactive nature also offers more leeway compared to one-sided communication through text or video ads, reducing the risk of diminished brand favorability caused by factors like audience inattention or misinterpretation of information.
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Conclusion
The digital advertising market is constantly evolving, and brands must keep up with the trends to gain a competitive edge. AI-powered big data and generative AI advertising will become powerful tools for brands in designing future campaigns. Retail media advertising and programmatic advertising, leveraging AI to optimize and automate ad placements, will also present significant opportunities in the expansive retail market.
Additionally, various advertising formats, such as voice ads, social media, and AR/VR, offer avenues for brands to integrate into their promotional strategies. By incorporating diverse formats and presentation styles, brands can discover new breakthroughs within their existing processes.