Colm Sherwin, chief digital and investment officer with Core shares his Top 10 predictions for 2025.
- The Lawsuits Continue, But Will We See Change?
Alphabet, Meta, and TikTok collectively command around 60% of Ireland’s total ad spend, highlighting their dominant influence in the shifting advertising landscape. However, as we step into 2025, the future of these tech giants appears increasingly uncertain.
TikTok faces the looming threat of a U.S. ban, Alphabet awaits the outcome of a Department of Justice case, and Australia is considering prohibiting social media use for children aged under 16 years old. Adding to the uncertainty, Meta’s recent decision to replace its fact-checking program in the US with a ‘community notes’ system raises concerns for advertisers.
While regulatory developments often take centre stage, the critical question remains: will 2025 bring transformative changes to the tech industry?
- The Fight for The Lower End of The Funnel Heats Up
According to The CMO Survey by Deloitte, Duke University, and the American Marketing Association, short-term performance budgets are projected to grow by 15% in 2024, now comprising 68.8% of total advertising investment.
This trend is reflected in the quarterly earnings of the tech companies. In Q3 2024, Snap reported a 16% rise in direct response advertising revenue, while brand-oriented advertising fell by 1%.
This shift is hardly surprising, as tech companies are increasingly focused on performance marketing. Recent launches in this space include Google’s Performance Max, Meta’s Advantage +, TikTok Shop, YouTube Demand Gen, and Pinterest’s new Performance +. These offerings highlight the competitive push to capture marketing budgets at the lower end of the funnel.
For advertisers, the opportunity lies in testing these innovative solutions. However, success hinges on conducting tests anchored in clear, measurable KPIs.
- AI Produced Content, Advertising & Ethics
By 2029, nearly 11% of ad spend is expected to be allocated to AI-generated content. Coca-Cola’s decision to recreate their iconic Christmas ad using AI ignited discussions about the necessity of such technology. Similarly, the release of a new podcast series featuring Michael Parkinson, entirely produced using AI two years after his passing, has stirred further debate.
As these conversations gain momentum, a critical question emerges: will advertisers feel at ease placing their ads alongside AI-generated content?
- The Impact of AI On Social and Search
The boundaries between social media, search, generative AI, and retail media are becoming increasingly blurred. With the rise in searches across various platforms, the journey from discovery to purchase is growing more fragmented.
In 2025, AI is poised to reach mainstream adoption through mobile devices, marking a turning point in how we discover brands online and driving significant disruption in the digital landscape.
- The Growing Influence of Digital Audio
From Donald Trump using podcasts to boost his U.S. presidential campaign to Gerry ‘The Monk’ Hutch featuring on Nicola Tallant’s Crimeworld, it’s clear that digital audio is more powerful and influential than ever.
Despite this, less than 10% of audio ad spend is allocated to digital platforms, suggesting advertisers are underinvesting in this rapidly growing medium. As we move into 2025, significant growth in digital audio ad spend is expected—but the question remains: which budgets will advertisers reallocate to fuel this expansion?
- Social First Becomes the Norm for Creatives
In 2025, social media platforms like Meta, TikTok, Pinterest, and X are projected to account for 34% of total ad spend in Ireland, highlighting their critical role for advertisers. Despite this, some marketers continue to prioritise creating content for traditional media channels first, relegating social media to an afterthought. This outdated approach is no longer effective.
Social-first strategies must go beyond simple cut-downs of TV ads; they require content designed specifically for each platform. Platform-native storytelling is essential to capture attention and build brand affinity in crowded feeds. By aligning the right creative assets with clear objectives, advertisers can achieve stronger results.
- The Growth of Ad Supported Video
Video consumption continues to fragment, yet 2024 marked a year of growth across all platforms. Traditional TV enjoyed a standout year, boosted by a packed sporting calendar, while Video on Demand (VOD), including Broadcast (BVOD), saw growth exceeding 16%.
Additionally, new FAST TV channels were launched locally, with Sky and Virgin Media introducing fresh offerings. This upward trend is set to persist in the year ahead, underscoring the vital role ad-supported video plays in advertisers’ media strategies.
- Retail Media Explodes
Globally, retail media is projected to outpace TV ad spend in certain markets by 2028. Closer to home, while we may be some way off from this milestone, 2025 will mark the beginning of the journey for many advertisers entering the digital retail media space.
The local launch of Amazon.ie will intensify competition with leading retailers like Musgrave’s Elevate, Tesco’s Dunnhumby, Dunnes, and Lidl all having their own offerings.
- The Rise of AI In-Platform Tools
It’s becoming increasingly clear how AI is reshaping our industry. From content creation and audience tracking to personalisation and insight generation, the advantages of AI are now tangible.
Within tech platforms, the array of in-platform tools is expanding rapidly. This growth will likely spark discussions among advertisers about transparency versus efficiency, particularly given the “black box” nature of AI-driven optimisation.
However, as campaign performance continues to improve, it’s inevitable that more ad spend will flow into these platforms.
- Proof In a World Of Fragmented Measurement
Measurement is a challenge for advertising, not just digital. To achieve their business objectives, advertisers must foster a culture that prioritises clarity and focus. They need to define marketing’s role in supporting their business, establish clear KPIs for business health, and build a dedicated, curious team committed to these metrics.
It’s equally important for advertisers to avoid distractions from additional reporting metrics that are costly, time-consuming, and offer little meaningful insight. At the same time, they must manage the overwhelming volume of available data without losing focus.
Ultimately, proof of effectiveness remains the highest priority for advertisers as they navigate an increasingly complex and data-driven market.
