As 2024 comes to a close, it’s time to reflect on the past year. We hope this year has been an eventful one for you! It’s been an exciting year for the advertising industry, too, with plenty of growth and innovation. U.S. digital ad spending was projected to reach $298.4 billion in 2024. As the year wraps up, we’ll soon find out if that prediction held true.
Looking ahead, it’s the perfect time to explore what’s on the horizon for 2025. MGID has been closely monitoring emerging trends to help you stay ahead of the curve. From advanced cross-device targeting to sustainable ad practices, these shifts are set to redefine the industry — and we’re adapting to ensure even greater results for our clients.
Let's see what trends await us and how we can meet them fully equipped!
1. AI-Enhanced Personalization on the Rise
Artificial intelligence is revolutionizing advertising, with 69.1% of marketers already using it to enhance their operations. AI's real-time analysis of consumer behavior enables brands to deliver hyper-personalized messages tailored to individual users. Gone are the days of generic ads. Now, ads are designed to resonate deeply, reflecting user preferences, behaviors and even context.
For example, connected TV (CTV) ads can showcase family vacation packages to parents while promoting trending solo trips to singles — all updated instantly. This precision doesn’t just improve engagement: it boosts cost-efficiency and maximizes ROI. Predictive analytics, a key AI capability, is also transforming campaign strategies by optimizing budget allocation and long-term planning. It’s no surprise that 56% of marketers say their company is taking an active role in implementing and using AI.
Examples in Action
Real-world examples highlight AI’s transformative power. RedBalloon used AI to test 6,500 variations of Google ads daily, achieving a 1,100% return on ad spend. Similarly, Bayer Australia employed AI for ad timing during peak flu seasons, reducing costs by 33% compared to the previous year. These cases showcase how AI delivers personalized and efficient advertising solutions.
How MGID Makes a Difference
At MGID, we’re pushing the boundaries of AI-powered personalization to help advertisers achieve superior results. Our AI tools don’t just create engaging ads — they monitor campaigns for fatigue, recommend updates and provide fresh creative alternatives to keep performance high. With features like performance prediction and proactive recommendations, MGID enables advertisers to deliver campaigns that resonate deeply with their audience while maintaining impressive click-through rates and ROI.
2. Breaking Free from the Grip of Walled Gardens
Big tech giants like Google, Apple and Meta continue to dominate the digital advertising landscape. This control limits how publishers can connect with their audiences, making it harder to drive organic traffic from platforms like search and social media. According to Magna, digital pure plays hold 69% of the market share, with Google, Meta and Amazon capturing 80% to 90% of digital ad spend in markets outside of China.
For publishers, this reliance on "walled gardens" creates a significant challenge. To stay competitive, they need to focus on collecting and utilizing first-party data — information gathered directly from their own platforms through user interactions. This strategy not only reduces dependence on third-party platforms but also enables publishers to build direct relationships with advertisers. By controlling their own data, publishers can improve revenue streams and create long-term stability.
Examples in Action
In response to the challenges posed by walled gardens, The New York Times has increasingly relied on first-party data to fuel its advertising strategy. By leveraging insights from its vast subscriber base, the company has been able to build more targeted ad campaigns and reduce reliance on external platforms, achieving a more direct and profitable connection with advertisers.
In addition, The Guardian has invested heavily in cultivating first-party relationships with its readers. By creating premium subscriptions and leveraging its direct data, the media company has reduced its dependency on Google and Facebook, allowing it to increase ad revenue through targeted campaigns that resonate with its audience.
How MGID Makes a Difference
MGID+ provides the tools publishers need to thrive independently. From premium monetization solutions to advanced audience acquisition strategies, MGID+ empowers publishers to reduce their reliance on walled gardens. Features like Campaign Studio, personalized content recommendations and detailed analytics help publishers grow their audiences and make smarter, data-driven decisions.
Additionally, over 95% of MGID’s traffic comes from direct publisher partnerships. This ensures advertisers access high-quality inventory while publishers maintain control over their audience relationships. With MGID+, publishers can build a sustainable and resilient approach to digital advertising, no matter how dominant the walled gardens become.
3. The Power of First-Party Data
With third-party cookies being phased out and privacy regulations on the rise, first-party data is becoming a vital asset for advertisers. This data, collected directly from users through their interactions with websites or platforms, enables more personalized and privacy-compliant ad targeting. By relying on first-party data, advertisers can deliver highly relevant messages while respecting user privacy. For example, publishers can use browsing history or subscription preferences to serve tailored ads, creating a more meaningful user experience and driving better ROI.
The importance of first-party data continues to grow as the advertising landscape becomes more privacy-conscious, ensuring a balance between personalized ads and user trust.
Examples in Action
Amazon has long relied on its vast troves of first-party data to create highly personalized shopping experiences. By leveraging data from user purchases, searches and preferences, Amazon delivers highly targeted ads that resonate with individual shoppers, boosting both ad revenue and customer satisfaction.
A completely different example comes from Spotify. As a music streaming service with millions of users, Spotify uses first-party data to deliver personalized ads based on listening habits, location and demographics. This approach has helped Spotify build a more engaged user base while enabling advertisers to reach highly relevant audiences.
How MGID Makes a Difference
MGID is fully committed to leveraging first-party data to create personalized, privacy-first ad campaigns. By working directly with publishers, MGID gains exclusive insights into their audiences, allowing for more precise targeting and effective ad strategies.
Through integrations with platforms like LiveRamp Connect, MGID helps advertisers activate their audiences globally, using solutions like Seller Defined Audiences (SDA) and Unified Identifiers to ensure accurate targeting while maintaining privacy standards. Additionally, MGID's Audience Hub enables publishers to transform first-party data into actionable insights, strengthening the connection between advertisers and their audiences while boosting overall campaign performance.
4. Innovations in Cross-Device and Hybrid Targeting
As technology continues to advance, the boundaries between devices are becoming increasingly blurred. Hybrid targeting strategies, which span multiple platforms, are gaining ground. Connected TV (CTV) and digital out-of-home (DOOH) advertising now work in tandem with mobile and desktop devices, creating a unified customer journey. For example, a user might see an ad on their TV and then receive follow-up offers or reminders on their smartphone.
This seamless integration allows brands to reach consumers at multiple touchpoints, increasing brand recall and engagement. The ability to deliver ads across different screens not only helps improve personalization but also boosts conversion opportunities. With cross-device and hybrid targeting, brands can create a more cohesive and impactful user experience that drives stronger marketing performance.
Examples in Action
Nike’s marketing strategy often integrates CTV ads with mobile follow-ups. After a user watches a Nike commercial on TV, they might receive targeted ads on their smartphone for specific products they viewed or showed interest in, reinforcing the message and boosting the chances of conversion.
Similarly, Coca-Cola successfully uses hybrid targeting to reach consumers through various devices. A user might first see an outdoor digital ad (DOOH) in a high-traffic area and later receive a tailored promotion on their phone, ensuring continued brand exposure and engagement.
How MGID Makes a Difference
MGID’s advanced targeting capabilities enable advertisers to implement cross-device and hybrid targeting strategies seamlessly. With its data-driven approach, MGID helps brands track and engage users across different screens, ensuring that messages are consistent and relevant throughout the customer journey.
With robust tools for audience segmentation, ad retargeting and personalized content delivery, MGID ensures that brands can optimize their cross-device strategies, increasing engagement and driving conversions across multiple touchpoints. This cross-device capability empowers brands to create more personalized, engaging and effective advertising campaigns that adapt to the evolving digital landscape.
5. Ad Tech Embraces Sustainability
Sustainability is no longer a buzzword — it's a crucial aspect of modern business. In the advertising world, publishers are increasingly adopting supply path optimization (SPO) to streamline their operations and minimize the environmental impact of programmatic ads. By cutting down on unnecessary intermediaries, publishers can reduce the carbon emissions associated with excessive ad calls and improve efficiency.
For example, when a publisher partners directly with advertisers, it not only saves on costs but also slashes the environmental footprint created by reselling inventory through multiple parties. As consumers demand more environmentally responsible practices from brands, this shift to more sustainable advertising methods benefits both the planet and businesses.
Examples in Action
The global brand Unilever has committed to reducing its carbon footprint and recently announced plans to reduce its digital ad emissions. By optimizing supply paths and focusing on direct partnerships, Unilever is lowering its environmental impact while ensuring more effective and efficient campaigns.
Another global brand, Nestlé, is taking steps toward sustainable advertising by prioritizing SPO. By minimizing the number of intermediaries in the ad supply chain, the company reduces both costs and the carbon footprint of its digital campaigns.
How MGID Makes a Difference
MGID embraces sustainability through supply path optimization (SPO) by maintaining direct partnerships with publishers. With 95% of traffic sold via MGID’s SSP coming from direct deals, advertisers avoid resold inventory, which reduces both intermediary fees and environmental impacts. This efficient supply path ensures that ad campaigns are clean, effective and aligned with sustainable business practices.
MGID's approach to SPO not only supports a more eco-friendly advertising ecosystem but also improves buyer satisfaction by offering more transparency and control over ad inventory. As a result, both advertisers and publishers benefit from more sustainable and cost-effective ad operations, driving a positive impact on the environment and their bottom lines.
Conclusion: Looking Ahead
As we look toward 2025, one thing is clear: digital advertising is only going to get smarter and more dynamic. With new technologies, data-driven strategies and a focus on sustainability, the industry is moving fast, and those who adapt will stay ahead.
At MGID, we're already prepared for what's coming next. If you're ready to step into the future of advertising, we're here to help you make the most of it. Together, we’ll turn today’s challenges into tomorrow’s opportunities and stay ahead of the curve!
