The digital media industry is transitioning into a new era, where technological innovations, regulatory changes, and market dynamics continuously present new opportunities and challenges for digital publishers. In this 'Digital Media 2025' overview, we share insights on the key trends for the upcoming year, including significant industry developments, programmatic advertising changes, Prebid's role, and the evolution of operational practices.
Significant Industry Developments
- Growth in DOOH and Retail Media: DOOH and Retail Media are set to continue their development. DOOH is likely to integrate more within programmatic frameworks, adopting strategies from traditional digital media. While retail media is expanding significantly, its integration with programmatic media still needs to be improved. Larger retailers are expected to rely heavily on direct sales, while smaller retailers seek suitable network partnerships among the many options available. Additionally, audio and CTV remain on the growth track.
- Market Dynamics and Big Tech Influence: Market dynamics could shift, particularly if Google decides to divide its services. Such a change could open up competition within ad tech, potentially creating new direct competitors for independent publishers. This scenario could arise if Google no longer derives revenue from publishers' ad sales. While social media continues to grow, it faces ongoing regulatory pressure. We'll see if any major changes materialise in 2025, but for some, the clock is ticking, especially in the US for TikTok.
- The Development of Third-Party Cookies: Although the sudden collapse of the third-party market has been averted, slow erosion is inevitable. The development of replacement technologies and practices will continue, with Chrome expected to introduce privacy controls at some point. Whether this will accelerate the erosion remains to be seen. The number of universal IDs in the market is substantial, and the number of providers will likely decrease over time.
- LLMs and User Experience: Integrated LLMs are expected to begin shaping the user experience in digital media. While the use of natural language may still need to become mainstream, these models will influence how content is created and consumed, enhancing personalisation and interactivity for users.
Programmatic Advertising & Prebid
- Server-Side Implementations: A strong focus on server-side technology in programmatic advertising is expected, with the potential for ad-server integrations to adopt server-side models. This shift promises improved efficiency for publishers and may streamline operations across programmatic environments.
- In-App Monetisation and Prebid SDK: Significant growth is expected in in-app monetisation as demand increases for ad solutions that resemble browser experiences. Utility and content-focused apps, which require more discrete ad formats and competitive auction models, may find Prebid SDK a preferred solution. This approach is especially well-suited for non-gaming apps that need auction models that are better aligned with their specific needs.
- Inventory Curation Through Sales Houses: Sales houses will continue to play an essential role in curating high-quality inventory packages for buyers. While buyers could manage this internally, external support remains valuable, mainly when done collaboratively with inventory providers to ensure quality and relevance.
Changes in Operational Practices
- AI-Driven Advertising Workflows: AI solutions will become standard in digital advertising workflows, optimising creatives, campaign allocation, and pricing. To support this shift, there will be an increased demand for quality, timely data alongside robust data infrastructure to ensure smooth AI-driven processes. While AI will likely not replace jobs in 2025, it will foster new roles and intensify competition among data specialists as the field grows more technical.
- Focus on Sustainability: Sustainability will grow in importance, emphasising quality over quantity in digital advertising. The industry will likely adopt more sophisticated methods, such as sell-side scoring, moving away from outdated metrics like ads.txt file length, which lacks insight into actual call load. Reducing digital waste will be prioritised, affecting partner selections, inventory, and media choices.
- Ad Tech Monetisation Models—Shift to SaaS: SaaS models will gain popularity in the ad tech industry instead of revenue share. It’s good that at least the core parts of the ad tech stack focus on publishers' total revenue rather than optimising their earnings through revenue share agreements. At the same time, there is growing demand (at least on the sales side) for partners who want to reduce Google dependency rather than strengthen vendor lock-in. We do not expect GAM’s market share to change significantly in 2025, but publishers want to build their plans B and C and focus on that.
As we move into 2025, the digital media landscape stands poised for transformation, where adaptability will be key for digital publishers navigating a dynamic environment. Embracing trends offers pathways to innovation and growth, equipping publishers to face evolving market demands with resilience and agility.
With a collaborative focus on emerging technologies, sustainability, and refined operational practices, the industry can forge a future that’s both forward-thinking and responsive to the challenges ahead. Our experts are always happy to continue the conversation on these and other topics related to digital media monetisation.