Title: Riding the Waves of Tech Turbulence: A Survival Guide for Advertisers and Publishers
Title: Riding the Waves of Tech Turbulence: A Survival Guide for Advertisers and Publishers
If you believed 2024 was a rollercoaster ride for digital advertising, brace yourself for 2025. The year will undoubtedly be marked by the power struggle between the mega tech giants, such as Google, Apple, Amazon, TikTok, and Meta, and regulators and publishers.
The orientation of these tech titans in the digital ad market has been steadily building strength for years, and it didn't let up in 2024. These industry heavyweights have been pushing publishers to the sidelines while forcing advertisers to adapt to their rules.
However, we must not make this situation an accepted reality. Google, in particular, has been faced with a series of legal challenges in Europe around antitrust practices. Meanwhile, in the U.S., the company has been preoccupied with lawsuits related to search and online advertising.
While no clear-cut solutions exist, the possibility of Google's browser and advertising business being broken up would likely lead to seismic shifts in the industry, possibly more disruptive than the ongoing third-party cookie deprecation fiasco.
Challenges for Publishers
The publishing landscape is indeed a tough nut to crack. The perennial struggle to retain audience attention, draw new interest, and grow ad revenues in an increasingly competitive environment has never been more intense. Moreover, Google's announcement about testing the removal of news publisher content from search results in Europe has added another layer of complexity.
Publishers should keep a watchful eye on big tech's legal battles but should primarily focus on their own strategies. The secret to success for publishers in 2025 will be mastering the process of first-party data, reducing their reliance on big tech, both for audience development and advertising revenues.
They should strive to unlock additional advertising revenue by directly collaborating with brands, streamlining the supply chain, and strengthening partnerships. Even though Google is maintaining third-party cookies, continuing to rely on these tracking methods is a risky endeavor, with some predicting an 87% cookieless web in the U.S.
Headwinds for Advertisers
Advertisers are grappling with a growing number of walled gardens that carry their unique rules and measurement methodologies. This is in addition to the emergence of digital media networks, digital out-of-home, and connected TV. Advertisers must now connect with their target audiences across various touchpoints in a coherent and structured manner, all while working within budget constraints.
Advertisers will increasingly seek direct deals with publishers that can provide tailored, curated audiences that match their customer bases. Moreover, with signal loss in the open web, there will be a heightened focus on monitoring campaign results with utmost care.
AI is set to emerge as a key factor in advertising, making a more prominent appearance in 2025. We're already seeing the impact of AI on creating customized creative at scale with generative AI tools, enabling dynamic and personalized messaging. This reduces reliance on large advertising agencies, making engaging and cost-effective campaigns more accessible to brands with smaller budgets.
AI can also aid in delivering unique, data-driven insights that were previously inaccessible, allowing for predictive performance evaluations. By leveraging machine learning to identify the best media placements, advertisers can maintain a competitive edge, while ensuring a human touch is maintained to combat AI fatigue.
In the grand scheme of things, the digital advertising landscape is poised for change in 2025. Both publishers and advertisers should focus on their individual strategies, adapting to new advancements while keeping themselves abreast of the trajectory of the legal battles.
Sergii Denysenko, a digital advertising expert, has highlighted the importance of publishers and advertisers preparing for the challenges ahead in 2025. In his insights, Denysenko emphasized the need for publishers to master first-party data, reduce reliance on big tech, and directly collaborate with brands to unlock additional advertising revenue.
As more advertisers grapple with walled gardens and a cookieless web, Denysenko predicts AI will play a significant role in 2025. He believes AI can help create customized creative at scale, deliver unique data-driven insights, and maintain a competitive edge for brands with smaller budgets.