Here, Sam Buchanan, CEO of the Independent Media Agencies of Australia, reveals what he’s betting will be the talk of the town next year. And there’s plenty to be excited about.
Like most Australians, the national media sector is readying to breathe a collective sigh of relief as it farewells 2024. This year has been challenging, possibly brutal, for many, and while households have been up against the cost-of-living crisis and rising interest rates, agencies have struggled with shrinking advertising budgets and increased pressure to deliver results.
The winds of change are (thankfully!) starting to blow. We’re anticipating a rise in advertising spend in 2025, in line with lower interest rates and improved household spending. And while most indie agencies have successfully weathered the storms of 2024, the sector is still looking forward to a new year, with the promise of fresh campaigns, bigger budgets and renewed investment in new media and platforms.
So what exactly are we putting on our 2025 bingo cards? We’re anticipating a broad scale increase in technology and AI uptake, along with the prioritisation of privacy and consumer data.
Technology in everything we do
Out with the old, and in with the new – we’re predicting significant investment in new-look, owned tech platforms in 2025, as well as a rise in performance media budgets.
2025 will also be the year when social commerce becomes a staple within media plans. Consumers are looking to simplify their digital experience – and this includes streamlining their app and platform usage. Brands that embrace social media channels as viable shopping, education, information and entertainment platforms, sewing everything up into a neat package, will prevail.
We’re also expecting a rise in CTV and BVOD in 2025, along with digital out-of-home , podcasts, digital audio, and retail media. The consumer of 2025 is looking for engaging, non-intrusive content, and brands will need to get smarter with their creative to meet savvy customers. Short-form videos (think TikTok and Instagram Stories) will continue to dominate, but brands are now looking at different ways to engage with target audiences. Expect influencer marketing and content creators to be critical to brand campaigns in 2025, along with a rise in UGC leading campaigns.
In addition, watch out for publishers looking into building their own tech stacks and solutions, rather than being beholden to the tech giants.
Prioritising privacy and consumer data protection
In the wake of multiple high-profile hacking incidents and technology black-outs, consumers are more concerned than ever about their data and how it’s being used by brands. In line with this, national consumer privacy laws are set to significantly tighten in 2025, with the first tranche of new laws coming into effect, putting pressure on advertisers to be up front about how they collect and use data. Advertisers need to think about privacy by design and privacy by default solutions. Over communicating will be king – build consumer trust by telling customers exactly how their data is being used, and continue to talk about it.
In addition, the new laws banning children under the age of 16 from social media platforms will have a flow-on effect to other channels and how brands reach and engage with this age group.
First-party data will be the buzz word of 2025. For brands who haven’t already invested in first-party data strategies, now is the time to get real about your data. Invest in first-party data collection for targeted advertising and audiences, ensuring your campaigns reach the right people at the right time on the right platform. As the demise of third-party cookies looms, prioritising and getting serious about first-party data collection and strategies around how to utilise it in a post-cookie world is key.
AI for automation, creative and omnichannel marketing
The evolution of AI continues to dominate the conversation in many industries, including the marketing world. Agencies, brands and marketers are constantly looking at ways to not only leverage AI for their clients, but to use it to change the way they do things. Whether you love it, hate it or fear it, there’s no denying that AI has already been a game-changer for the marketing industry – think about its impact on everything from campaign optimisation, customer insights and predictions, content creation and more.
For the indies, these technological advancements have helped level the veritable playing field. Many indie agencies struggle to compete against large multinationals that have the dollars to invest in serious technology. AI has helped indie agencies to scale, by automating tasks, enabling media professionals to focus on human-centric, creative work. This year we launched our inaugural and industry-first AI Guiding Principles for members with an ethical approach to AI that we will update in 2025, because we believe that the responsible use of AI will be the next big thing for marketers and agencies.
AI and VR will also be harnessed in 2025 to bridge the gap between real life and technology for consumers. Expect AI and VR to be used in everything from retail stores to supermarkets to enhance the physical shopping experience and seamlessly connect in-store and online commerce.
We’re readying for another transformative year for the Australian media sector, with the indies playing a significant role in the national marketing ecosystem. While many agencies have struggled through the economic challenges of 2024, most indie agencies have thrived, with a host of new business wins. We believe indies should be on every advertiser’s pitch list if they are looking for a new way forward when it comes to media, leveraging the power of AI, and navigating a new privacy era. A healthy dose of indie agility has never been more important!
