Marketing chiefs are heading towards the new year with a renewed sense of optimism, with two-thirds (65%) believing the business environment will be improve over the next 12 months, compared to 2024, as inflation subsides and we enter a new era of economic stablity.
That is according to WARC’s Marketer’s Toolkit 2025, based on the proprietary GEISTE (Government, Economy, Industry, Society, Technology, Environment) methodology, which further incorporates a global survey of 1,165 marketing executives, one-to-one interviews with leading marketers worldwide, and analysis and insight from WARC’s global team of experts.
As well as improving economic conditions, the report identifies a number of key trends that will shape global marketing strategies in 2025, including expanding brand building to encompass the entire customer experience; the tension between social media and brand safety; managing the impact of AI technology on the environment; and the growing cohort of consumers leading more solo lifestyles
However, as inflation subsides, the global economy enters a new phase, and consumer confidence rebuilds, the challenge for marketers is to shift from communicating price rises and discounting, to building or maintaining pricing power and show why the value of their brands are worth a premium price.
Marketers are advised to use ongoing brand-building to defend pricing strategies, avoid frequent changes in advertising that can confuse consumers and devalue a brand, and become the customer’s voice in the boardroom by influencing the 4Ps – pricing, product, promotion and place.
Close the customer experience gap
A growing global dissatisfaction with customer service quality is now a critical issue for marketers. The gap between the brand’s promise and the actual customer experience is widening as brands struggle with complex customer journeys, cost-cutting, and margin pressures. WARC claims that $3.7 trillion is at risk as customers cut spending or switch brands after poor experiences.
According to the Marketer’s Toolkit survey, the majority of brand marketers directly manage just two elements of customer experience: website and/or app design and measuring customer satisfaction.
Brands are recommended to adapt strategies to better align customer promise and experience, boost memorability and distinctiveness at critical customer touchpoints (apps, websites, retail outlets), and constantly test, learn and listen to feedback.
Campari Group US head of marketing Andrea Sengara commented: “A key part for me is getting input and feedback from everyone across the organisation […] From people’s experiences in-store and at bars and restaurants to customer experiences trying the product, this can all help us improve how we are building the brand.”
The digital dilemma
Despite enduring concerns about the prevalence of hate speech and misinformation, big tech platforms are perceived as indispensable to many brands’ marketing plans, claiming a greater share of ad budgets. Alphabet, Amazon and Meta are forecast by WARC Media to account for 44% of all global ad spend this year.
However, 40% of survey respondents expect brand safety to have a “significant impact” on their marketing strategy in the coming 12 months, up 10 percentage points in three years, yet only 8% plan to reduce or cut their investment in social media.
Concerns continue around the open web, the rise of AI-generated made-for-advertising (MFA) websites and the more than $80bn in global spend lost annually to ad fraud, according to Jupiter Research.
WARC claims that as industry initiatives to improve conditions have proved unsuccessful, it falls on brands to take a more active role in managing the places in which their ads are showing up.
The growing abundance of media choices present more opportunities for brands to rely less on the triopoly. Media planning is evolving to help marketers capitalise on, and mitigate the risk of, digital platforms’ AI-powered campaign management tools.
AI meets sustainability
Artificial intelligence may be revolutionising the advertising industry but the exponential promise of this technology is matched by its insatiable energy use.
Research has shown generating one image with a powerful AI model uses as much energy as charging a smartphone – between 5g and 10g of CO2 emissions. A typical campaign generates the same emissions as seven people do per year.
However, few marketers are engaged with looking at the intersection of AI, media buying and sustainability. Less than a third (32%) of survey respondents thought AI sustainability concerns were likely to influence their media buying in 2025.
WARC insists it is critical for brands and agencies to build sustainability into their AI plans. Media buyers can set the template for others to follow through building thorough sustainability frameworks to guide their work. Industry-wide collaboration will be vital to making sure the planetary impact of AI’s use in advertising can be monitored in consistent, scalable ways.
The age of atomisation
The number of people living alone has grown steadily over the past few decades. In 2023, there were an estimated 484 million single-person households globally, accounting for one-fifth of all households worldwide.
They are expected to grow by 48% by 2040, outpacing the growth rate of all other household types. Living more solitary lifestyles, these consumers are becoming increasingly ‘atomised’ as they shop, dine, and entertain themselves on their own.
However, relatively few marketers appear to be targeting products or services to this segment, or even communicating with the right emotional resonance to help connect with this audience.
Brands have a real opportunity to target this audience with products and services that cater to their specific needs and reduce the single-person ‘penalty’ to make them feel valued.
WARC insight director Aditya Kishore said: “While rapid growth worldwide is unlikely in 2025, there are reasons to expect more stability than we have had in recent years as central banks regain control over inflation and interest rates decline. WARC is forecasting global ad spend will grow to $1.15trillion next year.
“Finding the right strategies for this new economic phase is a major theme for the Marketer’s Toolkit 2025, as is expanding perceptions of brand building to encompass the entire customer experience. Marketers will need to carefully identify the areas of opportunity and develop considered strategies to leverage them. We hope this report helps.”
Related stories
99% of brands plan martech overhaul in the year ahead
Don’t let AI tools erase key marketing skills, CMOs told
Kantar reveals top trends for marketers to survive 2025
Poor access to data is forcing bosses to turn to gut-feel
UK bosses plan major data strategy overhaul in 2025