If Perplexity wants to make a mark on advertising, Andrew Beck will be one to watch.

As head of business development, he’s been at the forefront of convincing advertisers (so far) to buy in — a task he took on just months before the company began selling ads around its search results.

And what a task it is: leading the AI startup’s bold attempt to challenge Google’s auction-based ad system, where marketers bid for sponsored links against search queries. Instead, Perplexity’s model lets marketers sponsor questions, generating AI-produced answers approved by the advertiser. The twist is its reliance on CPMs over CPCs, an unexpected approach for an AI-powered search engine.

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Several new ad networks joined the bevy of existing (and growing) retail media networks last year with new terminology to match: financial media networks, travel media networks and, as of just last month, the (allegedly) first real estate media network (Re/Max). Ah, 2024, the year that nearly every brand (well, every brand that hadn’t yet done so) realized the potential of an ad network. The thinking seems to go, if everyone else has one — and they’re getting the additional revenue from ad dollars — why shouldn’t my brand have one too?

Re/Max aside, the bulk of 2024 ad network debuts took place during the first half of the year (Chase, Revolut, United Airlines, Expedia, T-Mobile, Costco). The second half was quieter for new entrants (PayPal, Grubhub, Thrive Market), but many of the existing players beefed up their capabilities. Walmart finally finishing its Vizio acquisition was likely the biggest example of this. Could it be that all of the brands that were setting up their ad networks had already done so? Have we finally reached peak ad network?

“While the pace of new ad network launches has slowed, it is unlikely that we have fully reached ‘peak ad network,’” surmised Jim Misener, president of creative consultancy 50,000feet. “Instead, the market is likely entering a phase of consolidation and specialization.”

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Every December, the industry churns out breathless predictions about what’s next in media and advertising. Spoiler alert: most of it won’t happen. 

Unified CTV measurement? Influencers with integrity? Ad tech that’s not a black hole for your budget? Dream on. 

Instead of joining the prediction parade, let’s talk about the things we know won’t materialize in 2025 — because some traditions are just too persistent to break.

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Billy (not his real name) is the kind of senior marketer who usually has a hot take for every occasion. Brand safety? He’ll unravel the industrial complex behind it. Transparency? Buckle up; he’ll spill it all.

However, when it comes to Interpublic Group’s Acxiom, Billy’s take is conspicuously missing. It’s not because he’s uninformed; he just doesn’t think IPG has offered enough answers to form an opinion worth having. 

“It [Acxiom] was always much stronger in the U.S. compared to Europe in terms of the IDs at its disposal, so there wasn’t really enough we could’ve done with them,” said Billy, who is one of IPG’s clients. “And even then, it was us pushing for it, not them [IPG].”

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Despite serving as the unofficial kickoff to the advertising and media industry’s calendar, this week’s Consumer Electronics Show in Las Vegas doesn’t necessarily set the industry’s agenda for the year. But it does help to put it in motion.

Advertisers and agencies come to Sin City with their budgets planned out for the year, and with the annual technology showcase as the backdrop, they meet with publishers, platforms and tech vendors to map out how exactly to spend that money.

“You’ve already set the groundwork back in October [when many brands set their annual marketing budgets]. This is that ‘come to Jesus’ moment of, ‘You committed to me a million dollars. What are we doing this year?’” said Mark Wagman, managing director of data and technology at MediaLink, the UTA-owned consulting firm that will host the “Marketing Reinvented” session track during CES. “It’s a little bit of like, ‘What’s on the table and what’s coming?’”

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Both a boon of opportunity but also the bane of most media folk that have to immediately snap out of holiday mode and head to Las Vegas, CES is again upon us. With each passing year, CES becomes a more important staging area for agencies and ad-tech firms to not only learn what’s just around the corner but also to showcase what they’ve assembled. 

Tech, in its various guises, is rapidly becoming a differentiator among both holding companies and independent media agencies alike. And tech is what’s helped power French agency holding company Publicis to the forefront of its holdco brethren — at least by the gauge of financial results and stock performance. 

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This year, chatter concerning mergers and acquisitions is all about whether 2025 will spark a deal frenzy across advertising and ad tech. Here’s the twist: the deal flow never really dried up in 2024.

In fact, the year kicked off with LiveRamp snapping up Habu for $200 million, and the pace of dealmaking steadily picked up — though it never quite became a flood.

Month after month of 2024 delivered notable deals, from Walmart’s February acquisition of Vizio to Outbrain’s August purchase of Teads.

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When training data is similar across major large language models, finding ways to make them more creative and more differentiated is increasingly important. That reality has more enterprise customers asking for ways to make AI more creative when generating content — and to help with the actual process of thinking creatively.

Last month, the AI startup Writer released a new LLM called Palmyra Creative that aims to help enterprise businesses squeeze more creativity out of generative AI. The goal isn’t just to help with outputs; it’s also to help companies using AI in more creative ways. Palmyra Creative follows other domain-specific LLM released from Writer such as the the healthcare-focused Palmyra Med and the finance-focused Palmyra Fin. (Writer’s customers using various models include Qualcomm, Vanguard, Salesforce, Kenvue, Uber and Dropbox.)

In terms of creative thinking, AI models overall already have evolved quite a bit over the past few years. Some experts have found LLMs to be more creative than humans in areas like divergent thinking. Last year, researchers at the University of Arkansas published a paper exploring how OpenAI’s GPT-4 model is able to generate multiple creative ideas, find varied solutions to problems, and explore various angles. However, current LLMs still are largely limited to their own knowledge via training data — rather than lived experiences or learned lessons like humans are able to tap into.

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Have you ever planned a vacation using just TikTok to search your destination(s)? That’s more common these days than it used to be, thanks to the changing habits of consumers, who spend more time on social platforms or engaging with influencers.

According to new research coming out of Omnicom Media Group — aptly called The Future of Search — search has essentially evolved from a channel to a behavior, thanks to some of the above consumer adaptations as well as advances in AI and algorithmic application of content across the social sphere. 

Joanna O’Connell, Omnicom Media Group’s chief intelligence officer for North America, spearheaded the research but assembled a variety of team members from influencer shop Creo, cultural specialists Sparks & Honey, commerce shop Flywheel as well as design and research departments. S&H even did a Boolean query to see the latest cultural chatter on the topic. 

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Omnicom’s proposed acquisition of IPG, announced last month, would make it the world’s largest agency-holding company, with $25 billion in annual ad revenue and over 100,000 employees.

The deal aims to generate $750 million in cost synergies, primarily by consolidating back-office functions and reducing redundancies by potentially cutting 30% of staff. A depressingly familiar page in the corporate playbook.

However, the initial pitch from IPG and Omnicom’s executive teams focused on other outcomes, such as AI and the combination of both entities’ big bets in data-enabled marketing. 

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It’s unsurprising that more teenagers aspire to become influencers, given how many grew up watching TikTok stars like Charli D’Amelio and Ariana Greenblatt go from social media to the big screen.

During this year’s U.S. presidential election, we saw greater interest from candidate Kamala Harris to engage Gen Z through TikTok trends like “brat” summer. Many major creators have also expanded beyond social apps to launch careers in acting, music or starting other businesses.

These are the first cohorts to grow up as digital natives, so they daydream about being creators, explained Alyssa Stevens, global director of PR, social media and influencer marketing at independent agency Connelly Partners.

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In June 2024, the mobile game developer HOMA published “Clean It,” a casual game inspired by the #CleanTok TikTok trend — and the game became a viral hit. 

The game launch, the result of a collaboration between HOMA and TikTok, is the latest example of the TikTok’s intentional bid to court game publishers onto its platform.

“Clean It” was not the first TikTok-inspired game to be published by HOMA, whose most popular titles include mobile games such as “Merge Master” and “Aquarium Land.” For years, the developer has created casual games by combining popular game genres with relevant TikTok trends. 

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Tech giants and startups alike have spent the past year building new generative AI tools for users and advertisers.

From AI images for programmatic ads to a growing number of AI-generated TV commercials, brands are starting to explore new ways of thinking about creative across various platforms. The final weeks of 2024 had big news with expanded access and improved outputs of generative models like OpenAI’s Sora, Amazon’s Nova and Google’s Veo.

Despite the technical feats, AI-generated content has gained both eager devotees and harsh critics. Depending who you ask, the category’s a powerful new form of creativity, underwhelming “AI slop,” or an IP-stealing job-killer. However, the question is, which of these viewpoints will be the one to stick.

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Another year, another remarkable give and take for the advertising industry. See below for what we think is in store for 2025.

In
Anti-woke corporate backlash 
Out 
DEI corporate wave

In
Fragmentation of brand safety
Out
Industrialization of brand safety

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Marketers are faithfully obsessed with the shiny new thing when it comes to their brand activations. So it’s no surprise that in year two of having generative AI at their disposal, marketers have rushed to use it in their advertising. 

But so far, consumers aren’t as enamored with generative AI created ads as marketers have been. Throughout 2024, the marketers who obviously used generative AI to make their ads (Toys R Us, Under Armour, Coca-Cola) or touted the possibilities of generative AI in their ads (like Google’s Olympics ad they pulled following backlash) had their ads panned by the general public, particularly the creative community. 

Despite that, the expectation is that marketers and agency execs will continue to (and likely increase) the use of generative AI in 2025. Marketers are regularly asking questions about how creative agencies are using generative AI and how they can integrate it into the creative process for their brands. Creative agency execs, for their part, believe that generative AI is simply a new tool that they’re going to continue to experiment with in various ways – though most don’t see their experiments going fully generative AI powered, at least not yet. 

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Sports marketing spend shot up in 2024. Amid soaring viewership figures for last year’s Olympic Games, worldwide ad spend on sports-related advertising rose to $60.9 billion, according to WARC.

But sports marketing doesn’t always just mean chasing the largest audience possible. In 2025 brand marketers are set to seek audiences via niche, unconventional sports opportunities. Interest among audiences in spots such as padel, pickleball and darts is rising — and in recent months, brand marketers have moved to get in on the game while they’re still emerging.

Best Buy, for example, signed up this winter as one of the principal sponsors of TGL, a televised simulator golf tournament. The new league, set to debut on ESPN (including ESPN+) from Jan. 7, also counts So-Fi and Samsung among its brand partners.

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In 2024, generative AI proved itself to be far more than just a buzzword. From the flurry of AI-powered gadgets to the potential regulations, the second year of a massive innovation race advanced alongside scrutiny, with questions about transparency, copyright, and ethical use.

As a follow-up to last year’s AI timeline for 2023, our recap for 2024 highlights some of the most important headlines with a sampling from every month of the year.

January

The year started off with a bevvy of AI-related announcements at CES 2024, where major tech companies and consumer brands touted new tech: AI chips for laptops and phones, smart TVs, voice assistants for cars, AI-enabled beauty products, and retailer activations. A few weeks later, AI took over NRF 2024 with nearly two dozen exhibitors touting AI.

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2025 is expected to be a hell of a year, if you ask the Digiday staff. After the whirlwind that was 2024, the new year seems to promise a cocktail of chaos and topics the industry can’t escape. Or as Digiday managing editor Sara Jerde puts it, “2025 will be the year of the Twinkies, the cockroaches, TikTok potential ban, and third-party cookies.” 

Last year, several rocks were thrown in the water, ripple effects that’ll shake out in 2025 with everything from mergers and acquisitions, a la Omnicom’s proposed acquisition of IPG or BuzzFeed’s sale of First We Feast, to the proliferation of the social media landscape and the TikTok ban. 

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We’re wrapping up another eventful year. TikTok has found itself on the positive and negative sides of the news cycle, Google pulled its plans to kill third-party cookies and publishers continued to move the pieces of their revenue puzzles around searching for the right fit.

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Whichever way you look at it, 2024 was a slam dunk year for women’s sports. 

The WNBA enjoyed a banner season featuring newly minted superstars such as Caitlin Clark and Angel Reese while the NWSL saw TV audiences rise by almost 20% compared with the previous season, according to CBS.

Advertiser dollars followed. During the 2024-25 broadcast year, GroupM — still the industry’s largest media agency network, at least for now — has driven more client spending toward women’s sports, increasing it 115% by the end of October (a spokesperson declined to share the dollar amount).

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