Kantar Media Research Group Ltd.
Kantar Media Research Group Ltd.
11/06/2024 | Press release | Distributed by Public on 11/06/2024 09:34
From Gen AI guardrails to the population conundrum: Kantar unveils 10 marketing trends to watch in 2025
Kantar, the world's leading marketing data and analytics company, today releases Marketing Trends 2025, revealing the forces that will shape the future of marketing. The report shares the predictions of experts across Kantar, backed by extensive attitudinal and behavioural data. And offers critical insights for marketers as they navigate a rapidly changing landscape characterised by social and demographic upheavals, regulatory and legislative changes and unbridled technology advances.
According to Kantar these are the 10 trends that will make a difference in 2025:
• Brands go woke and definitely not broke: While evidence that inclusion is a powerful engine of brand growth continues to mount, marketers are still underestimating its impact. Kantar data shows that a brand's diversity and inclusion efforts influence the buying decisions of almost eight in 10 people worldwide. With major political, social and demographic changes set to make inclusion more personal for lots of people next year, it will become one of the most significant considerations for brands.
• The puzzle of slowing population growth: Products rely on populations getting bigger to drive sales. But global population growth is now under one percent and is predicted to go negative by the end of the century. Forces like people marrying and having children later, and living in smaller households, will exacerbate this shift. So will aging populations, who tend to spend less. This creates an urgency for marketers to predispose more people to their brand and to find new spaces in which to grow.
• Gen AI - safety will come first: Data provenance will be a big theme in 2025. Kantar research shows that more than two in five consumers don't trust ads that are AI-generated. As AI becomes more sophisticated, more people will be pushing for transparency in how it's used. Whether they're using GenAI to inform data-led investment decisions or to help create ideas and content, marketers will need reassurance that the training data the models are based on are trustworthy, relevant, and reliable.
• Looking to livestreaming: Livestreaming platforms like Taobao Live, Douyin and WeChat reach half the Chinese population, and some forecasts put live-commerce sales at 20% of total retail in China by 2026. Livestreaming ads can boost both short-term purchase intent and long-term brand affinity. Kantar's experts expect established brands to look to livestreaming ads to build long-term associations, while medium and smaller brands prioritise increasing awareness and driving immediate interest.
• Demanding more from Retail Media Networks (RMNs): Retail media could account for almost a quarter of all US media ad spend in 2028. By collaborating with retailers on their first-party data, marketers can be more precise in targeting and personalising their marketing, which in turn means detailed consumer insights can be used to optimise ad spend and improve campaign effectiveness. But in 2025, there needs to be transparency about the challenges holding back marketers from investing in RMNs; improved data access, specific media measurement needs, and the ability to drive brand equity.
• Embarking on the voyage to total video: The line between broadcast and streaming TV is now all but invisible to viewers. Heavy investment into broadcast TV advertising will continue to be spread across the TV portfolio, and further into video advertising, predicts Kantar. Marketers that take a nuanced approach, testing and learning to find the right mix across traditional channels, SVOD, and AVOD platforms will be best set for success.
• Social media to innovate to recapture attention: Just under a third of people say ads on social media platforms capture their attention, a marked decrease over last year's 43%. This can't simply be attributed to an attention deficit among younger audiences; disenchantment has struck every generation. Kantar expects to see more creative innovation and visual theatre attempt to capture people's attention in 2025: experimental camera shots, cuts, and new ways of telling old stories.
• Sustainability set to become marketing's job: 2025 is a big year for sustainability legislation ramping up in major economies, which will force businesses to see sustainability as an opportunity as well as a risk. Kantar analysis suggests that sustainability already contributes $193 billion to the value of the world's top 100 brands: by finding authentic ways to connect to the consumer, marketers will be able to turn sustainability initiatives into growth.
• Brands to tap into creator communities: The creator economy is booming, offering brands powerful opportunities to connect with engaged audiences and build trust. The tight-knit communities that creators bring together hold a great deal of power to predispose more people towards a brand. Collaborating with creators in a two-way relationship will be important for platforms aiming to grow their user base and ad revenue.
• Stretching the limits of innovation: Innovation will be a must for larger brands that can't easily grow in other ways: brands which can find new space in which to operate double their chances of growth. Those with high penetration and a strong probability of growth then have momentum to reimagine what they're in the business of and explore new revenue streams. In 2025, marketers can take inspiration from brands like Oreo and Ferrero which have pushed the boundaries through innovation.
Jane Ostler, EVP, Global Thought Leadership, Kantar, commented, "With so many technological and social shifts coming to a head, 2025 marks a pivotal moment for marketing. These trends represent not just incremental changes but a fundamental shift in how brands connect with consumers. Those who embrace these changes, prioritise data-driven strategies, and champion creativity and inclusivity will be best positioned for success. Our 2025 Marketing Trends put brands on the front foot in understanding these shifts, anticipating future challenges, and making informed decisions that shape their future."
According to Kantar these are the 10 trends that will make a difference in 2025:
• Brands go woke and definitely not broke: While evidence that inclusion is a powerful engine of brand growth continues to mount, marketers are still underestimating its impact. Kantar data shows that a brand's diversity and inclusion efforts influence the buying decisions of almost eight in 10 people worldwide. With major political, social and demographic changes set to make inclusion more personal for lots of people next year, it will become one of the most significant considerations for brands.
• The puzzle of slowing population growth: Products rely on populations getting bigger to drive sales. But global population growth is now under one percent and is predicted to go negative by the end of the century. Forces like people marrying and having children later, and living in smaller households, will exacerbate this shift. So will aging populations, who tend to spend less. This creates an urgency for marketers to predispose more people to their brand and to find new spaces in which to grow.
• Gen AI - safety will come first: Data provenance will be a big theme in 2025. Kantar research shows that more than two in five consumers don't trust ads that are AI-generated. As AI becomes more sophisticated, more people will be pushing for transparency in how it's used. Whether they're using GenAI to inform data-led investment decisions or to help create ideas and content, marketers will need reassurance that the training data the models are based on are trustworthy, relevant, and reliable.
• Looking to livestreaming: Livestreaming platforms like Taobao Live, Douyin and WeChat reach half the Chinese population, and some forecasts put live-commerce sales at 20% of total retail in China by 2026. Livestreaming ads can boost both short-term purchase intent and long-term brand affinity. Kantar's experts expect established brands to look to livestreaming ads to build long-term associations, while medium and smaller brands prioritise increasing awareness and driving immediate interest.
• Demanding more from Retail Media Networks (RMNs): Retail media could account for almost a quarter of all US media ad spend in 2028. By collaborating with retailers on their first-party data, marketers can be more precise in targeting and personalising their marketing, which in turn means detailed consumer insights can be used to optimise ad spend and improve campaign effectiveness. But in 2025, there needs to be transparency about the challenges holding back marketers from investing in RMNs; improved data access, specific media measurement needs, and the ability to drive brand equity.
• Embarking on the voyage to total video: The line between broadcast and streaming TV is now all but invisible to viewers. Heavy investment into broadcast TV advertising will continue to be spread across the TV portfolio, and further into video advertising, predicts Kantar. Marketers that take a nuanced approach, testing and learning to find the right mix across traditional channels, SVOD, and AVOD platforms will be best set for success.
• Social media to innovate to recapture attention: Just under a third of people say ads on social media platforms capture their attention, a marked decrease over last year's 43%. This can't simply be attributed to an attention deficit among younger audiences; disenchantment has struck every generation. Kantar expects to see more creative innovation and visual theatre attempt to capture people's attention in 2025: experimental camera shots, cuts, and new ways of telling old stories.
• Sustainability set to become marketing's job: 2025 is a big year for sustainability legislation ramping up in major economies, which will force businesses to see sustainability as an opportunity as well as a risk. Kantar analysis suggests that sustainability already contributes $193 billion to the value of the world's top 100 brands: by finding authentic ways to connect to the consumer, marketers will be able to turn sustainability initiatives into growth.
• Brands to tap into creator communities: The creator economy is booming, offering brands powerful opportunities to connect with engaged audiences and build trust. The tight-knit communities that creators bring together hold a great deal of power to predispose more people towards a brand. Collaborating with creators in a two-way relationship will be important for platforms aiming to grow their user base and ad revenue.
• Stretching the limits of innovation: Innovation will be a must for larger brands that can't easily grow in other ways: brands which can find new space in which to operate double their chances of growth. Those with high penetration and a strong probability of growth then have momentum to reimagine what they're in the business of and explore new revenue streams. In 2025, marketers can take inspiration from brands like Oreo and Ferrero which have pushed the boundaries through innovation.
Jane Ostler, EVP, Global Thought Leadership, Kantar, commented, "With so many technological and social shifts coming to a head, 2025 marks a pivotal moment for marketing. These trends represent not just incremental changes but a fundamental shift in how brands connect with consumers. Those who embrace these changes, prioritise data-driven strategies, and champion creativity and inclusivity will be best positioned for success. Our 2025 Marketing Trends put brands on the front foot in understanding these shifts, anticipating future challenges, and making informed decisions that shape their future."
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