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The marketing world is undergoing fundamental shifts as new technologies, consumer behaviors, and platform dynamics reshape the way brands reach and engage audiences.
Among things, marketers must prepare for the redistribution of ad spend, the reinvention of search, the continued rise of Connected TV (CTV), the growing importance of marketing mix modeling (MMM), and the rapid evolution of virtual worlds as brand engagement hubs. Each of these shifts presents new challenges and opportunities, requiring businesses to rethink their strategies and adopt new approaches to stay ahead.
1. The Redistribution of Marketing Spend: Where Ad Dollars Are Going
Digital advertising is still growing, but the way budgets are allocated is changing. In 2025, overall digital ad spending is expected to increase by 7.3%, but traditional digital channels like Google Search are losing ground to newer, more effective alternatives.
Retail media networks (RMNs) are the fastest-growing segment, with a projected 15.6% increase in ad spend. More brands are shifting budgets toward in-store digital advertising, video, connected TV, and non-endemic advertising as they seek better attribution and direct access to consumers at the point of purchase.
Connected TV (CTV) is seeing 13.8% growth, taking ad dollars away from traditional linear TV and digital display advertising. Consumers are increasingly turning to streaming platforms, and advertisers are following them, drawn by CTV’s precise targeting capabilities and measurable performance outcomes.
Social media advertising is also expanding, with an 11.9% increase as brands double down on video and shoppable social commerce. Meanwhile, Google’s dominance in search advertising is fading. For the first time, its market share is projected to drop below 50% as advertisers shift their search budgets to Amazon, social search, retail media, and AI-powered search engines.
The redistribution of ad spending signals a major shift in the way brands allocate their marketing dollars. Businesses that want to stay competitive must reevaluate their media mix, prioritizing emerging channels that deliver higher engagement, better targeting, and stronger ROI.
2. The Reinvention of Search: A Multi-Platform Discovery Experience
Search is no longer a single-platform experience. In 2025, consumers are discovering brands and products through a fragmented ecosystem that includes AI-powered search engines, social media, and community-driven platforms.
Amazon is leading the charge, with 60% of product searches now beginning on the platform. AI-powered tools like Amazon’s Rufus have driven a 1,300% rise in customer traffic, making Amazon not just an e-commerce giant but a dominant search engine in its own right.
TikTok is also redefining search, especially among younger generations. 64% of Gen Z users now rely on TikTok as a discovery engine, using short-form videos to find recommendations, reviews, and information. Brands must optimize their content for video-first search experiences rather than traditional keyword-based queries.
Community-driven search is growing as well, with Reddit experiencing 46.7 million daily searches. Consumers are increasingly turning to Reddit for authentic, user-generated insights on brands, products, and trends. This shift highlights the importance of brand presence on forums and discussion platforms where consumer trust is built.
Visual search is another key factor in the reinvention of search. 62% of Gen Z and Millennials now prefer visual search over text-based queries, citing its ease of use and speed. AI-powered visual search capabilities are making it easier for consumers to find what they need without typing a single word.
Meanwhile, Google is adapting to these shifts, but in ways that make traditional search marketing less effective. More than 50% of Google searches now result in zero clicks, as users find answers directly on the search results page through featured snippets, AI-generated overviews, and knowledge panels. This means brands must focus on optimizing content for visibility rather than just driving clicks to their websites.
3. Connected TV (CTV) Becomes a Performance Marketing Powerhouse
Connected TV (CTV) is no longer just a branding tool—it has become a full-funnel performance marketing channel. As access to CTV inventory expands and advertising costs decline, brands are increasingly shifting their budgets toward streaming platforms to drive measurable business outcomes.
CPMs across CTV platforms have dropped significantly, thanks to Amazon’s entry into the market, which has expanded ad inventory and made CTV advertising more accessible. This cost reduction allows brands to reach large audiences with high-quality video content while maintaining performance-driven metrics.
With nearly 234 million CTV viewers in the U.S., advertisers now have unprecedented reach in a premium, non-skippable environment. Unlike traditional linear TV, CTV offers precise targeting capabilities using first-party data, behavioral segmentation, and even B2B targeting, as LinkedIn expands into streaming ads.
Advertisers can now track conversions, return on ad spend (ROAS), and even in-store purchases directly attributed to CTV campaigns. Strategic partnerships, such as Disney’s integration with Walmart Connect, are further enhancing attribution models, making CTV a more accountable advertising channel.
Beyond performance metrics, CTV delivers strong branding benefits. Ads on TV screens achieve 2.2 times higher recall than digital platforms, and the rise of shoppable CTV ads is enabling direct consumer action. Nearly half of viewers take action after engaging with a CTV ad, proving that the medium is just as effective for conversion as it is for awareness.
With CTV providing both measurable performance and brand lift, it has become an essential component of the modern media mix. Brands that integrate CTV into their advertising strategies will benefit from greater efficiency, stronger targeting, and better overall marketing impact.
4. Marketing Mix Modeling (MMM) Unlocks the Next Phase of Growth
Many traditional marketing attribution models over-credit performance channels while underestimating the long-term impact of brand-building efforts. This imbalance has led to an overreliance on lower-funnel tactics, limiting growth potential.
Marketing Mix Modeling (MMM) is emerging as a solution to this problem. By providing a holistic, data-driven approach to marketing measurement, MMM helps brands make smarter budget decisions and balance short-term performance with long-term brand investment.
In the past, MMM was expensive and time-consuming, costing between $100,000 and $350,000 and requiring months of data analysis. However, new AI-powered tools, such as Meta’s Robyn and Google’s Meridian algorithm, have made MMM more accessible and affordable. Businesses can now conduct MMM analyses in days rather than months, allowing for faster insights and more agile decision-making.
By adopting MMM, brands can better allocate resources, ensuring they are not over-investing in easily measurable performance channels at the expense of long-term growth. The companies that embrace this new approach to measurement will be the ones that unlock their next phase of sustainable success.
5. Virtual Worlds Are Becoming the Next Marketing Frontier
Virtual spaces are evolving beyond gaming to become full-scale shopping and brand engagement destinations. Platforms like Roblox and Shopify are democratizing access to virtual commerce, creating new opportunities for brands to connect with younger audiences.
90% of the 14.7 million new digital buyers expected between now and 2028 will be Gen Z. This generation spends an average of two hours per day in virtual worlds and expects brands to meet them inside these digital environments.a
Roblox, in particular, has become a critical platform for engaging younger consumers. In 2024, 48% of U.S. individuals aged 13-24 played Roblox, up from just 12% in 2020. Additionally, Gen Z spends 68% more time on Roblox than on TikTok, highlighting its potential as a powerful marketing channel.
As virtual worlds continue to grow, brands that invest in these digital spaces will gain an early-mover advantage in engaging the next generation of consumers.
Adapting to the New Era of Marketing
The future of marketing is being shaped by major shifts in ad spend, search, CTV, measurement, and virtual experiences. Brands that embrace these changes and adapt their strategies accordingly will thrive in an increasingly dynamic digital landscape. The time to innovate is now.
Whether you’re looking to refine your digital strategy, optimize performance marketing, or drive measurable engagement, we’ve got you covered. Let’s create something impactful together. Contact us at [email protected] to get started!
Chloe Zelch, Marketing Associate, Direct Agents