AI agents are around the corner. CTV audiences are multiplying. Even Google, the long-reigning giant of search (or the adtech monopoly), is feeling the heat, with its traffic dipping below 90% [a] for the first time in a decade. And that’s just the beginning.

So, what does all this mean for adtech businesses? Let’s break down the adtech trends shaping 2025 and why they matter.

AI in the post-hype era

AI’s been on a rollercoaster - huge promises, crazy expectations, and some serious breakthroughs. Now that the hype dust is settling, we’re seeing where it really delivers.

While machine learning has been playing an important role in adtech for years, like predicting ad outcomes, optimizing ad campaigns, and creating audience segments, gen AI takes it a couple of steps ahead.

It’s no longer just writing ad copy with LLMs. Brands are using AI to generate everything, like images, display ads, and videos, to scale campaigns faster while cutting costs. No surprise that 80% of US ad buyers are already using or exploring generative AI for media planning and activation. [b]

Source: IAB’s 2025 outlook report

Opportunities

• Creative automation:
  That said, creative automation is becoming increasingly important for adtech. AI tools like Sivi enable brands to generate unique, branded display ads, along with ad copy and images, in a minute. With the launch of Sivi’s UI SDK, ad tech platforms can integrate the AI design generator directly, reducing drop-offs in advertiser onboarding.
  
  

  

  Sivi’s AI design generator integration with The Media Ant

  
  

• Collaboration gap:
  While the AI tools are taking off, more than two-third of the ad buyers don’t have collaborative generative AI resources within their companies. Adtech platforms that streamlines these fragmented generative AI tools and resources in one place can help companies collaborate better and drive efficiency.
  
  

• The rise of AI agents:
  Brands are primarily using AI agents for simplifying decision-making and processes. But it can go beyond that. With a little human oversight, combining multiple AI agents with various abilities can help analyse data, create ads, and optimise campaigns on a scale and speed that’s never been done before. Companies that crack this integration will be at the forefront of adtech’s next evolution.

CTV: Streaming on the steam

With advanced targeting like cross-device and contextual targeting, advertisers can optimize campaigns to maximize returns while enjoying lower CPMs, thanks to a surge in new inventory. As CTV ad spend is set to grow in the coming times, Linear TV is facing a decline due to the lack of cyclical events.

Opportunities

While CTV’s growth is undeniable, it’s not without challenges like the streaming platforms’ fragmentation, viewership surge, and the lack of cross-platform measurement standards. But with more and more users and platforms in the mix, the moment to tackle the challenges and capitalize is right now.

Commerce media, where ads meet transactions

With the potential to generate $1.3 trillion enterprise value in the US by 2026 [c], commerce media is surely turning heads. But what exactly is it? Simply put, it’s advertising that connects media impressions to omnichannel (retailers, publishers, etc.) transactions.

Source: McKinsey’s article on commerce media

By leveraging first-party data of retailers, adtech platforms offer smarter audience targeting, leading to personalized ad experience across multiple touchpoints and higher conversion rates. This includes shoppable ads, live commerce, or shoppable TVs that enable viewers to purchase directly from the screen/content they are in.

Amazon pushed it further with Amazon Retail Ad Services, expanding its adtech to brands beyond their own platform. Through this service, retailers can leverage their first-party data and display contextually relevant ads on their websites and apps.

Opportunities

Though it has benefits like proximity to commerce and closed-loop measurement, the rapid growth of retail media networks (RMNs) has led to ecosystem fragmentation and lack of standardization.

As new channels like live commerce and shoppable TV are gaining traction, advertisers need better measurement tools. By exploring cleanroom solutions and partnerships with media companies, adtech platforms can securely track the shoppers’ interaction and provide advertisers with real-time insights into campaign performance across touchpoints.

Search: Inside out

Google’s era may not be over, yet. But for the first time in a decade, Google’s search traffic has declined below 90%. By 2026, it’s expected that traditional search engine volume could drop by 25%. [d]

Source: Search Engine Land article on Google search market share drop

Younger generations, like Gen Z and millennials, are slowly bypassing Google for social media and generative AI to discover brands and products. 46% of Generation Z and 35% of millennials [e] prefer social media over traditional search engines. For brands, that means meeting customers where they are scrolling.

But it’s not just social media. Generative AI is making search feel less like a database query and more like a conversation. This influences people to adapt to intuitive and personalized ways of obtaining information.

Opportunities

This shift presents new opportunities for brands to engage with consumers in fresh, innovative ways.

Beyond using gen AI for ad copy generation, researchers are exploring the potential of embedding ads directly into LLMs. Also, Perplexity AI's founder, Aravind Srinivas, has proposed that AI agents could become the primary target for advertisements instead of human users.

This can radically transform adtech, from altering the ad formats to how they are consumed. Keeping an eye out on emerging trends can help you adapt early and be at the forefront of adtech innovation.

Cookie-less, ads more

With the rise of privacy regulations and Google’s plan on eliminating third-party cookies, the adtech industry is pivoting towards first-party data and privacy-first strategies. Over the past few years, advertisers and supply-side partners have been making advancements to leverage first-party data to better understand and engage their audiences without compromising privacy.

Another key trend that is gaining traction is contextual targeting, which relies on the web page’s content to place contextually relevant display ads instead of relying on tracking user behavior.

Opportunities

As privacy concerns grow, brands that develop transparent data practices and communicate them to customers can enhance trust and privacy compliance. Adopting targeting methods such as contextual advertising and building cross-platform measurement solutions will position the adtech solutions for success in the cookie-less future.

With CTV, social, search, and display expected to account for nearly 70% of ad spending in 2025 [b], machine learning and generative AI are about to make advertising more personalized and engaging. But as the industry moves forward, preserving quality and transparency within the supply chain is of growing importance. Staying ahead of these changes will be the key to maintaining relevance and staying at the forefront of the fragmented ad landscape.

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References

[a] https://searchengineland.com/google-search-market-share-drops-2024-450497

[b] https://www.iab.com/insights/2025-outlook-ad-spend-opportunities-growth/

[c] https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/commerce-media-the-new-force-transforming-advertising#/

[d] https://www.gartner.com/en/newsroom/press-releases/2024-02-19-gartner-predicts-search-engine-volume-will-drop-25-percent-by-2026-due-to-ai-chatbots-and-other-virtual-agents

[e] https://www.emarketer.com/content/search-behavior-being-redefined-thanks-generational-shifts