What’s going to be big in digital marketing space in the coming year? Epsilon’s team of experts put on their thinking caps and share their thoughts on the key trends to watch out for in 2025…
Esme Robinson, Director of Platform Solutions Epsilon:
Retail media on course to reach maturity
We have been talking about Retail Media for a few years now, with some commentators even suggesting the term is already outdated. But instead, should we be looking at it like a proud parent when a child finally reaches maturity? Retail media has evolved from a secondary revenue stream into the core strategic driver for many retailers. Initially considered an add-on, retail media platforms now shape the entire business model, allowing retailers to leverage first-party data for targeted advertising.
Collaborations, like Curry’s partnership with Roku so brands to reach customers across Roku devices in the UK, including streaming players and Roku TV models, show how retailers are using retail media to reshape the customer journey. Tesco’s efforts to introduce video ads on its site also signal a shift towards a content-rich retail environment that attracts and retains consumers. Retail media is no longer just about monetising digital space but crafting personalised experiences that foster customer loyalty.
As it matures, retailers will refine product offerings and engage in precision targeting, making retail media a fundamental aspect of strategic planning. By embedding these media strategies into their core operations, retailers can drive long-term growth and strengthen consumer connections, marking a huge transformation in the retail landscape.
Maria Giacobbe, SVP, Business Development, Epsilon:
Make loyalty a journey not a destination
A one-size-fits-all approach to customer loyalty doesn’t work anymore. With consumers looking for value from brands, it’s becoming less about points and rewards and more about connecting with customers on an emotional level to win ‘share of heart’. Brands will need to see loyalty as an experience, not just a programme.
In our 2024 UK Customer Loyalty Index, we identified the fundamental loyalty drivers that predict future behaviour, including measures like quality, price, and service that must be on point. Aldi, who don’t have a loyalty program are a prime example of this having scored the highest out of the 10 brands within the grocery category in terms of attitudinal and behavioural loyalty.
Creating successful loyalty strategies will only be achieved by combining data-driven strategy and creativity. This way brands truly understand their audiences and deliver authentic engaging experiences that align both the brand and consumers’ values to create a shared sense of purpose. It also requires constant care and attention as loyalty is not a destination, but something that needs to evolve along with consumer attitudes.
Brands will have to tackle the CTV fragmentation challenge
This year we’ve seen new developments in the Connected TV (CTV) space, with Amazon Prime Video introducing ads and new interactive and shoppable formats, and the launch of the Freely service offering live and on-demand streaming. Netflix in the meantime saw a 150% rise in ad sales for 2023 after launching its lower-cost, ad-supported service, boosting revenue and stock performance. We can expect more developments in this space in the comping 12 months.
But with new opportunities come new challenges. Brands facing an increasingly fragmented CTV landscape will have to navigate multiple platforms to run media campaigns, potentially leading to overlapping budgets, and duplicated efforts. Fragmentation could also lead to discrepancies in metrics and difficulties in verifying where ads are being seen and weakening the consistency of brand messages.
To unlock its full potential, brands need a seamless, data-driven strategy across the entire customer journey. Accurately factoring in browsing habits, purchase history and engagement means better targeting and verification of user interactions, ensuring brands are reaching genuine audiences. Deeper insights into how long-term awareness impacts sales and lifetime value – going beyond traditional metrics like attention and recall – will be a real gamechanger, aligning brand awareness and performance more closely and ensuring money is well-spent.
The rise of ‘brandformance’
CTV is an ideal channel to drive the convergence of branding and performance marketing, known as ‘brandformance’, thanks to its ability to provide measurable outcomes from brand executions as we’re seeing with the introduction by Amazon Prime of shoppable formats.
This will become even more important as more brands shift their ad spend into streaming platforms. It’s predicted that CTV ad spend will surpass $42 billion by 2028. The enormous potential lies in CTV’s ability to combine brand building with precise targeting. For example, ESPN, Fox, and Warner Bros Discovery are launching a new platform, which will feature major professional sporting events. Imagine the potential for brands to leverage the moment when viewers are watching a live sports game to offer an interactive, limited time offer via Deliveroo.
As more and more platforms come online and the market continues to evolve, streaming services will have their ‘golden age’ with advertisers. But it’s only with better targeting capabilities and enhanced audience engagement that ad-supported streaming can deliver on its promise and sustain demand.
Ben Foulkes, VP Digital, Epsilon:
Programmatic advertising: Time for a name change?
X, the platform formerly known as Twitter continues to lose advertisers over trust and brand safety concerns and this exodus shows no signs of slowing down. Recent Kantar data reveals that 26% of marketers globally plan to decrease their spending with X in 2025, while overall trust for X ads has fallen from 22% to 12% since 2022.
Advertisers are moving onto more reliable and less controversial platforms like TikTok and Instagram, while innovative brands like Spotify and Netflix are leaning into programmatic advertising on both buy and sell sides. But programmatic advertising is often misunderstood. Re-framing its capabilities, like precision targeting and real-time optimisation, or even renaming it, could do more to show off its value and relevance, distancing it from outdated perceptions.
Better data-driven approaches mean programmatic offers personalised and relevant ads that can enhance the user experience and drive results. For instance, in the realm of CTV, a scalable and accurate identity framework enables brands to forge long-term connections with individuals, allowing CTV efforts to be linked to measurable performance outcomes.
Sustainability will drive second-hand marketplaces
The popularity of buying second-hand is surging. Platforms like Facebook Marketplace and Vinted are thriving as people increasingly seek pre-owned items, especially younger, eco and cost-conscious shoppers, who prioritise sustainable choices.
Retailers are keen to capture this commerce, much of which currently occurs off their platforms. This approach not only meets demand but also allows retailers to broaden their product range and attract new audiences, fuelling their retail media flywheel with richer data insights supporting more personalised customer experiences.
One of the biggest advantages of this model is that retailers don’t need to invest heavily in stock acquisition or storage. Sellers manage the supply chain, enabling retailers to expand their offerings without significant operational costs, making it a highly efficient way to scale their business. Additionally, embracing second-hand commerce inevitably improves a retailer’s eco-friendly image, resonating with sustainability-focused consumers while supporting long-term brand loyalty.
Elliott Clayton, UK Managing Director, Epsilon:
Moving closer to ‘personalisation’ perfection
Brands know that personalisation is essential for winning and maintaining customer loyalty. Consumers expect them to understand their needs and preferences – and to target them with ads that are relevant and timely.
We are seeing some progress, but there are still some challenges according to a consumer study published by Epsilon this year. Consumers are still getting irrelevant ads. Nearly half (47%) see the same ads too often and more than half (56%) report they often scroll past promotions that don’t resonate with them. More concerning are the issues raised with the disruption caused by advertising with just over a third (34%) saying ads pop up at the worst possible time.
At the heart of effective personalisation is a ‘person-first’ identity approach, which fundamentally transforms how brands engage with consumers. At its core is first-party data, which gives brands a comprehensive view of each shopper so they can make the shopping experience more personal. It also reduces the reliance on third-party data sources, including third-party cookies that will eventually become obsolete despite Google’s U-turn this year.
Brands that embrace first-party data will build lasting connections with shoppers and get them closer to personalisation perfection. By creating a seamless, tailored experience that resonates with individual preferences, personalisation can transform from a mere marketing tactic into a powerful tool for loyalty.
Focus on younger generations at your peril
In a study on personalisation that Epsilon undertook earlier this year, we found that in some cases brands are too busy focusing on personalising their advertising for younger generations and failing to target older consumers. The survey of 2,000 UK consumers shows that 38% of 18-24s say brands have got better at personalisation, while just 11% of over 55s felt the same. Two-thirds (67%) of over 55s say most ads are irrelevant to them and they simply scroll past.
This could be a costly mistake for brands. The 2030 Forecast published by Ogilvy Consulting suggests that 60+ is the fastest growing and wealthiest demographic, representing a potentially lucrative ‘silver economy’ for brands. Advertisers must be careful not to take a one-size-fits-all approach. As with younger generations – Millennials, Gen X and Gen Alpha – brands must tap into their interests, experiences and aspirations while understanding that older people are also tech and social media savvy and enthusiastic online shoppers.
By 2025, it’s estimated that the global spending power of those aged 60 and older will reach the trillions. With time spent by this demographic online only increasing, DTC brands in particular have a real opportunity to target consumers with more disposable income. Tailoring products, services and experiences to this group can lead to greater customer loyalty, higher lifetime value and access to a market that is less price-sensitive and more focused on quality and service.
Finally, get rid of third party cookies in 2025!
The never ending flip-flopping on third party cookies over the last few years – including the latest U-turn by Google – is not helpful for anyone. If I could have just one wish for 2025, it would be to finally get rid of third party cookies, which just leads to poorly targeted audiences supported by poorly measured outcomes. It’s far too messy as it stands today.
As an industry we need to start focusing on first-party data where brands own the relationship with the consumer and can drive really meaningful communications with them. The net-net of this is better advertising, which is good for brands and retailers, and better quality communications, which is good for consumers.
Consumers want to be connected to the brands they like, so let’s make sure it’s done in the right way.
