How AI, mobile, and video are transforming online ads

2025 Guide: How AI, Mobile, and Video Are Transforming Online Advertising

Adapting to emerging digital marketing trends in 2025

The increasing use of mobile phones and wearable devices continues to transform the marketing landscape in 2025. One ongoing challenge brands face is engaging with audiences in real time across multiple platforms while developing relevant, direct-response marketing campaigns. Emerging technologies and strategies are significantly shaping digital marketing, and companies must act strategically if they want to remain competitive and lead with innovative approaches.

Jumping on every new technology trend can backfire. Instead, businesses must adapt their strategies to align with the expectations of modern consumers by integrating tools that enable more personalized, efficient interactions. Understanding how to adapt and seize new opportunities is essential. Let’s examine some key digital marketing technologies and trends that continue to evolve in 2025.

Marketing on the go

Forward-thinking businesses have largely addressed the need for mobile-responsive design, but there is still ample room for improvement. Mobile digital ads play a critical role in this space. Despite increased mobile traffic, studies show that retail conversion rates on smartphones still lag behind those on desktops. While users often research on mobile devices, many finalize purchases on desktops. Nonetheless, the mobile experience remains integral to conversions and must be prioritized.

Google continues to emphasize mobile-first indexing, meaning mobile optimization has a major impact on search visibility. Businesses must understand the needs of mobile visitors and build websites accordingly.

Marketing automation

Marketing automation is no longer optional—it’s a standard practice. Automation tools streamline, optimize, and measure marketing processes across channels. These platforms enhance efficiency and generate actionable data to refine campaigns. Automating segmentation, lead generation, content marketing, customer retention, and ROI tracking can dramatically improve outcomes. The key is selecting tools that best align with your marketing goals.

Marketing on social media

Today’s consumers expect continuous entertainment and instant communication. The reach and flexibility of social media make it a cornerstone of digital marketing. As of 2025, platforms like TikTok, Instagram, and LinkedIn continue to grow in user engagement and business utility. However, with algorithm changes and pay-to-play models becoming the norm, organic reach has declined. Brands must budget for promoted content and paid partnerships to remain visible.

Tailored content

Content remains the foundation of any successful marketing campaign, and personalization is key. In 2025, 89% of marketing decision-makers believe that personalized web experiences are critical to success in the next three years (Segment, Sepire). Whether for websites, email campaigns, paid search, or social media, customized content boosts engagement and drives conversions. Personalized experiences keep users coming back and are central to digital advertising effectiveness.

Marketing through video

1. Personalization is seen as essential

  • 89% of marketing decision-makers say personalization is critical for their business’s success over the next three years.
  • 85% of companies believe they already deliver personalized experiences — though only 60% of customers agree.
  • 63% of digital marketing leaders report challenges in delivering tailored customer experiences.

2. Growing investment & market expansion

  • The customer experience / personalization software market is projected to grow to $11.6 billion by 2026 (from about $7.6 billion in 2021).
  • Marketers now devote about 40% of their budgets to personalization (up from 22% in 2023).
  • 43% of organizations cite budget and execution as primary obstacles to implementing personalization.

3. AI & technology as drivers

  • 73% of business leaders believe AI will fundamentally reshape personalization strategies.
  • Over 92% of companies are using AI-driven personalization to fuel growth.
  • Only 17% of marketing executives say they currently use AI/ML extensively — even though 84% believe in its potential.

4. ROI, conversions & performance gains

  • High-growth firms generate 40% more revenue from personalization than slower-growing peers.
  • Personalized calls to action (CTAs) outperform generic versions by 202%.
  • 69% of companies are still increasing their personalization investment even amid uncertain conditions.
  • 52% of consumers report higher satisfaction when experiences are personalized.
  • Businesses using personalization see 38% more consumer spending on average.

5. Customer loyalty & retention

  • 49% of Gen Z say they’re less likely to buy from a brand if it offers impersonal experiences; 27% say they’ll stop buying or share negative feedback.
  • 60% of shoppers are more likely to return after a personalized experience.
  • Personalization can reduce acquisition and retention costs by 28%.
  • 62% of business leaders report gains in retention thanks to their personalization efforts.

6. Data, privacy & trust considerations

  • 69% of customers are comfortable with personalization — if based on data they explicitly share.
  • 78% of businesses see first-party data as their most valuable asset in personalization efforts.
  • Only 37% of consumers trust companies to handle their personal data responsibly.
  • 50% of companies say privacy regulations have increased the difficulty of delivering personalization.
  • 57% of senior marketing leaders struggle with inconsistent data when rolling out personalization.

7. Omnichannel & cross-channel challenges

  • Just 24% of companies are making effective investments in omnichannel personalization.
  • 43% struggle to maintain accurate, real-time customer data; 29% find it hard to establish a single source of truth.
  • 69% of customers want a consistent experience across digital and physical channels — yet many organizations fail to deliver.
  • Only 35% of organizations successfully provide true omnichannel personalization.

Source compilation inspired by Contentful’s “Personalization Statistics”.

Online Advertising and AI

Artificial Intelligence (AI) has evolved from a buzzword into a cornerstone of modern marketing. What was once a niche concept is now a standard practice, with major companies like Microsoft, Amazon, and Google heavily investing in AI-driven advertising. To illustrate the impact, Microsoft has noted that even a 0.1% improvement in ad click-through rate (CTR) through AI can generate hundreds of millions of dollars in additional revenue.

Predictive programming

Predictive programming represents a more advanced evolution of ad targeting. By analyzing user behavior—what they search for, browse, click, or watch—AI creates detailed user profiles to deliver more relevant, tailored ads. Unlike traditional retargeting, which may rely on a single transaction or website visit, predictive programming aggregates behavior over time to refine ad delivery. This sophistication allows brands to avoid serving irrelevant content, increasing ad effectiveness and user satisfaction.

Bottom Line

Personalization is no longer a “nice-to-have”—the stats show it’s central to marketing success in 2025. While many businesses aspire to deliver personalized experiences, execution remains a challenge, especially across channels, with data quality, and in applying AI effectively. But those who manage it well see significantly higher revenue, customer loyalty, and satisfaction.

What is a digital ad and how can it help me?

The online advertising space continues to evolve rapidly, driven by technological advancements. Modern digital advertising integrates AI, video, mobile optimization, and personalized content to improve ROI and better connect with consumers. These innovations help marketers increase brand awareness, generate leads, and drive conversions with unprecedented precision.

As we move through 2025, it’s clear that technology will remain at the heart of digital marketing evolution. Businesses that embrace innovative tools and continuously refine their strategies will be best positioned for sustained growth and competitive advantage.