AdTechs continue to play a crucial role in the digital marketing sector, driven by technological advancements and changing consumer expectations. In 2024, specifically, the AdTech universe was the stage for two central debates: the discontinuation of cookies and the ubiquitous use of Artificial Intelligence. And, it seems, they promise to continue their protagonism this year, along with other challenges.
In the context of cookies, if they raise societal concerns about user privacy, they are also essential for ad personalization, providing a more relevant experience for the consumer. With browsers gradually eliminating support for third-party cookies, it is up to AdTechs to focus on alternative solutions for tracking and personalization, for example.
The use of Artificial Intelligence tools for online and offline campaigns has begun to revolutionize the way AdTechs can deliver results for their clients. AI, especially in its generative aspect, is already changing the landscape of the sector. With an initial focus on reducing operational costs, the tools become even more accessible and dominant in 2025 for ad customization and optimization, helping companies deliver more efficient and targeted campaigns.
Hybrid monetization, a strategy that combines different formats to increase revenue, should expand beyond the app universe – and AI will also be its engine here. After all, the approach that allows combining ads and purchases on the same platform tends to be adopted by various segments, and the use of AI can project scenarios and assist in developing more efficient strategies. Furthermore, AdTech platforms that help companies diversify their revenue streams should stand out, as more advertisers are expected to explore their own inventories.
In the macro scenario, with advertising budgets optimized to the extreme, the preference for direct value metrics such as CPA (Cost per Acquisition), ROAS (Return on Advertising Spend), and LTV (Customer Lifetime Value) will continue to grow, and once again, AI assists in the creation of reports and result tracking dashboards.
AI-based AdTech platforms help automatically adjust investments in real time, directing more resources to channels or campaigns that are performing better. In this case, indicators associated with "vanity metrics," such as CPM (Cost per thousand impressions) and CPC (Cost per click), will become less relevant as advertisers seek more accurate returns on their investments.
A world without cookies?
Even with the overwhelming rise of AIs, the main goal for 2025 will be to find solutions that harmonize and balance the dichotomy of privacy and personalization, meeting the expectations of consumers and the needs of advertisers. Meanwhile, in a constantly evolving advertising market, companies will need to demonstrate agility and diversify their monetization strategies.
Alongside this, the retail media (orretail media) also stands out as one of the highlights of digital marketing this year. In the face of a shortage of advertising inventories, the modality emerges as an interesting solution, especially for small and medium-sized retailers who will be able to explore their own advertising spaces more easily. Furthermore, the use of primary data in these channels, without the need to share information with third parties, can simplify privacy-related issues.
With this, retailers turn their digital channels into secondary sources of revenue and enhance the information ecosystem by offering relevant advertising content that helps strengthen the relationship with consumers. In this regard, with consumers increasingly inclined to make purchases via apps instead of browsers, apps are consolidating as a strategic channel for AdTechs.
Not by chance, tools offered by streaming platforms already allow merchants to reach app audiences without the need to create an app from scratch, expanding the possibilities of acquiring new users. Furthermore, apps, especially in the gaming sector, should become a significant source of advertising inventory, combining ads with in-app purchases.
And as advertising budgets shift even more rapidly from open TV to digital, creativity in exploring new inventories and creating interesting ads is the big "X" factor at the moment. The challenge for AdTech companies is significant, but there is an open path to numerous opportunities.
Finally, one of the industry's major challenges remains rethinking the approach to advertisements, which are often seen as irrelevant or invasive. To capture the consumer's attention, it is essential that advertising provides added value rather than being just a source of annoyance for a potential customer.
Jessé Benedito is the Lead Partnerships Manager at Yango Ads Space in Brazil
