2024 was an exciting and eventful year for the digital advertising industry, not least due to Google’s decision to finally overturn the end of 3rd party cookies after years of postponement, which has triggered far-reaching discussions and will have a lasting impact on the digital advertising ecosystem.
Of course, we cannot fully predict what the coming year will bring for the adtech and advertising industry, but trends and tendencies are already emerging. In this article, ad tech expert Tom Peruzzi reveals which five developments will play a key role for publishers, agencies, advertisers and technology providers in the coming year, which channels market players should keep an eye on and which alternatives to existing tracking methods could become established in the long term.
The hot topic: DoJ and EU vs. Google
The proceedings by the US Department of Justice (DoJ) against Google and the parallel investigations by the EU have the potential to fundamentally change the digital advertising world, and regardless of the outcome of the proceedings, it is foreseeable that Google will be defending itself legally for years to come. But what does this mean for the market?
Google will continue to be the focus of regulatory authorities, which will not only put pressure on the tech giant itself, but also on the entire adtech market, as the industry’s innovative strength could be inhibited as companies wait to see how the legal and regulatory framework develops.
A particularly explosive topic in this case is the possible split-up of Google, in particular the demand that the company should separate from its adtech division. If this demand is realised, it could mean one of the most far-reaching changes to the digital advertising ecosystem in years. On the one hand, the divestment of Google’s adtech division could promote competition and give other players more room, but on the other hand, such a split would also bring years of adjustment and uncertainty, which could slow down the entire industry.
The parallel proceedings in the USA and Europe make it clear that this is not just a short-term legal dispute, but that the entire digital advertising market will go through a phase of uncertainty until clear decisions are made. The consequences of this process will extend far beyond Google and have a lasting impact on the advertising landscape.
Data protection-compliant information exchange: Data Clean Rooms
Data Clean Rooms (DCRs) are privacy-compliant environments in which companies can securely exchange and analyse data without exposing sensitive user data. Players in the digital advertising market will not be able to avoid dealing with DCRs, whether by using their own solutions or by applying standards such as the Techlab Privacy Enhancing and Interoperability Ready (PAIR) initiative, which aims to promote the use of privacy-enhancing technologies (PETs) in the digital economy and improve interoperability between different data ecosystems.
One thing is certain: innovation and adaptability will be key success factors in shaping the digital advertising world for the future.
The cookie aternative: Identifier
It has been predicted for years, and now the breakthrough seems to be near: standardised identifiers such as Utiq, netID or ID5 are becoming increasingly important, regardless of Google’s cookie decision.
The IAB Techlab is responding to this development with the ID Bridging Standard, which is intended to make the various identifiers compatible. At the same time, the market has recognised that no single solution can guarantee 100% reach – but in practice this is not decisive for most campaigns.
The future of the digital advertising world will be fragmented, with multiple identifiers side by side, and the diversity of identifiers actually seems to be an advantage: instead of becoming financially dependent on a single provider, publishers and advertisers benefit from identifiers coming from different independent organisations. While the cookie world was once part of a single standard, the industry is now moving towards a more dynamic and diverse landscape that offers more flexibility.
Long-established channels with innovative power: big screen and DOOH
Advertising on large screens – whether PTV, ATV or CTV – offers numerous advantages, in particular through independence from 3rd party cookies, and significant developments can also be expected in this area in 2025, whether through new partnerships – such as the one between Virtual Minds and smartclip -, data collaborations or innovative technologies.
In the meantime, digital out-of-home (DOOH) is becoming the fastest growing form of advertising, and the latest digital signage solutions are opening up completely new possibilities thanks to artificial intelligence and advanced analytics. Brands can target their messages to the right audience at the right time, resulting in highly memorable advertising messages that capture consumers’ attention when they are on the move. With these new technologies and possibilities, DOOH is becoming even more versatile than it already is.
Hybrid campaign goals: Brand, performance and something in between
Until now, the advertising world has usually made a clear distinction between branding and performance campaigns, but it is becoming increasingly apparent that these two approaches cannot be viewed in isolation, as they influence each other. Studies and market developments point to the emergence of a third category that sits right between branding and performance.
This hybrid approach is extremely promising as it has the potential to fundamentally change the way campaign objectives are defined and data is utilised. It could enable advertisers to combine both branding and direct performance objectives more effectively, creating new opportunities for a more holistic marketing strategy.
Outlook
The digital advertising landscape in 2025 will be more fragmented, more complex and more diverse, but this also presents a great opportunity: players can set new standards, drive innovative technologies and align their strategies for the future during this phase. The developments of the past year should therefore not only be seen as a challenge, but rather as a pioneer for sustainable growth and transformation in a rapidly changing industry. The coming years will show whether the industry can successfully master the challenges of transformation. One thing is certain, however: innovation and adaptability will be key success factors in shaping the digital advertising world for the future.
