Shifting strategies in digital advertising are transforming how companies connect with customers. By 2025, businesses will need to adopt innovative approaches and forge strategic partnerships to thrive.
For startups and smaller companies wanting to make their mark in a noisy space, the challenge is going to be finding smart ways of navigating these changes to build momentum and consumer engagement.
Advertising Statistics
The United States is anticipated to lead in global ad spend at a total of $425.90 billion in 2024 and is the largest single digital advertising market in the world. Currently, around 73 percent of advertising sales in the United States is directed towards digital advertising and it is anticipated to grow at a 7.3 percent average year-over-year.
Use AI to Make Ads Interactive
Artificial intelligence is rapidly advancing in content creation, making advertising more intelligent and effective. It’s easier to personalize engagements, connect with consumers, and create content that resonates. Programmatic advertising platforms are already using AI to enhance hyper-targeting that allows them to talk to the right people at the right time on the right platforms.
AI’s ubiquity and cost-efficiency are democratizing the process for smaller companies and startups, allowing them to stretch smaller budgets through improved targeting accuracy and reduced advertising spend. Benefitting from AI, however, means taking the time to understand it. Larger organizations have access to people with AI expertise so they can use it from the outset. Startups need to dive into the technology so they can optimize their usage to stay ahead of the competition.
AI also opens the door for enhanced ads.
There will be an increase in AI-powered programmatic ads blended with rich media to provide consumers with interactive ads or shoppable videos that engage with audiences in real time. It’s instant gratification advertising that startups can use to create immersive experiences that transcend traditional advertising approaches.
With AI, startups can understand their audiences better. AI can analyze customer data and glean rich insights into audience likes, needs, wants and desires — insights that startups can use to create ads that resonate with markets and create customer stickiness.
Implement Data Analytics to Dominate the Digital Landscape
In 2023, Google, Facebook and Amazon collectively held over 60 percent of the total digital advertising revenue in the United States, with Google leading at 26.8 percent, followed by Facebook at 21.1 percent and Amazon at 12.5 percent.
Combined, the advertising revenues generated by these three giants amounted to 1.49 percent of the country’s gross domestic product, highlighting their substantial influence on both the market and the economy.
The big tech companies currently dominate the digital advertising market, which presents a challenge for emerging media brands or traditional brands pivoting to digital wanting to create their own space within this competitive and saturated market.
The concentration of power has created a digital ecosystem where intense competition and algorithms favoring larger brands with bigger budgets drives up advertising costs.
This structure, however, creates opportunities for nimble companies to exploit niche markets and alternative channels. Startups can find traction through strategic approaches such as hyper-local targeting, community-based marketing and platform-specific content optimization.
Rather than competing head-on with the larger players, companies can use data analytics to identify under-served market segments and develop highly targeted campaigns designed to maximize their return on ad spend. The key to thriving lies in understanding platform-specific algorithms, agile marketing strategies and building strong organic presence.
Take Advantage of Traditional Media’s Built-In Credibility
Traditional media remains vital for startups aiming to build credibility and trust. Television advertising excels in reaching broad audiences, driving awareness and fostering recall. In fact, 42 percent of adults view TV ads as the most trustworthy form of media, reflecting its association with established and regulated networks, according to Thinkbox.
Similarly, print media, particularly reputable magazines and newspapers, reinforce trust and authority. Of all adults surveyed, 44 percent still read newspapers both in print and digitally, and 87 percent have read at least one magazine in the last six months.
For startups, combining television with digital strategies creates a well-rounded approach — taking advantage of both TV’s credibility and digital’s immediacy. This dual-channel strategy effectively builds lasting brand awareness and positions new players as credible and reliable.
Engage Users With Short-Form Video Content
The dominance of short-form video content, combined with the rapid growth of streaming platforms, creates a unique opportunity for startups to engage audiences.
One of the biggest challenges is capturing and retaining attention. Short-form video platforms such as TikTok and YouTube Shorts reward content that hooks viewers within the first few seconds. A compelling start — whether it’s a bold statement, an intriguing question or a striking visual — can draw users in. To maintain their attention, videos should have a clear focus and quick pacing, which you can achieve through quick cuts and simple storytelling.
Today’s audiences gravitate toward content that feels genuine and relatable. Startups can foster this connection by sharing behind-the-scenes glimpses, user testimonials or honest portrayals of their products or services. Collaborating with influencers, particularly micro-influencers, can further enhance this sense of authenticity. These creators often have strong, trusted relationships with their niche audiences.
Startups should test different approaches and iterate based on what resonates most with their audience. Organic content that performs well can be amplified with paid strategies, creating a feedback loop where learnings from organic reach informs paid efforts and vice versa. Interactive content, such as polls, challenges or campaigns that encourage user-generated videos, can foster a sense of community while extending the brand’s reach.
By creating opportunities for users to participate in campaigns, startups can build loyalty and generate organic momentum.
