The digital media landscape is evolving at a breakneck pace, and if one thing is clear, it’s that staying open—to innovation, competition, and consumer needs—is critical for long-term success. The year kicked off at CES where unsurprisingly, AI has dominated discussions, but the broader challenges facing our industry demand equal attention. Last week’s IAB ALM was packed with insightful discussions that have effectively shaped the agenda for 2025. Here’s what Canada’s marketers, agencies, ad tech companies, and publishers need to know:
The Open Web is Essential for Growth
Industry consolidation is a growing threat, and history shows that isolation stifles innovation. A shrinking mid-market in digital advertising means fewer opportunities for new entrants, less competition, and, ultimately, fewer choices for advertisers. The Canadian ad tech ecosystem must continue supporting open, interoperable solutions that foster competition.
Actionable Takeaway: Invest in open web strategies and partnerships. Publishers should advocate for an ad-supported internet that allows for sustainable growth outside of walled gardens.
Consumer Privacy: Regulation and Perception
New privacy laws are reshaping the industry, and Canadian businesses must be proactive in compliance. Consumers recognize the value of personalized advertising, but they also demand better transparency and control over their data. Recent studies show that privacy concerns are often more about criminal threats (e.g., data breaches) than targeted advertising.
Actionable Takeaway: Canadian brands and publishers should prioritize clear, user-friendly privacy policies and consumer education. With potential national privacy legislation on the horizon, staying ahead of regulatory shifts will be crucial. In the meantime, compliance with Law 25 in Quebec remains a non-option and solutions like IAB Canada’s TCF enables this.
Retail and Commerce Media’s Rise
Retail media is booming, with spending expected to exceed 50 billion in the U.S. alone. This is no longer just about retailers—any company with first-party data, from airlines to financial services, is now part of the commerce media revolution.
Actionable Takeaway: Canadian advertisers should explore new partnerships in commerce media and demand standardized measurement frameworks. Local brands must prepare for this shift by leveraging their own data assets.
The Creator Economy’s Growing Influence
Content creators are driving cultural trends and shaping consumer behavior more than ever. With social commerce and influencer marketing becoming key revenue streams, Canadian brands should rethink traditional advertising strategies.
Actionable Takeaway: Marketers need to integrate creator partnerships into their media plans, ensuring authenticity and engagement with their target audiences.
AI: Opportunity and Oversight
AI is already transforming creative development, media buying, and measurement. However, ethical considerations around AI-generated content, misinformation, and fair compensation for publishers are top concerns.
Actionable Takeaway: Canadian media stakeholders should push for clear guidelines on AI-generated content, advocate for fair data usage policies, and experiment with AI tools to enhance efficiency without compromising integrity.
Regulatory Pressures and Industry Advocacy
From privacy regulations to potential changes in tax policy affecting ad deductibility, government intervention in digital advertising is increasing. Canadian industry leaders must be proactive in shaping policies that impact digital advertising.
Actionable Takeaway: Agencies and trade organizations must engage in policy discussions, ensuring a fair regulatory landscape that protects both consumers and businesses.
The Future is in Collaboration
Innovation thrives in an open and competitive marketplace. Canada’s digital media industry must prioritize interoperability, responsible data practices, and cross-industry collaboration to ensure long-term sustainability.
By staying open—to new technologies, regulatory shifts, and industry collaboration—Canada’s digital media stakeholders can navigate these challenges while fostering innovation and growth.
Get involved and join our councils and committees to be part of building the bright future of digital advertising in Canada. Reach out to [email protected].