At IAB ALM last week, IAB’s VP, Measurement, Addressability & Data Center Angelina Eng sat with Randy Browning, President of Night Market. In what was perhaps one of the most insightful tracks on day one, this fireside kicked off a stream of invaluable discussion about measurement, shoppable ads and the new order for brand marketing.
Here are the key trends and challenges CMOs will need to navigate in 2025 in a rapidly shifting media environment.
1. AI-Driven Retail Media Optimization
- AI is essential for accurate media investment decisions.
- Predictive and real-time analytics are shifting how agencies and brands invest in retail media.
- CMOs must address data gaps and ensure accurate measurement of ROI.
2. Bridging Data Gaps in Measurement
- Traditional MMM (Marketing Mix Modeling) provides a holistic view but lacks real-time insights.
- Retail media is tactical and changes daily; CMOs need continuous optimization strategies.
- AI-powered platforms (like Neon) help standardize incremental revenue tracking.
3. The Shift Toward a Pervasive Commerce Model
- Consumers prioritize seamless purchasing experiences over traditional brand engagement.
- CMOs must integrate physical and digital experiences fluidly (owned, leased, and contextual environments).
- Retail media plays a critical role in delivering personalized and frictionless shopping experiences.
4. Next-Generation Search and Consumer Behavior
- Natural language search will redefine how consumers find and buy products.
- CMOs must prepare for AI-driven, personalized shopping experiences without traditional search structures.
- Strategies need to focus on making brands part of the evolving search ecosystem.
5. The Growing Role of CMOs in Driving Revenue
- Marketing investments will be directly linked to predicted revenue outcomes.
- CMOs will take on a more significant role in corporate revenue strategies.
- Agencies must evolve to demonstrate direct business impact through data-driven insights.
6. Leadership in Times of Rapid Change
- Stability is no longer the norm; adaptability is key.
- Leaders must prioritize hiring talent that understands emerging trends and wants to shape the future.
- Companies need proactive team members who challenge norms and push for innovation.
7. Future of Commerce and Agency Value
- Predictive revenue models will reshape how businesses invest in marketing.
- CMOs will have increased influence at the board level, surpassing traditional sales leadership in some cases.
- Agencies must shift from being service providers to strategic revenue-driving partners.