22 NOV 2024

CTV's rising influence in 2025: Growth, innovation, and the quest for brand safety

Integral Ad Science’s latest "2025 Industry Pulse Report" highlights the key trends, challenges, and opportunities that will define 2025.

22 NOV 2024

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Integral Ad Science (IAS) has released its "2025 Industry Pulse Report", offering a detailed look at how digital media will evolve over the coming year. The report highlighted that digital video remains a strong focus for the advertising industry, with 43% of media experts prioritizing it for 2025. This trend is being driven by a continued shift in advertising spend from traditional TV to digital platforms.

According to the report, 73% of respondents believe the move from linear TV to connected TV (CTV) will persist. This shift has led to innovative ad formats, such as playable and shoppable ads, which are designed to engage audiences in more interactive ways. However, digital video is not without challenges. As inventory expands, concerns over brand safety and ad fraud are growing. An overwhelming 81% of experts are worried about the potential for ad fraud, highlighting the need for advanced media quality assurance in this rapidly expanding sector.

Brand safety continues to be a top priority for media professionals, with nearly half (49%) of them identifying it as their primary media quality concern. One of the major worries is the placement of ads alongside risky or fake content. Deepfakes, in particular, pose a growing threat, with 31% of experts highlighting them as a significant challenge. Ad fraud is another persistent issue, with 22% of media experts viewing it as a top concern. The rise of "made-for-advertising (MFA) sites", which accounted for 13% of programmatic ad spend in Q2 2024, represents a new wave of challenges. AI tools are expected to make it easier to create such low-quality sites, prompting 68% of respondents to stress the need for better detection and avoidance mechanisms to protect campaign effectiveness.

Social media remains at the forefront of digital marketing, with 61% of industry professionals identifying it as a top priority. However, it is also one of the most challenging environments due to risks associated with AI-generated content, such as deepfakes. Over half of the media experts, 53%, consider social media the most vulnerable platform for brand safety, with potential risks amplified by the rise of AI-driven threats. Despite these concerns, social media continues to innovate, particularly in the realm of social shopping. A significant 78% of respondents believe that traffic from social shopping will increase in 2025, while 70% see influencer marketing playing a more prominent role. These trends underscore the dual challenge and opportunity presented by social platforms as they evolve.

AI is poised to become a game-changer in digital media. It is expected to play a crucial role in ensuring that ads are shown in safe environments, with 71% of experts agreeing that AI-driven measurement will help secure brand safety in digital video. The technology is also expected to address some of the most pressing challenges in the industry, such as detecting deepfakes and other forms of misinformation. By leveraging advanced machine learning, advertisers can classify and filter content more accurately, minimizing the risks associated with AI-generated material. The use of AI is not only about safeguarding brand reputation but also about enhancing targeting capabilities and delivering more relevant ads.

As privacy regulations become more stringent, contextual targeting is gaining prominence. It allows advertisers to deliver relevant content without infringing on user privacy, which is crucial for maintaining compliance. According to the report, 58% of experts view contextual targeting as essential for achieving campaign goals, particularly on retail media networks. This trend is not limited to traditional digital environments but is also relevant for emerging media platforms. Contextual targeting is seen as a solution to avoid intrusive advertising, especially in immersive environments like gaming. A substantial 73% of respondents emphasized the importance of non-disruptive ad placements in games, ensuring that brand messaging aligns seamlessly with the user experience.

To navigate the challenges of a rapidly evolving digital landscape, third-party measurement is becoming indispensable. A large majority, 76%, of media experts agree that independent tools are crucial for protecting brands against risks like deepfakes and ad fraud. These platforms provide essential data that can guide advertisers in making informed decisions, enhancing the quality and safety of digital media campaigns. Measurement and optimization are also seen as vital for understanding consumer engagement and ad effectiveness. This is especially true for emerging formats, where the lack of established benchmarks makes third-party validation even more critical.

The 2025 landscape will see continued innovation across emerging media formats, including gaming, virtual reality (VR), and augmented reality (AR). These platforms present unique opportunities, but they also come with specific challenges that require careful navigation. In gaming, for example, understanding how to integrate ads without disrupting the experience is paramount. Seventy-three percent of media experts emphasize the importance of media quality measurement in this space. The push for innovation is equally strong in AR and VR, where brand suitability and ad viewability remain top concerns. As these formats gain traction, ensuring that ads are relevant and non-intrusive will be key to maintaining consumer trust.

As the digital media industry grapples with challenges around privacy, inclusivity, and sustainability, responsible media investments are becoming a priority. 70% of media experts plan to focus on making ad campaigns more inclusive, aiming to reach diverse audiences while respecting privacy. Additionally, there is a growing emphasis on minimizing the environmental impact of digital advertising, with 68% of respondents highlighting the need to track and reduce ad-related carbon footprints. These trends signal a shift towards more responsible and ethical media practices, driven by consumer expectations and regulatory pressures.

The report from IAS paints a picture of a digital media landscape in flux. AI, privacy, and media quality are at the heart of this transformation, as the industry seeks to balance innovation with responsibility. With the rise of interactive and immersive media, advertisers and publishers will need to adopt advanced measurement tools and strategies to navigate the complexities of this evolving ecosystem. As challenges like ad fraud, brand safety, and consumer trust continue to shape the industry, the ability to leverage cutting-edge technology while maintaining ethical standards will be critical for success in the years to come.