Media is a Strategic Driver of Business Growth, Dentsu’s Latest Research Reveals
What is the significance of media in today’s society? Do we see marketing as a change agent for the business? As the media landscape continues to transform, recent research from Dentsu indicates that media has evolved into a strategic driver of business growth.
So, what does this mean for Chief Marketing Officers (CMOs)? Enter the concept of the “Perceptive CMOs”- a term coined by Dentsu to highlight those who are increasingly aligned with consumers’ vision of the future. These forward-thinking leaders are eager to invest in innovative initiatives that set them apart from competitors and prepare for a future where brand-customer relationships will undergo significant changes.
Want to discover the trends that will influence the media landscape during these transformative times? Explore our summary of Dentsu’s valuable insights:
- Advertising innovation – crucial for the economy. According to Dentsu’s latest report, the global advertising market is forecast to grow by 6.8% year-over-year to close 2024 at $772.4 billion. Ad spend growth is forecast to continue at a slower 5.9% in 2025, yet still outpace the global economy by 2.7 percentage points, meaning that ad spend grows twice as fast as the economy. Algorithmically enabled ad spend is estimated to reach 59.5% of total ad spend in 2024 and 79.0% in 2027. According to the Dentsu CMO Navigator research, 59% of CMOs estimate that, in five years’ time, at least half of their companies’ revenues will come from products, services, or businesses that don’t yet exist. Marketing executives in telecommunications, pharmaceuticals, and retail are expecting an even greater share of revenue disrupted by new offerings.
- Media – a strategic pillar for business growth. The Dentsu CMO Navigator reveals that for an overwhelming majority (88%) of CMOs, media will play a central role in their roadmaps, and the latest forecasts suggest that planning is about to undergo a profound transformation as we enter a new era for media – the algorithmic era. Initially focused on the North American market, the report marks the expansion of the survey, which was administered by B2B International in August 2024 to a global scope, covering 13 countries and reaching as many as 1,900+ marketing leaders. What do we need to keep in mind? According to the data, online video advertising is projected to increase by 8.0% in 2025. After overtaking broadcast television in Australia and the United Kingdom in 2023, it is now forecast to do the same in India by 2027 and in the United States by 2028. For the global CMOs, short-form content and social commerce will be key battlegrounds.
- Digital captures an increasing market share. In 2025, digital ad spend is expected to increase by 9.2% (8.8% three-year CAGR to 2027) to capture 62.7% of the total advertising market. Online video advertising is expected to increase by 8.0% in 2025 (7.1% three-year CAGR to 2027). A point that is particularly impressive? Digital formats are expanding and are now a standalone solution in some markets. Buying costs are going up as advertisers compete for attention – a trend that may intensify as CMOs intend to boost investments in short-form content on platforms like TikTok, Instagram or similar. Investment priorities show that CMOs understand the importance of fit-for-platform content and of having the content production capabilities to fit their media strategies. Programmatic advertising is projected to grow by 11.1% in 2025 to account for more than 70% of digital ad spend, with a steady pace expected in the following years (10.9% three-year CAGR to 2027).
- Specifics of the algorithmic era. As Dentsu experts explain, for decades, advertising has been dominated by the broadcast era, when the 30-second TV spot reigned supreme to build brands. Then, the precision era made the most of the booming AdTech ecosystem to make performance media centerstage. We are now entering a new era, when algorithms can help advertising create and capture more brand demand. Dentsu forecast that this algorithm ubiquity will rapidly expand to media investments, with 79.0% of ad spend being algorithm-driven by 2027. For brands, it means that algorithm availability (i.e., easy to see) will become as crucial as physical availability (i.e., easy to buy) and mental availability (i.e., easy to recall). Yet, if everybody uses the same algorithms in the same way, all audience experiences will become average and no one will stand out. This is why media craft will become increasingly pivotal to get the right outcomes from algorithms by avoiding pattern reinforcement, exploiting curiosity, leveraging interests and intent, and beating best practices through constant experimentation – a radical departure from traditional media planning.
- The Perceptive CMO and customer centricity. The Dentsu research shows that customer centricity is the present and future aspiration of marketing leaders. A new breed of global CMOs has emerged: the perceptive CMOs – marketers who are more successful than their peers by calibrating their strategies at the intersection where consumer wants and business needs overlap. Perceptive CMOs are more likely to see media that connects with culture as a way to garner consumer attention and drive growth. They are more aligned with consumers when it comes to how our lives will look 5 to 10 years from now.
- Attention – vital for maximizing media potential. CMOs see attention as a very important metric to determine the efficacy of media-driven initiatives. In fact, 2 in 10 consider it to be critical. CMOs are also excited about the new tech and content opportunities emerging in media as it evolves beyond the delivery of communications and into a key growth driver. CMOs concur with consumers that the customer experiences of the future will be informed by real-time, contextual personalization. Marketers know customers will expect offers and promotions that reflect things like the entertainment content an individual customer is watching, or their real time location. Now, they just need to prepare their organizations to seize the opportunity.
As the Dentsu research concludes, the algorithmic era is a unique opportunity to make media transformation what it should have always been: a true media elevation, where media is fully addressable, shoppable, and accountable.
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