Hold cos to falter and the rise of transmedia: six predictions for the year ahead
2025: The Advertising Landscape
1. The Downfall of Holding Companies
Ad agency holding companies face an uncertain future. Independent agencies and big tech giants like Google and Meta are eroding their market share. This trend will continue in 2025, with holding companies unable to stem the bleeding.
2. The Streaming Revolution
The streaming wars intensify as cable companies shed their legacy assets. Major media conglomerates like Disney and Fox are expected to follow WarnerBros Discovery's lead and separate their traditional TV and streaming divisions.
3. Big Tech Faces the Law
Antitrust scrutiny of big tech companies ramps up in 2025. Google's recent legal woes are a harbinger of more lawsuits to come. Expect Apple and Nvidia to come under fire for their app store and semiconductor dominance, respectively.
4. Transmedia Takes Center Stage
Video games emerge as the dominant entertainment medium. This realization sparks a surge in "transmedia" content, where intellectual property flows seamlessly across different platforms. Characters from video games become movie stars, and vice versa.
5. DEI Fades into the Shadows
Layoffs targeting diversity, equity, and inclusion initiatives show that corporations' commitment to these ideals may be waning. Cynicism prevails as former DEI employees question the authenticity of corporate social responsibility efforts.
6. The Rise of AI in Marketing
While generalized AI remains elusive, practical applications of artificial intelligence proliferate in marketing. LLMs enhance market research, and AI tools revolutionize illustration and video production.
7. Predictions Revisited
Looking back at last year's predictions, some proved true while others continue to unfold.
- "The Metaverse is Dead" - The term has indeed faded into obscurity.
- "Hybrid Work Here to Stay" - Remote and hybrid work models prevail.
- "Antitrust Lawsuits Continue" - Big tech remains under legal scrutiny.
- "Media Conglomerates Split" - Streaming divisions separate from traditional assets.
- "Foreign Shows Ascend" - International productions gain popularity due to novel storylines and lower production costs.
"Where there's chaos, there's also opportunity," says Wes Morton. As the advertising landscape undergoes seismic shifts, disruptors will emerge. The year 2025 promises a volatile and transformative chapter in the industry's history.