The global advertising industry has experienced substantial shifts in the past 48 hours, highlighting powerful currents in technology adoption, channel focus, and ongoing regulatory pressures.
Generative AI is solidifying its grip on advertising workflows. Recent industry surveys confirm that 90 percent of advertising professionals are now impacted by generative AI. About 38 percent report piloting or testing AI-powered applications while 23 percent say the technology has fundamentally transformed their operations. Crucially, 86 percent of marketers either use or plan to use Generative AI specifically for video advertising and projections suggest that by next year, about 40 percent of all video ad content will be AI-generated. This acceleration is driven by AI’s promise of speed, reduced production costs, and highly personalized creative, especially in connected TV campaigns. Connected TV remains the lead channel for marketing dollars, with one in three agency respondents indicating increased spending in this space, followed closely by mobile and retail media formats. Mobile continues to be the most trusted for audience targeting, with over half of digital marketers reporting the greatest targeting efficiency on mobile devices.
Emerging retail media partnerships and new product launches are expanding the digital reach of in-store brands and retailers. For example, 7-Eleven’s Gulp Media Network is quickly deploying in-store audio advertising in partnership with Qsic, targeting 12,000 stores in the US by month’s end. Similarly, grocer H-E-B has introduced self-service retail media buying platforms enabling brands to purchase ads and monitor campaign performance directly, with ambitions to reach over eight million households weekly.
On the supply side, programmatic curation is gaining traction, as advertisers increasingly demand more relevant inventory and transparency. Cross-publisher bundling and ethical use of first-party data are becoming standard as privacy regulations tighten.
Challenges persist. Promo industry sales dropped 3.2 percent in the second quarter of 2025, marking back-to-back declines for the first time since early 2020. Distributors attribute this to tariff volatility, especially on Chinese and Canadian goods, and lingering client hesitation. Yet confidence is rebounding, with projections for improved spending in the latter half of the year.
Regulatory pressure, especially around transparency and pharmaceutical advertising, remains high. Legislation is being weighed that may limit or delay how and when certain products can be promoted, indicating that compliance remains a moving target.
Compared to prior months, adoption of AI and self-service technology is accelerating, while cautious optimism is replacing market hesitancy. Leaders are responding by doubling down on data-driven targeting and investing in technology to navigate volatility and regulatory complexity.
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI.