OutlookforAdvertising,MarketingandData2025:

TransformationAccelerates

BruceBiegel,SeniorManagingPartnerJanuary23,2025

About

WinterberryGroup

Aspecializedmanagement

consultancythatoffersmorethantwodecadesofexperienceand

deepexpertiseintheintersectingdisciplinesofadvertising,

marketing,data,technology,mediaandcommerce.

WinterberryGrouphelpsbrands,publishers,marketingservice

2

providers,technologydevelopersandinformationcompanies—plusthefinancialinvestorswhosupporttheseorganizations—understandemerginggrowthopportunities,createactionablestrategiesandincreasetheirvalueandglobalimpact.

LookingBackat2024

4

OverthePast18Months,TheMacroEnvironmentHasBeenMostlyNeutralfortheAdMarket—“DoMoreWiththeSame”

Tensionremainedacrossan

uncertaingeo-political

landscape

USeconomyoutperforms

expectations;inflation

moderateswhileGDP

growthexceedsforecasts

Limitedvisibilityinto

marketerbudgetsremains:“domorewiththesame”

Elections,equitymarkets,

USunemploymentrate

endsat4.1%,lowerthan

expected

Interestratecutsbutrates

followthe“higherfor

longer”theme

Betterthan“domorewith

less”butstilllimited

visibilityonannualbudgets

Source:WinterberryGroupSpendanalysis(2025)

5

Advertising&MarketingSpendGrowthRevertingtoHistorical

Norms—PoliticalCycleAdds~$11BB,LowerThanInitialForecasts

USMarketingSpendGrowthBenchmarkedtoGDPGrowth

(2019–2025P)

Incl.Political

Spending

21.7%Forecast

Excl.Political

Spending

9.2%

11.0%

8.3%

3.8%u8.7%

4.8%

6.1%

5.8%

2.5%

-3.8%

2.3%

2.6%

2.5%

1.9%

-2.2%

-3.4%

2019202020212022202320242025P

USAdvertising/MarketingSpendGrowthUSGDPGrowthBenchmark:2xUSGDPGrowth

Source:WinterberryGroupSpendanalysis(2025)

6

Review2024:DigitalChannelsContinuedtoTakeShare,OfflineRebound,InLineWithJan2024Forecasts

CAGRs

(2021–2024):

USOnlineandOfflineMarketingSpend

($BB,2022–2025P)

+0.7%

+12.8%

$551.9

$497.4

$438.9

$181.4

$193.4

$187.2

$360.9

$316.0

$251.8

$479.4

$191.0

$286.0

7.9%

2021202220232024

OnlineMarketingSpendOfflineMarketingSpend

Review2024:PoliticalCycleSpursGrowthinLinear/DM,In-PersonDrivesRetail,Experiential/EventReturnstoPre-CovidLevels

USOfflineMarketingSpend

($BB,2024)

TOTAL:$191.0BB

+12.0%

+2.5%

ExperientialandSponsorship

TradeShowandEvent

$24.8

+2.2%

$20.7

TerrestrialRadio

$10.9

-13.4%

Newspaper(Print)

+11.0%

$5.3

ShopperMarketing(Offline)

$19.9

-7.4%

Magazine(Print)

$5.8

+2.3%

Out-of-Home(Traditional)

+5.3%

$7.5

DirectMail

$37.3

+2.6%

LinearTV

$58.9

YoY

Growth

+8.9%

Source:WinterberryGroupSpendanalysis(2025)

7

Review2024:DirectMailVolumeRecoversAfter2023Pullback

DirectMailVolumes

(Thousands,2021-2024)

+1.0%

72,191,81972,913,418

+1.6%

-14.5%

63,324,184

62,308,230

20212022

20232024

Source:WinterberryGroup(2025)

8

Review2024:InvestmentContinuedtoFlowIntoCTVandRetailMedia;PaidSocial/SearchaBigWinnerinB2CandB2B

USOnlineMarketingSpend

($BB,2024)

TOTAL:$360.9BB

+14.5%

+9.9%

Search

$123.6

DigitalOut-of-Home

+3.7%

$4.5

EngagementMarketing

$4.9

+1.1%

L____MobileGaming

Influencer

$6.8

+16.0%

+14.2%

+6.1%

DigitalAudio$7.6

Social

$82.7

+19.6%

+7.1%

$8.5

OtherDigital

$9.7

YoY

Growth

CTV

$28.8

+19.0%

Video

$30.5

Display

$53.5

+17.0%

+7.7%

9

Source:WinterberryGroupSpendanalysis(2025)

EngagementMarketingincludesEmailandSMS/Push

OtherDigitalincludesaffiliatenetworkfeesandleadgen

Source:WinterberryGroupSpendanalysis(2025)

10

Review2024:GrowthDrivenby“DataLayer”InvestmentstoSupportFirst-PartySolutions,Commerce,CTVandPolitics

USMarketingData,DataServicesandDataInfrastructureSpend

($BB,2024)

TOTAL:$25.0BB

Data:includesthird-partydataandidentityspend

+9.2%

Data

$8.5

DataServices

$7.6

+10.7%

+10.2%

+10.0%

Data

$9.0

Infrastructure

DataInfrastructure:includesdatamanagementandcollaborationplatforms

DataServices:includesidentityresolution

analytics,measurement,attributionanddatalayerintegration

YoY

Growth

Agencyconsolidationhighlightstheyear,PrivateEquity(PE)backed

platformspursuedadd-onacquisitionsand1in4VCinvestmentswereinAIorAI-relatedcompanies

Source:Reuters(2025);Bain(2024);Adweek(2025);Canaccord(2025)

11

2024MarketingM&ATrends:AfteraSlow2023,Consolidation,CommerceandAIDrivingtheMarket

In2024,globalM&Adealvaluereached$3.2trillion,markinga10%increasefromaslower2023

2024NumberofTransactionsbySegment

2024DollarVolumeofTransactionsbyBuyer

Venture

Capital

34%

Strategic

Buyers

31%

PrivateEquity35%

Agency&

MarketingServices,395

Digital

Advertising,

165

MarketingTech,812

Digital

Media,450

E-Commerce,238

2024M&AThemes:BuyerValuationsandSellerExpectationStillAligning;PositiveMomentumAcceleratesInto2025

12

MacroTrends:

What’sDrivingtheMarket

14

Trend:MarketStartstheMovefromTesttoAgenticTransformation

Trend

AgenticAIadoptionwentfromtesttoinitial

rollout,acceleratingthrough2024,withclient

servicesandcreativeapplicationsleadingthefirst

waveoftransformation

Impact

MarketersleanintoGenAI,reducingtimetocontent,seeking

productivitygainsandhyper-personalization.Adoptionshifts

fromrepetitivetaskautomationto“reasoning-based”

insightsthatcombinecontentandaudiencedata.

Productivitygainsandpersonalizationdriveadoption,thoughconcernsaroundaccuracy,privacy,andsecuritypersist.

15

Trend:Content'sAIParadox—SpendIncreasingwithAutomation?

Trend

DespitewidespreadAIadoptionautomatingcontent

creation,globalspendcontinuestogrowas

organizationsreallocateratherthanreducebudgets.

Focusshiftsfromefficiencytoincreasedoutputwhile

maintainingqualityandbrandstandards

Impact

AItoolstransformHOWcontentbudgetsarespentrather

thanreducingWHATisspent.Organizationsincreasing

adoptionofAI—keyareasareinfrastructure,talentupskilling,

andnewproductionworkflowstoincreasevelocityand

volumeofcontentcreated.

StillaLargeOpportunity:IsGenAIReallyChangingContentSpend?

GlobalContentProductionSpend

($BB,2023–2028E)

$151.5

10.4%

$114.3

$105.2

$92.2

2023

20242025E2028E

16

Source:WinterberryGroupSpendanalysis(2025)

17

Trend:TV'sTippingPoint—CTVMovesBeyondLinearExtensiontoTakeCenterStage

Trend

Withthe“sportsmoat”breached,CTVspending

beginstoapproachparitywithLinearTV.Shift

acceleratesasCTV’sroleevolvesfromextensiontoa

blendofbrandandperformance(especiallyinlocal).

Addressablelinearfades,replacedbylocalCTV.

Impact

CTVspendingprojectedtosurpassLinearby2027,forcing

fundamentalshiftinvideoplanningapproaches.Expectthe

measurementlandscapetocontinuetoevolvetowardsmulti-

currencyreportingasindustryadaptstostreaming-firstreality.

Trend:MarketResearch'sAIMoment—FromPanelstoPredictiveInsights

Trend

MarketresearchtransformationacceleratesasAIand

syntheticdatareachmainstreamadoption.“Tech-

enabled”researchsolutionsforecasttogrow13.3%

through2027to$63.5B.

Impact

Marketersseekingfaster,continuousinsightscombine

traditionalmethodologies,digitalpanelsandAI/ML-

poweredanalytics.Whiletech-enabledsolutionstakeshare,

transitiontakesabalancedapproach—movetoahybridmodel

morethanreplacement.

Source:WinterberryGroup(2025)

18

19

Trend:B2B'sDigitalFastTrack—SocialandSearchDriveAcceleratedTransformation

Trend

WhileB2BdigitaltransformationtrailsB2Cbythree-to-five

years,B2Bmarketingspendisgrowingfasterthanthe

totalmarketasbudgetscontinuetoexpandandshift

digitally.Socialandsearchemergeasprimarychannels,

reshapingtraditionalB2Bmarketingapproaches.

Impact

Whilein-personeventsandsponsorshipstilldominate,they

havebecomehybrid.Furtherdigitaladoptionisnow

challengingB2Bteamstore-structure,withincreasedtalent

demandsindigitalpaidmediaacomplementto

ABM/DemandGenapproaches—allleadingtoamore

integratedcustomerjourneystrategy.

20

Trend:CreatorEconomy2.0—BeyondInfluencetoMeasurableImpact

Trend

Creators,(thosewhocreatecontent)moveforward

asbrandsseekengagement/conversionand

influencers,builtonaudienceservereach.The

marketincreasinglyvaluesmulti-platformcreators

whocandrivebothengagementandmeasurable

outcomes.

Impact

Brand-creatorrelationshipstransformfromtransactional

sponsorshipstostrategiccommercepartnerships.Platforms

enhancecreatormarketplaceswithimproved

measurementandcommercecapabilitiesasinvestment

followsprovenbusinessimpact.

21

Trend:MarketingIsStillLearningtoSpeakCFO—IsthatAlignmentforEveryone?

Trend

Asmarketingmeasurementevolves,enterprise

organizationsincreasinglyadoptMMMtodemonstrate

ROIandtiemarketingactivitiesdirectlytosalesoutcomes.

However,asignificantcapabilitygapemergesbetween

enterpriseandmid-marketorganizations.

Impact

WhileenterprisemarketersleverageMMMtocommunicate

valuetotheC-suite,mid-marketorganizationsstruggletofind

right-sizedmeasurementsolutions.Thisscaleissuecreates

opportunityfornewtoolsandapproachesthatcan

democratizesophisticatedmeasurementcapabilities

beyondtheFortune500.

Trend:ESGMeetsReality—GlobalStandardsFaceMacroResistance

Trend

WhileglobalbrandsmaintainESGcommitments,particularlyaroundenvironmentalinitiatives,growing

populistmovementschallengetraditionalESG

frameworks.State-levelregulationsrestrictDEIprograms

intheUS,whileEuropeanpoliticalshiftsthreatenlong-

standingenvironmentalandsocialpolicies.

Impact

Organizationsnavigateincreasinglycomplexlandscapewhere

globalESGmeetsnationalresistance.Environmentalinitiatives,

includingAIenergyconsumptionconcerns,movedtotheparking

lot,ascompaniesadapttogovernmentactionsandconsumer

sentiment.

Toberevisitedin2026(maybe…)

22

23

Trend:GlobalExpansionofDataPrivacyRegulations—AdoptaPETToday!

Trend

Asglobalprivacyregulationsexpand,organizationsshiftfocusfromcompliancetocapabilitybuilding throughPrivacyEnhancingTechnologies(PETs).

Thesesolutionsenabledatautilitywhilemaintaining

privacy,becomingcentraltomarketingtechnology

strategies.

Impact

Tomaintaindatautilitywhileensuringsecurityandcompliance,

marketers,complianceandITteamsareincreasinginvestment

inPETSincludingencryption,differentialprivacy,solutionsthat

reducethemovementofdataandtheadoptionofdata

collaborationplatforms(cleanrooms).

Spotlight:

ConnectedCommerce

24

TheEvolutionof“ConnectedCommerce”—ItsIn-StoreandOnline

WhatisConnectedCommerce?

Theseamlessintegrationofonlineandofflineretailchannelstocreateaunifiedshoppingexperienceforconsumersacrossphysicalanddigitaltouchpoints,

allowingforpersonalizedexperiencesandconsistentengagement,enhancingcustomerconversionandloyalty

WhyDoesitMatter?

“Themostuniqueandcrucialpartis

connectingthedigitalandphysical.

Whilecustomerscanshopanytime,

anywhere,wemustprovideaconsistentexperienceforthem.It'sessentialto

maintainconsistencyacrossallshelvesfortheshopper”

—SVP,CommerceAgency

“it'saboutmeetingtheshopperwherethey'reat.Thejourneycanstartandendanywhereandcanhavemultipletouchpoints,reflectingwheretheshopperisatanygivenmoment.Thejourneyisnotasstraightforwardasitusedtobe—

seeinganadandmakingapurchase.Today,theypricecheckin-store,readreviews,comparewithotherretailersandthenmaketheirfinaldecision”

—CEO,RetailMediaAgency

25

Source:WinterberryGroup“EvolutionofConnectedCommerce”WhitePaper(2025)

Source:WinterberryGroupSpendanalysis(2025)

26

2025SpendingonConnectedCommerceForecasttoReach$112.6BB,Growingata18.7%CAGRSince2021DrivenbyRMNExpansion

ConnectedCommerceSpendingonMedia,CreativeandContent

(2021-2025E,US$BB)

$112.6

+18.7%

$95.5

$97.2

$82.3

$80.2

$65.8

$56.7

$69.0

$56.4

$48.2

$8.5$9.4$11.2$13.3$15.4

20212022202320242025E

MediaCreativeandContent

Source:WinterberryGroupSpendanalysis(2025)

27

ConnectedCommerceisMuchBroaderthanJustRetailMedia,withOveraThirdofSpendingOccurringOutsideRMNS

ConnectedCommerceMediaSpending,RetailMediaNetwork(RMN)vs.Non-RMN

(2024,US$BB)

$27.9

(33.8%)

$54.7

(66.2%)

ConnectedCommerceMedia,CreativeandContentSpending,RetailMediaNetwork(RMN)vs.Non-RMN

(2024,US$BB)

$38.5

(40.1%)

$57.5

(59.9%)

RMN

Non-RMN

RMN

Non-RMN

Trend:TheOtherCommerceStory—B2BJoinstheParty

Trend

Beyondretailmediaheadlines,B2Bcommerce

reachesmassivescaleat$2.4trillionin2024,

growing17%YoY.TheexplosionofB2Bmarketplaces

from75to500+infiveyearssignalsafundamental

shiftinbusinesspurchasing.

Impact

WhileB2Bplatformsnowcapture$350Binsales,thetransition

provesmorechallengingthanB2C'sevolution.Nearly40%of

buyersreportnegativeexperiencesasB2C-likeexpectations

clashwithB2B'sinherentcomplexity.

Sources:Statista(2024),Emarketer(2024),DigitalCommerce360(2024)

28

Spotlight:

TheEvolvingTechnologyStack

29

TheMadTechSolutionsEcosystem:

ThreeInterrelatedLayers:Data,IntelligenceandActivation

Dataisingested,

consolidated,and

standardizedforanalysis

andactivation

Dataisleveragedtoderiveinsightsandinformdecisioning relatedusecases

Applicationsand

platformsareusedto

communicateacross

outboundandinbound

channels

Source:WinterberryGroup

30

WhatWeThink:The“DataLayer”WillContinuetoBeBuiltonHybridSolutions-NotaSinglePlatform

ThinkingAheadtotheNext1-3Years,WhichoftheFollowingBestDescribesHowYourOrganizationWill

ApproachBuildingitsDataSolutionsStacktoManageandLeverageData?

(%ofrespondents,2024)

Continuetoleveragebest-in-classsolutionsTransitionfrombest-in-classsolutionstoahybridapproach

Continuetoleverageahybridapproach

Continuetoleverageasingularcloudor

digitalexperienceplatform

Transitionfrombest-in-classsolutions toasingularcloudordigitalexperienceplatformTransitionfromasingularcloudordigitalexperienceplatformtobest-in-classsolutions

Transitionfromasingularcloudor

digitalexperienceplatformtoahybridapproach

26%

20%

20%

11%

10%

9%

4%

Source:WinterberryGroupDataLayerWhitePaperSurveyN=200

31

TechnologyandOrganizationalSilosThatSeparateContentfromAudienceDataWillStarttoCollapse—aVictimofGenAI

DoesYourOrganizationLeverageGenerativeAIforDataAnalysisorContent

Production?

(%ofrespondents,2024)

1%

19%

26%

54%

Yes,weleveragegenerativeAIforcontentproductionYes,weleveragegenerativeAIfordataanalysis

Yes,weleveragegenerativeAIforbothdataanalysisandcontentproductionNo,wedonotleveragegenerativeAIfordataanalysisorcontentproduction

Source:WinterberryGroupDataLayerWhitePaperSurveyN=200

32

OneBraintoRuleThemAll:AstheDataLayerisUnified,Lookfor“Intelligence”toSeparateFromChannelActivation

Source:WinterberryGroup

33

34

AddedImpact:Re-OrganizationalAlignment—TheImpactofGAIonMarketingOperations

Trend

Marketingoperationsemergesascentral

orchestratorofprocess,technology,anddataacross

theorganization.AsAIadoptionaccelerates,these

teamsbecomecriticalbridgesbetweenmarketing,

sales,compliance,andIT.

Impact

Previouslyviewedastacticalsupport,marketing

operationstransformsintoastrategicfunctionmanaging

AIdeployment,techstackconsolidation,andcross-

functionalintegration.Theroleevolvesfromorganizational

"parkingspot"tocriticalcareerpathascompaniesseekleaders

whocandrivemarketingtechnologytransformation.

Outlook2025:

FollowtheMoney

35

Outlook2025:USEconomyandB2BAdvertisingandMarketingSpendPoisedtoBeatExpectationsin2025

EconomicIndicators

?USGDPgrowthprojectedat2.5%for2025

?InflationexpectedtopersistaboveFedtargetat~3%

?Consumerspendingremainsresilient,

supportedbywagegrowthandstableemployment

Otherfactorstoconsider:

?Tariffsimpactoncross-bordercommerceandinflation?

?Interestrates–arewestillin“higherforlonger”?

?HowwillGenAIimpactlabormarketdynamics,particularlyinservicessector?

?Amorefavorable(lessregulated)M&A

environmentdrivesstockmarketvaluations

USAdvertisingandMarketingSpending

($BB,2021–2025P)

YearSpend($BB)YoYGrowth(%)

2021$438.9

9.2%

2022$479.4

3.7%

2023$497.4

11.0%

2024$551.9

2025P$585.66.1%

?ExecutiveActions

Source:WinterberryGroupAnalysis(2025),ConferenceBoardEconomic(2024),GoldmanSachs(2024)

36

Outlook2025:AToughYearAheadforOfflineWithoutPoliticalSpend;ExperientialPoisedforContinuedGrowth

USOfflineMarketingSpend

($BB,2025P)

TOTAL:$180.5BB

+8.0%

+2.3%

TradeShowandEvent

$25.3

ExperientialandSponsorship

$22.4

-5.1%

TerrestrialRadio

+4.2%

$10.3

ShopperMarketing(Offline)

$20.7

-13.0%

Newspaper(Print)

$4.6

-7.3%

Magazine(Print)

-5.5%

$5.4

-1.5%

Out-of-Home(Traditional)

$7.4

DirectMail

$36.9

-1.1%

YoY

Growth

-19.3%

LinearTV

37

$47.5

Source:WinterberryGroupSpendanalysis(2025)

Outlook2025:StillGoodtoBeInDigitalasMacroMe