Perspective - The trends shaping business success in 2025 

12 December 2024
 
Carolyn Bollaci

The AdNews end of year Perspectives, looking back at 2024 and forward to next year.

Carolyn Bollaci, Head of Agencies Meta ANZ

While the market continues to be largely unpredictable, one thing remains clear: social media continues to play a central role in people's daily lives. With 20 million active social media users in Australia, social platforms are where audiences spend their time—and where brands need to be

Looking ahead, 2025 will bring a new wave of challenges and opportunities with the advertising industry in Australia. We expect to see the broader economic conditions start to alleviate interest rates helping to ease pressure on Australians, and have a knock on effect for a steady H1 lifting into a strong H2. .

With all of this happening, agencies are at the forefront of these changes, and for those managing multiple clients with varying budgets, staying ahead of social trends is essential to drive results and deliver greater value and outcomes. 

As the end of the year approaches, here are five key social trends agencies should consider to help their clients strengthen customer connections and drive impactful results in 2025. 

1. AI isn’t going anywhere

Artificial Intelligence is here to stay. Both consumers and businesses have recognised its value, and it will reshape the advertising industry.

At Meta, we continue to see strong adoption of our Generative AI ad creative tools, , since the launch from earlier this year to August, more than 15 million ads globally have been created with our AI tools. In response to advertiser demand, we have also introduced two new video AI features - video expansion and image animation to support businesses throughout the ad creative process. 

But it’s not just Generative AI that will reshape the industry. AI will help advertisers make content creation easier, help to analyse campaign performance and power personalisation online. In 2025, expect AI to expand its role further, introducing AI influencers and improved targeting and predictive analytics.

2. Partnering with creators for brand success

The creator economy in Australia is thriving and according to latest research, the global creator economy could reach $480 billion by 2027. 

Creator partnerships are so valuable, because they can work across a number of industries, and it’s magical to see when done right. One partnership that I absolutely love is Christina Aguilera and Latto’s surprise collaboration with Menulog. By pairing a global superstar with a local food delivery service, Menulog captured the attention and sparked excitement, showing how unique collaborations can resonate with both local and wider audiences.

At Meta, we know that finding the right creator to share a brand’s story is key to campaign success. To simplify creator collaboration, Meta’s new tools allow advertisers to feature creator content in Reels collection ads and boost performance with Creator Testimonials. The Partnership Ads Hub in Ads Manager further streamlines managing and setting up creator partnerships.

3. Creative is the new targeting

Creative is now a critical lever for advertisers to drive performance. Attention spans are shorter than ever - Gen Z loses active attention for ads after just 1.3 seconds. To stand out, advertisers must prioritise creative diversity to reach new audiences, combat fatigue, and inspire action.

Diversifying ad formats and concepts can significantly enhance results, with data showing up to a 32% improvement in CPA and a 9% increase in incremental reach when creative is tailored and varied. 

A great example is Australian oral care brand HiSmile. By creating bold, visually distinct ads and collaborating with creators, HiSmile effectively connects with customers and drives engagement. This creative approach helps the brand stand out and sustain performance.

For businesses looking to gain a competitive edge, focusing on creative differentiation is key. By building visually distinct assets, partnering with creators, and personalising messaging for diverse audiences, brands can unlock new opportunities and drive better performance across Meta’s platforms.

4. Expanding opportunities for cross border shopping

According to the annual Meta holiday study, at least 50% of surveyed shoppers reported making a cross-border purchase during the sale period. These purchases were driven not only by price but by the desire for unique brands and higher-quality products. 

Meta’s AI investments aim to enable borderless reach by efficiently matching products with people. Iconic Australian brand Bondi Sands was able to expand its cross-border shopping reach by using Meta’s cross-functional tools to effectively market to international audiences. These tools helped the brand identify and engage global consumers interested in unique, high-quality products. 

Setting up your business for cross-border trade doesn't have to happen all at once. Start with key friction points and gradually build seamless experiences with Meta's global expansion partners.

Staying ahead of social trends and using the right tools is essential for businesses in today’s global marketplace. The key is to start now, experiment with new strategies, and adapt to the evolving digital landscape.

5. Business messaging: The future of brand communication

The move to messaging is one of the most profound shifts emerging in the advertising space. While Australians have not yet fully embraced messaging for business interactions, the global momentum behind this trend is undeniable.  People want to communicate with businesses the same way they communicate with friends and family - and that is via messaging.  With more than 1 billion people connecting with a business account and over 600 million conversations happening every week across our platforms, this trend is gaining momentum. To support this evolution, we’ve introduced Business AIs that can communicate with customers, provide support, and assist with transactions.

For Australian businesses, messaging offers untapped potential to meet customers where they already are. It allows brands to deliver personalised experiences, streamline customer support, and even facilitate sales—all in real time. By adopting these tools, businesses can strengthen relationships, improve customer satisfaction, and ultimately drive growth, positioning themselves ahead of the curve in 2025 and beyond.

Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au

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