Outlook: How AI transformed advertising and what to look for in 2025
Omar Tawakol
Issue: November/December 2024

Outlook: How AI transformed advertising and what to look for in 2025

In 2024, artificial intelligence profoundly changed the way advertisers approach their craft. No longer just a tool for speeding up processes or automating tasks, AI became a central player in shaping how brands connect with audiences. This transformation wasn’t just about new technology - it was about rethinking how advertisements fit into the broader media ecosystem. The rise of AI-driven advertising solutions fundamentally altered strategies, sparking both excitement and skepticism across the industry.

The rise of generative AI in advertising

Generative AI, led by major players like Google and Meta, was one of the most significant developments of the year. By automating creative content production, it offered advertisers the ability to generate large volumes of personalized ads quickly. While this technology introduced new possibilities, it also prompted concerns about the loss of human creativity and authenticity. Brands began to realize that while AI could produce content at scale, the challenge was ensuring these ads truly resonated with consumers. Many in the industry grappled with finding the balance between efficiency and authenticity, but there were certainly bright spots and examples where the tool was a boon for the creative process.

Fragmented audiences and the shift to seamless integration

A major focus in 2024 was how advertisers could address the fragmentation of audiences across multiple platforms. As more people turned to ad-free subscription services and employed ad blockers, traditional advertising methods lost their impact. In response, the industry began exploring ways to make advertisements less interruptive and more integrated into the content itself. 
 
AI-powered solutions like in-scene media and virtual product placement emerged as promising alternatives. Rembrand became a leader in utilizing these solutions. By embedding products directly into the videos and programs consumers already loved, advertisers found a way to reach those elusive audiences who had become harder to engage. This approach allowed brands to maintain visibility without disrupting the viewer experience, a crucial shift as audience behavior continues to evolve.

Ethics, privacy and trust in AI-driven advertising

Beyond the technology itself, 2024 was also a year of reflection on the ethics of AI in advertising. As AI systems became more capable of collecting and analyzing consumer data, concerns about privacy and trust grew. Consumers wanted more transparency from brands about how their data was being used and how AI was shaping the content they saw. This need for ethical AI practices pushed the industry to adopt a more careful approach, prioritizing responsible data use and maintaining trust. The tension between personalization and privacy is expected to remain a key issue as AI continues to advance.

From generative AI to contextual integration in 2025

Looking ahead to 2025, the emphasis is likely to shift from purely creative applications of generative AI to more contextual and seamless ad integrations. Advertisers are starting to recognize that it’s not just about creating more content — it’s about making sure that content fits naturally within the broader viewing experience. 
 
By embedding products directly into existing content, brands can maintain visibility even as traditional ad formats become less effective. As this technology advances, it will offer advertisers more flexibility and control over how their products are integrated, allowing for more sophisticated and contextually relevant placements. This approach ensures that ads aren’t just seen but also feel like an organic part of the viewing experience.
 
Consumers are increasingly resistant to ads that feel intrusive or disconnected from the content they’re engaging with, and AI will play a critical role in helping advertisers craft experiences that feel less like ads and more like part of the story. The ability to embed brands naturally into content, without disrupting the viewer’s flow, will be a key trend in the year ahead.

Building trust and ethical AI practices in 2025

As AI becomes more integrated into advertising, another challenge for 2025 will be ensuring that the technology is used responsibly. The line between tailored experiences and manipulation is thin, and advertisers will need to walk this line carefully. Building trust with consumers by using AI in transparent and ethical ways will be essential to maintaining long-term success. This means not only focusing on what the technology can do but also considering the broader impact it has on consumer perceptions and trust.

Navigating the future of AI in advertising

Ultimately, AI has brought about a revolution in how advertising is created and delivered. It is both enabling faster ideation and creation, inspiring new directions and even making it possible for advertisers to leverage new channels that reach audiences who had previously become unreachable. Of course, there are more complex questions about the role of technology in shaping consumer behavior, and these will be addressed in subsequent months and years. The trends set in 2024 have laid the groundwork for more nuanced and thoughtful uses of AI. As advertisers and brands move forward into 2025, the focus will likely be on continuing to find innovative ways to integrate AI while keeping consumer trust and engagement at the forefront of their strategies. The industry’s ability to adapt and respond to these evolving dynamics will determine how successful AI-powered advertising will be in the years to come.
 
Omar Tawakol is the CEO of Rembrand (www.rembrand.com). Rembrand pioneered the use of Regenerative Fusion as a solution leveraging its proprietary spatially-aware AI to enable in-scene media. In-scene media is a non-interruptive, unskippable, unblockable and scalable solution for bringing brands into high-quality creator content in a programmatic fashion.