In the ever-evolving world of advertising, Milena Traikovich stands out as a guiding force, helping businesses navigate the complexities of lead generation and campaign optimization. With an extensive background in analytics and performance strategy, she offers deep insights into how the industry is preparing for upcoming challenges and opportunities. As the 2025 IAB NewFronts approaches, Traikovich shares her expertise on the pivot towards flexibility, the role of AI, and the importance of strategic partnerships in a volatile market.
What are the key themes and focus points for the 2025 IAB NewFronts?
The NewFronts 2025 is poised to be a significant juncture in advertising, primarily focusing on flexibility, outcomes, and partnerships. We’re in a time where uncertainty looms large, so the industry is zeroing in on versatile solutions that can adapt quickly to changing circumstances. There’s an emphasis on AI, which is revolutionizing how we reach audiences by enhancing content targeting with nuanced insights. The event will also highlight the growing need for clear performance outcomes, particularly when economic conditions make every dollar count.
How do advertisers need to prepare for economic uncertainties during the NewFronts 2025?
In preparing for economic uncertainties, advertisers should dust off their contingency plans, much like during the Covid era, and adopt a mindset that considers worst-case, best-case, and everything in between scenarios. Being ready to pivot quickly is crucial, which means collaborating closely with partners who can offer flexible packages and media plans. These partnerships will be vital in ensuring that advertisers can react swiftly to market shifts without sacrificing strategic goals.
Can you elaborate on how flexibility is becoming a premium in the advertising industry?
Flexibility has transitioned from a beneficial attribute to a necessity in advertising. Economic pressures, such as softened consumer demand and tariff-induced disruptions, demand that brands and their partners stay nimble. Advertisers are increasingly looking for last-minute opportunities and partners who can accommodate rapid changes in strategy or budget. This need for adaptability is reshaping how deals are structured and executed, encouraging a culture of readiness to move fast.
What strategies should advertisers consider for worst-case, best-case, and in-between scenarios?
Advertisers should focus on scenario planning, which involves preparing varied strategies that cover worst-case, best-case, and in-between circumstances. This means having diverse plans that can be deployed quickly, such as flexible media buys or back-pocket campaigns. It’s important for brands to maintain an open dialogue with partners to explore all possible avenues and ensure that all parties are aligned and ready to execute swiftly when changes occur.
How are current economic conditions impacting ad spend, especially with tariffs and consumer demand?
Current economic conditions are undeniably affecting ad spend. With tariffs impacting costs and a dip in consumer demand, many advertisers are finding themselves recalibrating budgets. This is particularly noticeable in sectors like auto and small businesses, where shipping delays and cost hikes are already prevalent. As a result, there’s a projection that we might see these impacts more intensely in the latter half of the year, necessitating strategic cuts and reallocations in marketing budgets.
Why is there a strong appetite for future-facing solutions despite industry volatility?
In times of volatility, innovation becomes critical for survival, which explains the strong appetite for future-facing solutions. Advertisers are eager to embrace technologies and strategies that offer last-minute opportunities and adaptable frameworks. This forward-thinking approach allows them to remain competitive and relevant, even when the economy presents challenges. The ability to leverage new tools and tactics gives brands a distinct advantage in maintaining consumer engagement and, ultimately, sustaining growth.
How is AI expected to influence content and contextual marketing at this year’s NewFronts?
AI is set to significantly transform content and contextual marketing by elevating how brands connect with their audiences. Traditionally, targeting relied heavily on keywords, but AI now brings a deeper understanding of context and sentiment. This sophisticated targeting ability allows marketers to better align their messages with consumer sentiments, creating more meaningful engagements. As AI continues to mature, we can expect it to open up new pathways for personalizing content in ways that truly resonate with audiences.
What does incrementality mean in the context of reaching audiences, and why is it important now?
Incrementality in advertising refers to understanding how additional advertising efforts can expand reach and drive actions that wouldn’t happen otherwise. It’s particularly vital now as advertisers aim to stretch budgets further, ensuring every incremental spend generates significant returns. By focusing on reaching hard-to-access segments and optimizing across channels, brands can maximize their investments even during economic uncertainty, ensuring that budget cuts don’t compromise effectiveness.
Why are performance outcomes more crucial during economic uncertainty?
During times of economic uncertainty, performance outcomes take center stage as brands need tangible proof of return on investment. With tighter budgets and increased scrutiny on spending, brands prioritize metrics that align closely with business objectives. This focus ensures that marketing efforts directly contribute to desired results, such as customer acquisition or retention, rather than being broad or unfocused endeavors.
How is IAB supporting news publishers facing challenges in ad spend?
IAB is actively working to support news publishers by shedding light on the importance of maintaining ad spend in this crucial category. With a drastic reduction in ad budgets allocated to news segments, IAB emphasizes the value of supporting these outlets not just for the sake of democracy but also for sound business outcomes. By facilitating discussions and providing platforms for publishers to share their narratives, IAB aims to reengage brands with the vital role that news plays in connecting with dedicated audience segments.
What impact does the decline in ad spend in news categories have on both democracy and business outcomes?
The decline in ad spend in news categories severely impacts both democracy and business outcomes. With fewer brands investing in news media, there’s a risk of eroding a critical pillar of societal information dissemination. Additionally, advertisers miss out on engaging with audiences who are deeply committed to consuming news, losing potential for brand trust and loyalty. Thus, supporting news publications becomes a strategic move to uphold democratic values while nurturing business growth.
Considering the shift to digital video, what trends are shaping the future of video ad spend?
The shift to digital video is reshaping ad spend trends, driving a move from traditional linear TV to more engaging and flexible digital formats. The industry’s focus is increasingly on aligning ad spend with viewer habits, particularly among younger audiences who favor digital platforms over traditional TV. As digital video continues to capture a larger share of the market, we see an expansion in creative options, interactivity, and targeted approaches, reshaping how brands capture audience attention and engagement.
Why might some marketers still prioritize traditional media despite the rise of digital options?
Some marketers may still prioritize traditional media because it offers predictability and clarity in execution. Traditional TV campaigns provide straightforward metrics and scheduling, making it appealing for brands that favor certainty over the complex dynamics of digital. However, this does not diminish the potential of digital media, which offers unparalleled opportunities for creativity and two-way engagement. Balancing both traditional and digital media allows brands to strategically diversify their outreach.
What areas are expected to see budget cuts due to tariff-related pressures?
Budget cuts due to tariff-related pressures are expected to be most pronounced in traditional media and social channels. As tariffs continue to strain financial planning, advertisers are likely to streamline their investments, prioritizing areas like connected TV (CTV) and digital video, which promise greater returns on engagement and flexibility. By reallocating budgets to platforms that align with consumer behaviors, brands aim to sustain their presence and effectiveness in the market, even under financial constraints.
How are brands adapting to financial constraints in their ad budget planning?
Brands are adapting to financial constraints by pivoting towards performance-based channels and negotiating for increased flexibility with partners. IAB’s research indicates that many are fine-tuning their strategies to focus on channels that deliver measurable impact. This shift involves scrutinizing historical data to optimize ad spend, renegotiating contracts for better terms, and exploring innovative formats that offer cost-effective engagement, ensuring that reduced budgets still drive growth.
Could you explain the rise of commerce media and its significance in the current landscape?
Commerce media has gained prominence as brands leverage first-party data to create direct pathways from content consumption to transactions. Unlike traditional retail media, commerce media spans various sectors like banking and travel, offering vast opportunities for monetization. It bridges the gap between consumer engagement and purchase intent, delivering a performance-driven experience through shoppable content and direct marketing solutions that capitalize on data insights.
In what ways is shoppable content facilitating a full-funnel, performance-driven experience?
Shoppable content is revolutionizing the consumer journey by blending discovery and purchase within a seamless experience. By integrating commerce capabilities directly into content, brands can guide consumers from awareness to transaction without disrupting their interaction. This approach enhances conversion rates and extends the funnel to capture intent at every stage, creating continuous engagement loops that benefit both brands and consumers.
How is creator content changing the consumer journey from awareness to purchase?
Creator content reshapes the consumer journey by leveraging the trust and authenticity that creators bring to brand narratives. This content can captivate audiences at any point in the funnel, from sparking initial interest to reinforcing loyalty and driving purchases. Creators’ authentic connections with their followers facilitate organic endorsements, making the path to purchase feel natural and more compelling, thereby strengthening brand-consumer relationships.
What advice do you have for marketers in terms of planning and collaboration with partners?
For marketers, the key lies in adopting a mindset that’s both cautious and cooperative. Plan like a pessimist to account for all possible scenarios, ensuring you’re insulated against potential pitfalls. At the same time, act like a partner, fostering meaningful collaborations with those willing to remain agile and flexible. This dual approach will help you not only survive but thrive through economic uncertainties by leveraging collective expertise and resources.
