AI, consolidation to impact ad business in 2025

AI (ARTIFICIAL INTELLIGENCE) WILL BE A GAME CHANGER IN ADVERTISING

- Shuchi Bansal

Adman Sandeep Goyal, chairman, Rediffusion, is not known to mince words about the state of the advertising and media industry and often receives flak for his honest take on the issues plaguing the sector. The former founder-chairman of the Dentsu India JV is spot on about trends on the creative and media side of the business. For 2025 he predicts that AI (artificial intelligence) will be a game changer in advertising, money will continue to go into performance marketing, and agency mergers will lead to blood-letting as they are a euphemism for cost savings for the networks.

"AI is a reality and it is at our doorstep. Ad agencies will have to either learn how to use AI or it will trample their businesses," Goyal said. This requires serious investments in re-training the creative cadres, acquiring new machines and software. "Typically, agencies wait for business to happen before they invest which will be a big mistake," Goyal said. AI can bring the sheen back to the creative business as it offers greater control over output, improves productivity and saves time and money, he added.