6-1 Digital Advertising Predictions Blog

By Jarrett Bregler

Farman Media. (2023). Online Marketing on the Tablet [Stock Photo]. Wayback Machine.

Digital Advertising Trends for the Next Five Years

Introduction

In the world of digital advertising, changes are occurring constantly. Being informed of technology and trends that will be the most impactful for target audience engagement and business growth are paramount. With an openness to these trends and the quality of being adaptable, companies can be assured in their efforts to remain connected to their customers. Diligence in technology and trend monitoring adoption is also an effective strategy in cultivating and maintaining competitive advantage. Through an investment in this approach, a brand will demonstrate to its consumers a staunch commitment to their best interests, and it will thrive as a strong and established market presence in its industry.  

Three Digital Advertising Technology and Trend Predictions

Over the next five years, there will be several compelling evolutions with technology and trends that will revolutionize digital advertising. These encompass artificial intelligence (AI) hyper-personalization, customer experience (CX) digital immersive experiences, and location-based marketing with augmented reality and virtual reality for conversion solidification. The intended goal of these trends is to enhance the digital advertising experience for companies and their consumers. Much of this encompasses building on existing successes and finetuning them for more engagement and immersive activity for boosted sales attainment. Overall, the focus will be even more customer driven as the administrative operations that have commanded so much time and effort will be a thing of the past and the future will involve a more integrated personalized approach that will make conversions more seamless than ever.  

MacroHype Media. (2024). Robot Coming Out of the Screen [Stock Photo]. Creative Commons.

Artificial Intelligence Hyper-Personalization

While artificial intelligence (AI) is all the rage today, much more of its potential will be tapped into in the next five years to extend digital advertising. Industry experts assert that this will occur through the trend of AI hyper-personalization which will use artificial intelligence to create “…highly tailored and individual experiences for prospective customers by analyzing real time data about their behavior and preferences” (Tully, 2024). Regardless of the channel with which they are engaged, the brand that they are interacting with will be able to learn their preferences through continuous analysis from machine learning algorithms that constantly adapt based on the elicitation of new data. It will focus on their customer interaction data which can be gleaned “…from website browsing behavior or from social media engagement” (Davenport, 2023, p. 15). There will also be a benefit that advanced digital advertising through omnichannel personalization with seamless integration “…across multiple touchpoints like websites, apps, emails, and social media will provide consistency of personalized experiences regardless of where the customer interacts with the brand” (Obermaier, 2025). This will involve dynamic creative optimization in relation to ad creatives. They will be generated in relation to individualized customer service data and optimized with visuals and content that is highly customized.

An augmenting benefit includes a prioritization of voice search integration. Tailored ads will be voice-based and in alignment with individualization relative to preferences and user queries. All ads will additionally entail contextual relevance and will be generated based on real time factors to ensure highly relevant content. “This will include location, browsing activity, and customer mood” (Tully, 2024). Finally, this approach will also encompass AI-powered predictions with highly advanced algorithms that will expediently conduct customer analysis for the goal of predicting future needs and behaviors. Overall, this will enhance the proactive execution and delivery of personalized content and offers for engagement and conversions.    

Tellerman Media. (2023). Get Hands on Vision Pro [Stock Photo]. Creative Commons.

Customer Experience Digital Immersive Experiences

As with hyper-personalization, there will be a trend of continued growth with customer experience (CX) in relation to immersive experiences that will enhance digital advertising. “In the next five years, immersive CX will become increasingly prevalent utilizing technologies such as augmented reality (AR) and virtual reality (VR)” (Keith, 2025). The intent of its implementation is to elicit a customer experience that will be lifelike across channels. Highly personalized and interactive, immersive CX “…will blur the lines between the physical and virtual worlds” (Boykin, 2025). Through the utilization of these advanced technologies, customers will have the opportunity to engage with the brand and its products in an immersive way that can occur across channels. To augment these efforts, there will also be 3D product exploration. This approach will improve digital advertising through the engagement of customers on a far more personal level.

A pertinent channel that will incorporate this trend is through brand websites. The immersive experience will ensure that those brands that sell apparel can have customers try on the product virtually in a specialized customer fitting room. For brands with products for the home, customers will be able to click on a product and immediately “…receive personalized product demonstrations in real time” (Keith, 2025). There will also be the utilization of AI-driven avatars that will represent virtual guides throughout the website and also across channels in order to ensure responsive customer service. Moreover, for those customers that want to partake in more product integration activities, there will be the availability of 3D product exploration that will “…enhance digital advertising by providing highly realistic, product interactivity that will allow customers to explore product features and accompanying gadgets” (Boykin, 2025). Its utilization will further engagement and boost conversion rates through a near-real world product experience. In addition, these benefits of customer engagement will be augmented with product customization capacities. Customers will be able to enjoy the ability “…to design and personalize products themselves in a virtual environment on the company’s website” (Keith, 2025). The tangible qualities of experiential CX and interactivity will further amplify engagement. Combined, all of these strategies will “…lead to a deeper understanding of the product’s value proposition” (Keith, 2025). This will foster greater confidence in purchasing decisions and ultimately increase conversions. This coordinated effort will additionally elicit competitive advantage through brand and product differentiation.

Pham Media. (2025). Online Shopping Future Trends [Stock Photo]. TMA Solutions.

Location-Based Reality Media Marketing

With advancements in reach, engagement, and immersive experiences, it’s important to include location-based reality media marketing in the latter. While the first two trends are more synonymous with reach and engagement, location-based reality media marketing will supplement those trends with a correlation to amplified conversions. This trend is linked with conversions as “it will allow businesses to deliver relevant, timely content and offers tailored to a consumer’s geographic location, enhancing engagement and conversion rates” (Kimball, 2024). It will entail advanced technologies beyond the intent of luring the customer away from the competitor. It will encompass more personalization and relevance in interactivity to procure sales.

 This trend will involve the implementation of hyper-localized augmented reality (AR) experiences with virtual reality (VR) support. It will enhance digital advertising in several ways. First, it will augment geofencing with geo-conquesting to increase store engagement through mobile marketing and include invitations to AR scavenger hunts within the store. This will take the prospective customer beyond browsing to “…interfacing with AR markers placed in specific locations that will facilitate product interaction” (Gupta & Bansal, 2022, p. 3). This will encourage them to engage with the brand and be more enticed to purchase products. Once in the store, it will include the provision of VR tours with accompanying VR headsets that will guide consumers throughout the store and initiate product interactivity that will align with their product preferences. This will be able to be achieved as the device will support “…real-time research data that will generate the preferences of the customer with which the device is engaged” (Gupta & Bansal, 2022, p. 4). It will also intuitively produce a sales offer with one of the top products that the customer interacts with the longest to solidify a purchase. All of this targeted engagement will focus more on the customer experience rather than the current practice of a location redirection. This will thereby elicit more sales, and the precision of the personalized experience will yield more social proof which will further augment engagement with prospective customers in the utilization of this conversion strategy.

Conclusion

While much of these efforts to entice and engage consumers are in existence, the technology is newer and has not yet attained the depth of its possibilities in ensuring that engagement leads to more immediate conversions. The trends of artificial intelligence hyper-personalization, customer experience digital immersive experience, and location-based marketing with AR and VR supplementation share themes indicative of more immediate sales success. They encompass a more immersive prioritization of personalization to expedite business growth and revenue attainment. As long as there is a balance between strategy execution and the adherence to data privacy and consumer protections, they should collectively enhance and evolve the domain of digital advertising.

I hope you enjoyed learning how digital advertising will continue to improve in the future and aspire to keep yourself informed as an active participant in this exciting future.