The paid media landscape is rapidly evolving as we look towards 2025. Building on significant changes in 2024—marked by the proliferation of AI-driven automation, increased privacy measures, and economic uncertainty—2025 promises further transformation, exasperated by political and technological disruption.
This report offers insights into key 2024 trends and 2025 predictions, highlighting opportunities for healthcare marketers to stay ahead of the curve, with a specific focus on digital advertising. As we anticipate AI’s continued influence, regulatory advancements, and shifting consumer behaviors, you must remain agile and informed to navigate an increasingly complex environment.
2024 redefined the paid media landscape with advancements in AI, stricter privacy regulations, and the consolidation of major platforms, transforming how marketers connect with audiences. As we reflect on the year that was, key takeaways include:
The threat of a US TikTok ban forced advertisers to pivot, redirecting budgets to platforms like Meta and YouTube. With Gen Z loyal to TikTok, brands feared losing access to this highly engaged audience. Still, the platform’s ad revenue growth slowed from 19% to 6% between March and May.
After delaying third-party cookie deprecation, Google effectively walked back the promise entirely. With 77% of Alphabet’s revenue derived from Google Ads, the tech giant maintains its ad-targeting dominance. However, the shift sparked renewed regulatory scrutiny in Europe and criticism of unfair practices in the US.
Antitrust suits against Google and Meta intensified in 2024. Meta, facing mounting privacy challenges and potential forced divestitures, saw a decline in ad effectiveness. Advertisers diversified spending in anticipation of possible shifts. Microsoft Ads was the big winner, growing search revenue 19%.
With the average budget falling 15% amid inflation fears, advertisers turned to AI-driven ad automation and cheaper, high-impact formats like short-form video and performance-driven shopping ads.
The European Union rolled out even stricter privacy rules in 2024, further limiting advertisers' ability to track users across sites. This hit cross-border advertisers hard, pushing them to rely more on first-party data, which ironically gave large platforms like Google and Meta an advantage.
Looking to 2025, we expect paid media to be shaped by three primary forces: AI, regulatory pressures, and the upcoming election’s impact on economic and privacy policies. Our predictions for 2025 include:
Advertising's AI evolution centers on creative optimization and precise targeting, offering unprecedented efficiency. However, the challenge lies in balancing machine-learning capabilities with robust oversight to maintain brand integrity and ethical standards in an increasingly automated landscape. Expect innovation.
Escalating privacy regulations will force healthcare marketers to accelerate first-party data strategies. Motivated by the prospect of revenue loss, Google and Meta will innovate compliant targeting methods, reshaping the digital advertising landscape with privacy-focused approaches.
Short-form video advertising's emergence will incorporate interactive, playable elements, transforming consumer engagement. TikTok, Instagram Reels, and others will enable healthcare brands to convert viewer attention into immediate action, creating a more seamless and direct marketing experience.
Expect in-app shopping experiences to advance with Meta and Google, creating frictionless paths from impression to conversion. Healthcare brands will leverage this trend to drive service-based engagement, enabling direct appointment bookings and patient resource transactions within advertising platforms.
Decentralized platforms will emerge as alternatives to Big Tech, signaling shifts in consumer preference and, as a result, advertising. Marketers must adapt, exploring these new channels to engage niche patient communities and expand beyond traditional advertising ecosystems.
2025 promises to be a dynamic year. Keep these considerations in mind during planning to ensure your strategies are built to endure:
AI-driven optimization in advertising is indispensable but demands rigorous human oversight. Marketers must establish robust audit processes to ensure AI recommendations align with brand goals, balancing technological efficiency with strategic human insight.
Healthcare brands must diversify beyond Meta and Google, investing in emerging and programmatic platforms. This strategy offers greater control and flexibility, mitigating risks from potential regulatory changes and reducing dependence on traditional advertising giants.
With privacy regulations limiting personal data access, integrate contextual advertising based on content engagement into your media mix. Testing contextual strategies across niche sites and streaming services will enhance audience alignment while safeguarding privacy.
Ensure your marketing technology stack can adapt to evolving privacy laws. A flexible, resilient Martech stack will allow quick pivots to meet new regulations, enabling you to manage user consent effectively and stay compliant across all touchpoints.
Collaborate with privacy-oriented data partners specializing in aggregated insights. These partnerships will enable compliant audience segmentation, preserving targeting accuracy even as traditional data sources become restricted.
Make informed decisions and allocate resources strategically with a clear understanding of past trends and future forecasts. With clarity on where we’re headed, you can optimize investments and stay competitive in a fluctuating market.
| Google Search (CPC) | Meta (CPM) | Programmatic (CPM) | Spotify (CPM) | Nextdoor (CPM) | |
|---|---|---|---|---|---|
| 2020 | $2.79 | $4.72 | $5.03 | $25.00 | |
| 2021 | $2.62 | $12.91 | $5.13 | $20.00 | |
| 2022 | $2.64 | $14.20 | $5.52 | $22.50 | $20.00 |
| 2023 | $2.29 | $7.14 | $6.17 | $22.50 | $19.00 |
| 2024 | $2.07 | $7.08 | $6.35 | $22.50 | $22.00 |
| 2025 Forecast | $1.95 | $8.89 | $6.74 | $21.75 | $22.33 |
| Compiled from Fathom aggregated data, advertising partner data, and third-party sourced insights. Forecast generated with a linear progression model and should be considered directional. | |||||
Try it yourself. Gather platform data or ask your agency partner for annualized costs. How do they compare to our actuals? As a result, what should you expect in 2025?
| Google Search (CPC) | Meta (CPM) | Programmatic (CPM) | Spotify (CPM) | Nextdoor (CPM) | |
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We’re the digital marketing agency for healthcare. We combine a wealth of industry experience with deep digital expertise to deliver performance-driven marketing that positions healthcare brands to grow both reputation and revenue.
To learn why more top hospitals trust Fathom, visit fathomdelivers.com.
Claire Wirtanen is Fathom’s Director of Paid Media. She leads a team of experts renowned for crafting tailored digital advertising strategies that address clients’ unique market and service line needs. With a passion for uncovering the deep insights that unlock innovative strategies, Claire specializes in developing patient acquisition campaigns that increase awareness, boost preference, and drive appointment volume.