Key marketing and branding trends for 2025 – AI, sustainability, smart cities and more

In our recent article on brand challenges for 2024, we explored how businesses were grappling with evolving consumer expectations, technological changes, and the growing demand for sustainability. Now in 2025, these themes not only persist but evolve into opportunities for brands to connect more deeply, boldly innovate, and deliver meaningful change. Brands should see this as an exciting chance to pivot and evolve to match their audiences’ expectations.

Here’s a closer look at the trends that will define marketing and branding in 2025 – and how to embrace them considering the challenges we’ve already seen.

Personalisation – AI as your brand’s secret weapon

2024 underscored the importance of understanding your audience, but 2025 will take it a step further. AI-powered personalisation will allow brands to engage customers as individuals rather than segments, offering tailored content and experiences at scale. You’d be surprised (or perhaps not) at how much content you consume today has been touched by AI at some point in its journey. The key is transparency: as we discussed previously, data privacy concerns loom large, and being open about how you use customer data and AI is critical to earning trust.

Take Spotify as an example. Their AI-driven playlists, like Discover Weekly, have revolutionised how users interact with music. By analysing listening habits, skip rates, and even the time of day users engage, Spotify curates a personalised listening experience that feels almost human. This hyper-personal approach has transformed passive listeners into brand advocates, building deep customer loyalty.

In 2025, expect more brands to follow suit, using AI not just for recommendation engines but for dynamic content delivery, hyper-relevant marketing campaigns, and even personalised brand experiences.

According to McKinsey, 72% of organisations are now using AI in at least one business function, and 54% of businesses are using AI to create personalised consumer experiences (Marketing AI Institute). A percentage that will only increase further in 2025.

For brands aiming to make AI personalisation work however, it’s important not to lose a human touch. Showing customers that their data is being used responsibly, and for their benefit, can turn cautious consumers into lifelong supporters.

Immersive technologies – from novelty to necessity

We’ve seen a surge in brands using VR and AR to captivate audiences, but in 2025 these technologies will move beyond gimmicks. They’ll become integral tools for storytelling and customer interaction. Whether it’s a virtual product demo or an AR-powered retail experience, brands that use immersive tech to enhance utility and engagement will lead the pack.

Consider IKEA’s AR app, IKEA Place, enabling customers to visualise furniture in their own homes. Through augmented reality IKEA transforms decision-making into an engaging, confidence-boosting experience. Taking the guesswork out of an essential customer interaction. This seamless blend of usefulness and innovation keeps users engaged while building trust in the brand’s products.

These technologies won’t just revolutionise customer experiences, they’ll transform how brands train and empower their teams. From VR simulations for customer service training to AR-assisted on-the-job guidance, immersive tools can accelerate skill development and boost employee confidence. By equipping staff with hands-on, immersive training, brands can create a workforce that’s not just skilled but deeply aligned with their ethos and equipped to deliver enriched customer interactions.

Looking ahead, we can expect more brands to adopt AR and VR to create memorable brand experiences that transcend traditional customer journeys. But the key to standing out in 2025 will be merging immersive tech with authentic storytelling, using it to bring a brand’s narrative to life while delivering interactions of genuine value to the customer.

With these technologies, the possibilities are vast, but their success hinges on careful integration.

Sustainability as a competitive advantage

In 2025, sustainability will no longer be an optional extra but an essential part of a brand’s DNA. Consumers are holding businesses to task, expecting them to match their eco-conscious promises with action. Ethical sourcing, reducing carbon footprints, adopting circular economy principles – the brands that integrate sustainability authentically into their operations will win both hearts and market share.

Equally, search engines and regulators are paying attention too. Sustainability credentials might soon influence search rankings, tax breaks, or even legal obligations. This shift means businesses can no longer rely on greenwashing to get them through. Transparency and credibility are essential to build brand trust.

For brands that get this right, they’ll be rewarded by building deeper connections with conscious consumers, creating a meaningful point of differentiation, and future-proofing against the changing legislative and consumer landscape.

Other key marketing and branding trends in 2025

Navigating the voice-first world

According to a Yaguara, by the end of 2024, 8.4 billion voice assistants are expected to be in use worldwide, nearly doubling from 4.2 billion in 2020.

With voice search and voice-activated devices becoming ubiquitous, adapting your content for voice is no longer a nice-to-have – it’s a must. Consider how your brand sounds, as well as how it looks. Interactive voice ads and voice-first content strategies can help you connect with audiences in more personal, immediate ways.

Build trust from the ground up with user-generated content

Consumers are increasingly wary of overly polished brand narratives, turning instead to peer recommendations and authentic experiences. Encouraging and curating user-generated content not only builds trust but also transforms your customers into ambassadors – a particularly effective strategy for overcoming concerns around credibility and connection. If you’d like to explore more, we’ve delved deeper into user-generated content with community building, and the role of social media in search.

Capturing attention quickly with short-form video

The rise of short-form video, driven by platforms like TikTok and Instagram Reels, remains unstoppable. But in 2025, it’s not just about chasing trends; it’s about using this format strategically to tell your brand story concisely and effectively. Ensure every second is meaningful, aligned with your messaging, and optimised for mobile viewing. Again, we have another article that explores the use of short-form video in greater detail if you’d like to find out more.

Inclusivity and diversity – more than a marketing strategy

In 2024, we highlighted the increasing consumer scrutiny of brands’ values. In 2025, inclusivity and diversity will play an even bigger role in shaping purchasing decisions. Your messaging, campaigns, and even your product design should authentically reflect the diversity of your audience – not as a trend, but as a commitment to inclusivity. Brands that drive inclusivity and embed it into the fabric of their business, and not just react to it, will come out stronger

Smart cities and smarter strategies

As smart cities continue to develop, opportunities for location-based and personalised marketing will expand. Imagine targeting commuters with hyper-relevant offers or using smart infrastructure to enhance convenience and service. The challenge is to balance innovation with relevance, ensuring you add value rather than complexity to your customer’s life.

Stepping confidently into 2025

2025 promises to be a defining year for brands ready to embrace the future of marketing and branding with boldness and innovation. The evolving technological landscape offers endless opportunities to connect with audiences on deeper, more meaningful levels but it can be easy for brands to lose their identity and come across a cold. Integrating these technologies purposefully will deliver the best results and enable brands to communicate authentically with their audiences.

At the heart of this evolution lies a broader responsibility. Sustainability and inclusivity are no longer optional extras but essential commitments. Decisive action on these fronts can transform a brand from being just another option to a meaningful choice for consumers who increasingly prioritise ethics and representation. By merging innovative technologies with authentic values, brands can create experiences that resonate deeply with their audiences, strengthen brand trust, and build a lasting competitive edge.

Do you need help staying ahead of the latest marketing trends? Get in touch – we’d love to help. Alternatively, for the latest marketing insights, take a look at our Articles page.