How To Evolve Your Digital Marketing Strategy To Keep Up With Consumer Behavior

Consumers are using more technology in their daily lives than ever — whether it’s streaming their favorite TV shows, researching their next purchase on their smartphone or using social media to learn more about a local business. To stay competitive, the savvy business owner needs to recognize and adapt to the evolution of consumer behavior and technological advances.

According to WordStream, digital strategies are expected to make up 72% of overall marketing budgets in 2025. That’s a major increase from last year when they estimated it was closer to 60%. These changes create opportunities (and challenges) for businesses.

The increased consumer demand for video content, more personalized experiences, and authenticity from brand communications means that businesses must create a thoughtful, forward-thinking marketing plan. Let’s explore the consumer behaviors your business should focus on in 2025 and the actionable steps you can take to evolve your digital marketing strategy.

EMBRACING OTT/CTV

If your business doesn’t have a video strategy, 2025 is the year to start. Video is a dominant force in digital marketing. Last year, 99% of marketers said that they were incorporating video into their digital plans and will continue in 2025, according to Smart Insights.

The reason? They’re seeing massive ROI — in a fourth-quarter survey by Wyzowl, 93% of marketers said that video marketing gave them a positive ROI.

But that’s just part of the story. When you market with OTT/CTV you take your storytelling to the next level.

Video storytelling lets you:

• Connect with your audience on an emotional level
• Explain complex ideas simply and quickly
• Showcase your products and services
• Build trust and credibility

Unlike traditional broadcast TV, OTT/CTV is targeted, which means you can narrow down your audience with demographic data and deliver your message to the people most interested in your products and services. Plus, you’re not just on one station, you can be on hundreds of OTT platforms. You’re following your target audience no matter what they’re watching, rather than choosing a station or program and hoping your target audience is there.

Even better, you’re able to track the actions a user takes after they watch your ad. That means you can see which ads are most effective and optimize your campaigns — that means ROI!

LEVERAGING PROGRAMMATIC DISPLAY

If you want to maximize your marketing ROI in 2025, programmatic ads are the way to go.

Display ads are an inexpensive option that helps you reach hyper-targeted audiences, delivering your message to them at the right time in their customer service journey. In fact, when someone searches after seeing a related display ad, the chance of them converting is 59%, according to LocaliQ.

Programmatic display campaigns have access to a wealth of data and run across multiple websites, which helps you strategize a multi-channel approach to your marketing. When combined with OTT/CTV and other strategies, it helps you maximize the number of channels you’re using to reach your target audience.

Not only do programmatic ads have a great ROI, they’re great for brand awareness, too. In fact, display ads can increase brand awareness by 80%, according to TechJury.

UPDATE AND OPTIMIZE YOUR SEM STRATEGY

SEM went through a growth period in 2024, and there’s no indication that it’s slowing down in 2025. Increases in keyword competition and users changing their behavior to rely more heavily on Google and Bing have increased the CPC for all SEM campaigns.

To adapt, businesses will need to analyze each of their segments to make sure that they’re getting the most out of their campaigns. At Federated Digital Solutions, our experienced team focuses on regularly analyzing and reporting campaign data to make sure our clients are growing and maximizing the ROI of their campaigns.

Additionally, advances in AI technology are going to change the way that SEM functions. For example, automation of SEM-related tasks will free up marketers to focus on strategic tasks. On the consumer side, smart speakers and voice assistants like Alexa, Siri, and Google Home are driving consumers to be more reliant on AI voice assistants to search when shopping. As a brand, it’s worth considering how you can grab a slice of that pie with voice-optimized search strategies.

To stay competitive in the rapidly evolving world of digital marketing, it’s essential that businesses align their marketing strategy with changes in consumer behavior.

Trends like higher demand for videos, authentic brand communication, and a desire for personalized brand experiences can’t be ignored. These are the factors shaping the future of digital marketing.

By focusing on evolving your OTT/CTV,  programmatic display, and SEM strategies, you can ensure your brand stays top of mind and relevant to your customer’s needs.

If you’re ready to adopt these strategies in 2025, Federated Digital Solutions is here to help. Contact us today and find out how we can create a unique plan for your business that resonates with your audience and drives results.

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