2025 performance marketing trends: What retailers need to know

Every single click, sign-up and sale counts in a highly competitive market, which means performance marketing will continue to be a driving force for online retailers, but what are the key shifts we can expect to see throughout this year and beyond? From AI-powered personalisation to privacy-first strategies, here we highlight the tools and tactics that will redefine performance marketing strategies in 2025.

AI-powered personalisation at scale

No longer a futuristic concept, artificial intelligence (AI) is now an integral part of everyday life, transforming how brands connect with shoppers. This year, AI will play an even bigger role in performance marketing, enabling hyper-personalised campaigns at scale.

Predictive analytics will empower marketers to anticipate customer needs and behaviours, allowing for more targeted ad placements and messaging, while dynamic creative optimisation (DCO) will use AI to automatically tailor ad creatives to individual users in real time, boosting engagement and conversions. Additionally, as chatbots and AI-driven customer service tools continue to improve, they’ll enhance the post-click experience, providing instant support and info to drive shopper retention and loyalty.

Privacy-first prioritisation

With increasing regulations such as GDPR and the changing landscape of third-party cookies, privacy-first marketing will likely dominate in 2025. Marketers will need to adapt by focusing on first-party data and building trust with their audiences.

As a result, zero-party data - information willingly shared by customers - will become essential for creating personalised campaigns without compromising privacy. Contextual targeting will replace traditional behavioural targeting, allowing brands to serve ads based on the content users are engaging with, rather than their browsing history. 

Transparency and consent will also be key, with retailers prioritising clear communication about how customer data is used in an increasingly regulated digital world.

The growth of Social Commerce

Social commerce has already established itself as a cornerstone of performance marketing, offering retailers unique opportunities to connect with audiences and drive measurable results.

Short-form video content, popularised by platforms such as TikTok, Instagram Reels, and YouTube Shorts, is now at the forefront of user engagement. These formats enable brands to tell compelling stories and showcase products in seconds, capturing attention and driving action like never before.

Additionally, more recently introduced features such as shoppable posts, in-app checkout, and live shopping events have transformed social platforms into seamless shopping destinations. For brands, this means these channels can no longer be ignored. Embracing such capabilities is essential for staying competitive and meeting customers where they already spend their time.

The expansion of commerce media networks

Commerce media networks, which connect advertisers with retailers to target shoppers at the point of purchase, are anticipated to gain significant traction over the course of this year, while retail media giants such as Amazon Ads are expected to grow even further.

On-site and in-app advertising will allow retailers to reach customers while they’re actively shopping, increasing the likelihood of conversion, and performance-based pricing models will ensure that advertisers only pay for measurable results.

For eCommerce brands, these networks will provide new opportunities to engage customers at critical moments in the purchasing journey, driving both awareness and sales. By leveraging such networks, brands can deliver highly relevant ads that resonate with shoppers, ultimately boosting ROI and staying competitive in an increasingly crowded marketplace.

Omnichannel attribution

Performance marketing success will depend more than ever on accurate omnichannel attribution, which involves understanding how different touchpoints contribute to conversions. With shoppers now frequently engaging with brands across multiple devices, platforms, and channels before making a purchase, retailers need to move beyond last-click attribution and adopt more sophisticated models that capture the full customer journey.

AI-powered attribution models will play a key role, helping marketers analyse vast amounts of data to determine which channels and tactics are driving the best results. Incremental testing will also become essential for measuring the true impact of campaigns, ensuring brands invest in strategies that genuinely make an impact.

As performance marketing continues to evolve at a breakneck speed, retailers  that invest in holistic measurement strategies will ultimately gain a competitive edge, enabling them to optimise budgets more effectively, reduce wasted campaign spend, and deliver a seamless customer experience across every brand touchpoint.

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