If you run a small or medium-sized business and you’re still trying to make sense of your ad spend, AI tools, or new privacy rules—you’re not alone.

The advertising world is moving fast, and 2025 has already delivered a wave of changes that will reshape how we all do business.

That’s why we created The State of Advertising and Marketing in 2025–2026—a powerful, insight-packed report designed specifically for SMEs trying to keep up, cut waste, and grow smarter.

You can sign up for our newsletter to receive it free, or you can grab it directly.

But let’s see what’s up with Programmatic Advertising and what SMEs need to know.

AI and Programmatic Ads: What SMEs need to know

Google Performance Max is the best starting point if we want to look at how AI is changing the face of Programmatic Advertising. Performance Max (PMax) has made a 641% ROAS the new normal.

In fact, PMax now delivers an average return on ad spend (ROAS) of 641%, with some businesses like KEH seeing 76% revenue spikes and 12x higher returns than traditional campaigns.

Zalando, on the other hand, cut its campaign production time in half and saved 90% in costs using generative AI.

But it’s not plug-and-play. You need 30–60 conversions per month just to feed the algorithm properly. That’s a high bar for many SMEs.

90% of Display Ads Are Already Automated

In 2025, 90% of display ads are bought and sold programmatically.

CTV (connected TV) ad spend is projected to hit $32.6 billion, and mobile advertising is racing toward a $1.3 trillion market by 2030.

The reason? Efficiency.

AI bidding reduces CPMs by 15%, meaning your media dollars stretch further. But there’s a tradeoff: more automation means more complexity in measuring real campaign performance.

And here’s the kicker—search ad costs are rising, not falling:

• CPC is up 12.88%
• Cost per lead is up 5.13%
• Yet conversion rates and CTR are also increasing

If you don’t know how to track ROI properly, you’re just guessing. And guessing is expensive.

Compliance Isn’t Optional Anymore

Privacy laws have gotten serious. In 2025:

• The EU AI Act mandates explainability in AI decisions.
• The GDPR is enforced harder than ever.
• Non-compliance can cost SMEs up to £185,000 in fines.

And data transfer rules? An interesting one for sure!

The EU-US Data Privacy Framework could be struck down at any time, leaving businesses using US-based tools exposed.

You must now complete:

• Data Protection Impact Assessments (DPIAs)
• Transfer Impact Assessments (TIAs)
• Enhanced consent mechanisms
• Vendor audits and GDPR rep assignments

This is not something that “will” or “may” happen. It is already happening, and we discuss fines and best practices.

Third-Party Measurement: Why You Can’t Rely on Google’s Data Alone

Google won’t tell you if your ads are actually moving the needle.

That’s why Marketing Mix Modelling (MMM) and Multi-Touch Attribution (MTA) are essential.

You will need to learn:

• How to validate true campaign incrementality
• When to layer in offline conversions
• Why “clicks” don’t always mean results

And most importantly, how to build your own measurement stack with tools that fit your budget.

We have a plethora of tools our clients can use when joining one of our SME Navigator Plans.

Why Personalisation Still Wins (If You Do It Right)

Gen Z and Millennials still engage with ads—if they’re tailored:

• 57% of Gen Z say ads influence their buying decisions.
• 56% of them engage more with personalised content.

AI-powered tools let you scale this kind of personalisation.

The report shows you how even small teams can deploy:

• Contextual targeting
• Federated learning models
• Privacy-first identity resolution

The end of third-party cookies doesn’t mean the end of relevance. It just means you need a smarter data game.

Want the Full Report?

This blog post is just a teaser.

The State of Advertising and Marketing in 2025–2026 is a 40+ page deep dive packed with actionable strategies, real campaign data, regulatory briefings, and SME-specific insights.

👉 Sign up for our newsletter and get it FREE
📥 Or buy the PDF 

Either way, it’s one of the smartest marketing investments you’ll make this year.