Dear ROGER,

Welcome to the March 2025 issue of Key Notes - Marketing Keys' monthly newsletter! As we welcome the start of Spring, we hope your business is blossoming with new opportunities! Key Notes is an informative, quick-read newsletter to get you caught up on all things media and marketing. Our goal is for you to be informed and entertained with the latest media and marketing happenings quickly and efficiently. 

The 2024 election has provided advertisers with valuable data that can shape strategies for 2025 campaigns. What may have seemed like temporary shifts in how media is consumed are actually reflective of more permanent changes. Advertisers can no longer rely solely on traditional channels; instead, a more integrated approach is necessary, combining TV with the increasingly dominant role of digital platforms. This shift is crucial for understanding how to better target audiences and plan campaigns in the future.

While television still plays a significant role, with a large percentage of voters exposed to political ads on TV, digital channels now capture an even larger share of attention. Younger demographics, in particular, are engaging with ads through online video platforms, such as YouTube, at a much higher rate than older age groups. These trends highlight the growing importance of reaching audiences where they spend the most time—across a range of digital spaces, from social media to streaming services.

At the same time, the sheer volume of political ads during the election led to voter fatigue, especially in key battleground states. Many voters felt overwhelmed by the constant barrage of messages, leading to reduced engagement with all forms of advertising. This saturation effect shows that there is a fine line between reaching your audience and overwhelming them to the point of disengagement. Brands must strike a balance in their ad targeting to avoid contributing to this fatigue while still making a strong impact.

Moving into 2025, advertisers will need to take these insights into account, applying them to create more thoughtful and effective campaigns. By carefully selecting the right mix of channels and monitoring the intensity of their messaging, brands can ensure they are not just seen, but also heard, without losing their audience in the noise.

More consumers are warming up to AI, with increasing trust in the information AI-powered tools provide. A recent report shows that 43% of people now trust the data shared by AI chatbots, a slight increase from 40% last year. Additionally, 47% of consumers are regularly using AI tools like ChatGPT and Microsoft Copilot, marking a 6% rise in usage over the past year. The adoption of AI is even stronger in countries like Canada and the U.K., where trust in these tools has grown by 10% and 9%, respectively.

While trust in AI is growing, concerns are still prevalent. The biggest appeal of AI, according to consumers, is its ability to provide quicker customer support, with 47% of respondents highlighting this benefit. Many people also see value in AI helping employees with their tasks, driving creative marketing, and fostering product innovation. However, worries persist, especially around the loss of human interaction, with 59% of consumers voicing concern about this issue. Other fears include job losses and privacy risks, with 43% of consumers uneasy about the security of their personal data.

Despite these ongoing concerns, AI’s role in daily life is expanding. Over half of consumers (54%) are likely to use an AI assistant or chatbot, and many have already incorporated tools like ChatGPT into their routines. Popular uses of AI include answering questions, aiding in learning, and supporting work tasks. With this rise in use, many consumers are calling for more regulation of AI, such as mandatory labeling of AI-generated content and stronger protections for consumer data. While cautious, consumers are becoming more open to the growing role AI plays in their lives.

Fifteen years ago, a new breed of retail brands emerged, focusing on selling a single product directly to consumers through their own online platforms. These companies disrupted traditional retail by offering high-quality products at lower prices, eliminating the middleman and streamlining the purchasing process. Their direct-to-consumer (DTC) model gained significant traction, attracting both consumers and investors who saw the potential for growth in this new approach to retail.

During the COVID-19 pandemic, DTC brands saw rapid growth, fueled by the rise of influencer culture and the increased popularity of online shopping. However, after the initial boom, many of these brands faced challenges as the market began to mature. With venture capital funds dwindling and competition from established retailers with well-established e-commerce platforms increasing, some DTC brands struggled to sustain their growth. As a result, many downsized or shut down entirely.

In the years since, the DTC model has evolved. While the number of brands using this approach has skyrocketed, it’s become clear that relying solely on digital channels isn’t enough to ensure long-term success. Many brands have expanded their reach by partnering with larger retailers or opening physical stores and pop-ups to complement their online presence. Additionally, DTC brands are diversifying their marketing strategies to include traditional channels like direct mail and out-of-home advertising. This blend of digital and traditional marketing is key to staying competitive in an increasingly crowded marketplace.

The rise of DTC brands may have slowed, but the opportunity for innovation and growth remains. For these brands to continue thriving, they must adapt to changing consumer expectations, offering unique products and an engaging customer experience, all while finding the right balance between online and offline strategies.

Country music is experiencing a surge in popularity, and brands are taking notice. With crossover hits blending country with pop and hip-hop, marketers are partnering with country artists to tap into the genre’s growing fan base. Companies like Oreo, Flipz, Coffee mate, Tubi, Whataburger, Nerds, and Hardee’s have all struck recent deals with country musicians. This trend reflects the broader shift in country music, making it more accessible to mainstream audiences.

One standout example is Flipz, which teamed up with Breland, a country-hip-hop fusion artist, to create an original song and promotional video for the brand. Flipz appreciated how Breland’s unique blend of musical influences mirrored their own mix of sweet and salty flavors. This crossover appeal is proving to be a strong marketing strategy, as seen with other campaigns featuring artists like Post Malone, Shaboozey, and Lainey Wilson.

The rise of cowboy culture can also be linked to the pandemic, when audiences turned to shows like Yellowstone, fueling a renewed interest in Western aesthetics. Luxury fashion brands such as Louis Vuitton have incorporated Western-inspired styles into their collections, while musicians like Beyoncé and Post Malone have further blurred genre lines. The trend has also extended to advertising, with country artists featured in major Super Bowl commercials. Brands recognize the loyalty of country music fans and see these partnerships as an opportunity to connect with a dedicated audience. Whether through fashion, food, or music, the cowboy craze is proving to be a valuable asset for marketers looking to make a cultural impact.

For the third year in a row, Disney Advertising successfully sold out its national TV ad inventory for the 97th Academy Awards, solidifying the event’s status as a prime opportunity for advertisers. The thirty-second ad slots were priced at an average of $2 million, with some spots going for as low as $1.7 million and others reaching up to $2.3 million. This year’s Oscars attracted a large audience, continuing the trend of increased viewership, making it an ideal platform for brands to showcase their products.

For the first time, the Oscars were simulcast not only on ABC but also on Disney’s streaming service, Hulu, and broadcast globally via Disney+. The expanded reach provided advertisers with access to a larger audience across more than 200 countries. Leading sponsors included longtime partner Rolex, as well as first-time advertisers like Prudential and T-Mobile. The event featured a wide range of brands spanning various categories, including automotive, healthcare, retail, and technology, further highlighting the event's broad appeal.

The Oscars saw a diverse array of brands, including AirBnB, Audi, Audible, e.l.f. Cosmetics, Hyundai, Starbucks, and Walmart, among others, taking advantage of the opportunity to advertise during the high-profile broadcast. Additionally, Christian Dior Parfum became the first international sponsor for the Oscars on Disney+. With $126.6 million in advertising revenue last year, the Oscars continue to attract significant ad dollars, with 2024 bringing a 4% increase in viewership, reaching 19.5 million viewers. The Oscars remain a crucial event for brands looking to connect with a global audience.

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We can help by placing your campaigns in the right places, at the right times with the right frequencies. We'll make sure your campaign succeeds by examining the cost effectiveness, engagement potential and audience suitability of different media channels.

It is also critical to reach your customer on multiple platforms. This is how they are spending their media day. Therefore, it is critical that your messaging gets targeted and delivered in multiple online and offline ways.

As a 12 year former Disney executive with 30+ years in the business, I have discovered the best ways on how brands can cut through the clutter to reach their target.

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Until next month,

Roger Keys

Founder and CEO

Marketing Keys

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