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H1 2025 has thrown plenty of challenges at brands navigating political and economic uncertainty. There’s no doubt that grabbing consumer attention is more competitive and messier than ever. Tried-and-tested strategies aren’t always delivering like they used to, and brands need to rethink how they invest and measure return to stay ahead.
The story of H1 can be summed up in three key themes:
Meta CPMs are up 13%, and PPC CPCs have risen 10–20%. Investment continues to grow, but having a tightly focused, acquisition-led strategy is now essential. Simply doing what you've always done, targeting the same audiences with the same tactics at higher costs, isn’t a viable long-term approach.
We’re seeing brands rethink their paid media strategy altogether: driving improvements in conversion and click-through rates has become a non-negotiable priority. For example, creative optimisation can improve both metrics by up to 10%. In PPC, some brands (especially in electronics) are moving away from PMax to regain control, opting for Standard Shopping to fine-tune placements more effectively.
Spend diversification is evident in our data: TikTok is finally living up to its hype, with a +277% YoY increase in spend compared to just +46% on Meta. That said, Meta still dominates the Paid Social landscape, with TikTok making up only 15–25% of total spend.
Beyond Paid Social and PPC, we’re seeing renewed focus on the affiliate channel. Many retailers are revisiting dormant or under-optimised programmes. On average, affiliates contribute around 10% of sales (based on GA4 DDA revenue), and recent data from the Affiliate and Partner Association shows affiliate investment was up 9% YoY in 2024.
H1 was packed with new features, especially AI-related, from both Google and Meta. Google released AI Max and began monetising AI Overviews in the US, while Meta rolled out conversion value rules, integrated Meta-GA4 tracking, and introduced ratings and reviews.
The pace of change is fast, and many retailers are finding it overwhelming. Deciding what to test (and when) while still hitting performance targets is a major balancing act.
While economic uncertainty remains, we’re not seeing budgets drop—if anything, they’re holding steady or growing, particularly in Paid Social. To keep up, brands must focus on improving CTR and C/R, with creative optimisation leading the charge.
In PPC, certain sectors benefit from more control, moving away from automated strategies like PMax and reintroducing Standard Shopping where appropriate. This has helped brands better manage spend and placement quality.
Brands focused solely on end-of-funnel conversions risk stalling growth. Shifting attention earlier in the journey is vital, even if it changes how you evaluate ROAS.
PPC Shopping remains a powerful first-touch driver - optimising your feed and campaign structure is essential. In the affiliate space, CSS partners operating on a CPA model can drive up to 60% new customers with a fully optimised setup. Combining PPC Shopping with affiliate CSS is a smart way to reach more consumers in today’s multi-touch environment.
Now’s the time to test new channels, but that doesn’t mean chasing every new shiny thing. Stick to a “fewer, bigger, better” approach.
In PPC, consider expanding into Demand Gen or YouTube to grow top-of-funnel reach. These tactics typically have longer payoff windows, so adjust your ROAS expectations accordingly and use broader metrics like MER (Marketing Efficiency Ratio) to track impact.
In Paid Social, TikTok should be on the radar, especially for brands that previously dismissed it. The platform’s tools have matured, with Smart+ and TikTok One making it easier to source creators and manage campaigns.
Affiliates also deserve renewed attention. No longer limited to discount and voucher sites, affiliates now include premium content publishers (e.g. Grazia, The Independent) and high-intent closed user groups like BlueLightCard. With the rise of retail media and brand-to-brand partnerships, the affiliate space is a rich area for scalable, high-quality traffic.
In Paid Social, staying competitive means testing and adopting platform updates. Meta's AI features, like conversion value rules, GA4 integration, and Smart Campaign updates, may not be game-changers alone, but together they can drive significant performance gains. TikTok and Pinterest’s AI tools (Smart+ and Performance+) continue to deliver strong results.
In PPC, the rise of AI tools is creating both opportunity and complexity. AI Max and monetised AI Overviews (US-only for now) are reshaping the SERP landscape. UK advertisers should prepare for similar changes that could affect auction dynamics and visibility. Education is key - both for internal teams and senior stakeholders.
That said, AI isn’t a one-size-fits-all solution. In some sectors, reverting to manual management still delivers better control and results.
With costs continuing to rise, especially around peak periods like November, it’s time to plan smart. Big-budget competitors will dominate auctions, so start early. Use Paid Social to build audiences in Q3 that can fuel CRM and email campaigns in Q4.
In PPC, now’s the time to test top-of-funnel activity and ensure your Shopping setup and feed are in peak condition. And if you’re not running Shopping via a CSS, you’re leaving a 20% discount on the table; make this switch ASAP.
Affiliates will play a crucial role in Q4 retail. If your programme is inactive, activate it now. Recruit high-performing partners early and get your CSS running on a CPA model to expand your reach. Cashback is still huge (TopCashback has 16M UK members alone), and smart brands are building affiliate strategies that reflect how people shop.
Finally, stay alert! Google’s AI Overview ads are likely headed to the UK/EU soon, and they will shift how search visibility works. Want to stay on top of what’s next? Sign up for the Genie Goals newsletter or get in touch: hello@geniegoals.co.uk.
