In MikMak’s recent State of the Union video, Founder and CEO, Rachel Tipograph reflects on a complex and unpredictable first half of 2025. Across industries such as Beauty, Alcohol, Home Improvement, and Consumer Electronics, brands are navigating rising costs, shifting consumer behavior, and pressure to deliver more efficient performance.
Getting products to market is more expensive than ever. Consumers are making emotionally driven, sometimes irrational choices. And while expectations are rising, resources are not. Marketers are being asked to do more with less, all while staying ahead of fast-moving trends.
At the same time, media spending is on the rise, even as volume sales decline. This growing disconnect has forced brands to rethink their investment strategies and measurement approaches.
In 2025, Brands Continue to Invest in Social
Despite the challenges 2025 has brought on, social platforms remain at the center of brand media plans. MikMak data from over $2.5 billion in global ad spend shows that Meta consistently accounts for around 50 percent of media traffic. While individual quarters may vary, Meta continues to deliver reach and results for many advertisers.
Google Search has gained momentum, especially with the rise of Gemini as a widely used generative search tool. Marketers are leaning in as Alphabet’s products continue to deliver performance and stability.
TikTok, once a top growth channel, has seen declines due to brand safety concerns and uncertainty around its future. Its share of traffic has dropped from 14 percent to around 10 percent.
Meanwhile, Reddit is becoming more important, especially in the context of generative search. Since many LLMs are trained on Reddit content, it is now a platform where brand relevance can directly influence discoverability.
Media Has Been Volatile in the US for H1; Real-Time Data is Key
In the United States, media investment has shifted rapidly throughout the first half of the year. Some platforms lost traction, while others gained ground. TikTok declined, while Google Search and Pinterest saw an increase in spend. The Trade Desk, which now plays a leading role in CTV and offsite retail media, continues to gain advertiser attention.
This volatility highlights the need for tools that offer real-time media visibility. Brands can no longer afford to rely on static benchmarks. Decisions must be grounded in what is happening today.
EU Media Has Remained Relatively Stable
In contrast to the United States, media spending in the European Union has remained fairly steady. Budgets continue to be split across three core platforms, with roughly one-third going to Meta, one-quarter to Google Search, and about 20 percent to TikTok.
The relative consistency of media plans in the EU gives marketers more predictability in planning, even as global conditions remain in flux.
Consumers Are Still Spending as Tariffs Spike Economic Uncertainty
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Tariffs and political instability have raised concerns across the industry, but MikMak data tells a different story. Between April and July, conversion rates ranged from 7.9 to 9.9 percent across MikMak’s global customer base, suggesting shoppers are still willing to buy.
The data shows a unique pattern. Consumers are spending heavily on luxury items, while cutting back in areas like food and household staples. These behaviors may not follow economic logic, but they are real. Brands that understand this dynamic can adjust accordingly.
Big box retailers remain the top destination across nearly every category. In the United States, Walmart continues to lead. In Europe, major players like Superdrug, Boots, and DM are seeing consistent performance. Consumers are prioritizing convenience and trust when deciding where to shop.
AI Is Disrupting Commerce and Marketing As We Know It
AI is not a future trend. It is already transforming the way consumers discover and buy products, and the way marketers execute campaigns. At MikMak, referral traffic from ChatGPT has increased by 250 percent in the last six months. This confirms that generative search is already reshaping the shopper journey.
On the advertising side, automation is accelerating. Planning, buying, optimizing, and reporting are being streamlined by AI systems. Zuckerberg’s prediction that most ad operations will be agent-driven by 2026 is starting to feel very plausible.
These shifts extend into commerce itself. AI shopping agents are beginning to guide consumers through discovery and even checkout. While high-consideration purchases are still human-led, many commoditized products are now being bought automatically.
To stay competitive, brands must:
- Maintain accurate, structured product data across all digital touchpoints
- Ensure visibility in generative search environments
- Build brand equity that resonates with both humans and algorithms
Prediction 1: Full-Funnel Media Strategies Will Drive Growth
Brands that only invest in last-click performance will fall behind. The strongest performers in 2025 are the ones balancing upper-funnel brand investment with measurable conversion tactics. Brand awareness creates new demand. Conversion tactics close it.
Prediction 2: Brands That Make Real-Time Optimizations Will Beat Market Volatility
Between TikTok regulation, cultural moments, and shifting consumer sentiment, market conditions are changing quickly. Brands that respond in real time have a clear advantage.
BIC UK offers a great example. After making quick optimizations to its campaign strategy, the brand saw a 12 percent increase in return on ad spend.
Prediction 3: AI Will Reshape the Entire Shopping Ecosystem, But Brand Equity Will Remain Critical to Success
As AI shopping agents become more involved in discovery and conversion, only a few brands will appear in generative results. LLMs prioritize brand relevance, availability, and consistency. That means established brands with strong reputations are more likely to surface.
For emerging brands, winning in this environment will require:
- Rich, structured product data
- Thoughtful presence on platforms like Reddit and brand-owned channels
- Seamless retail integrations to ensure availability and accuracy
What’s Next
The second half of 2025 will bring more change, but also more opportunity. Brands that stay grounded in real-time insights and prepare for a future shaped by AI will be positioned to lead.
If you want to explore these trends further:
- Watch the full 2025 State of the Union video from Rachel Tipograph
- Read our 2025 Holiday Guide for industry-specific insights and best practices
