As the advertising industry continues to evolve in response to media fragmentation, technological advancements, and shifting consumer behaviours, the Advertising Pays panel at the Advertising Association Lead 2025 conference offered an in-depth exploration of how brands, agencies, and media owners are navigating this complex landscape.
Chaired by Stephen Woodford, Chief Executive of the Advertising Association, the discussion brought together Laura Fenton, Chief Executive of OMG UK; Catherine Kehoe, Chief Customer Officer at Nationwide; Kelly Williams, MD Commercial at ITV; and Dan Wilks, Director at Credos. The panellists examined the forces driving industry change, the role of creativity and technology in growth, and the increasing need for more sophisticated measurement and collaboration.
Growth dominance and media fragmentation
The discussion opened with a focus on growth—a dominant theme shaping conversations across the industry. Growth is both an imperative and a challenge in today’s advertising world, requiring brands and agencies to adapt to new consumer behaviours and media consumption habits.
Catherine Kehoe highlighted the paradox of change: while technology and media channels have shifted dramatically over the past two decades, fundamental advertising principles remain unchanged.
“Creative remains the most important determinant of advertising performance, and brand-building is still central to consumer choice,” she noted. Yet, she acknowledged that smartphone adoption, media fragmentation, and the rise of digital platforms have fundamentally reshaped how brands grow and engage with consumers.
Laura Fenton echoed this sentiment, pointing to the arms race for data and analytical talent within marketing departments. Today’s advertising landscape demands a delicate balance between creativity and technology to optimise impact. Agencies must now function not just as creative powerhouses but as strategic growth analysts, leveraging data to inform planning and drive commercial outcomes.
The changing role of advertising: From one-way to two-way engagement
A key shift discussed by the panellists is the transition from one-way advertising to a two-way dynamic, where consumers actively engage with brands through digital platforms. Kelly Williams of ITV described how this change impacts the TV industry, pushing broadcasters to move beyond traditional ad models to more data-driven, addressable, and creative solutions.
“The industry has historically focused on outputs—reach and frequency—but we need to shift towards outcomes, such as sales and profit margins,” Williams explained. ITV, like many media owners, is investing heavily in proving the effectiveness of TV advertising, collaborating across the industry to enhance measurement and attribution.
Retail Media and the Long Tail Opportunity
Retail media has emerged as a major growth area, with OMG UK forecasting a 14% growth in retail media in the UK this year. As agencies expand their capabilities to encompass e-commerce and direct-to-consumer channels, integrating retail data into advertising strategies is becoming crucial.
Fenton discussed how retail media bridges the gap between brand awareness and conversion, offering advertisers a more precise way to target audiences based on purchasing behaviour. She also pointed to the growing opportunity in the “fat end of the long tail”, where mid-sized brands, previously constrained by budget limitations, can now leverage digital media to scale their advertising efforts.
The Measurement Challenge: Proving Advertising’s Impact
Despite the wealth of data now available, proving the direct impact of advertising remains a challenge. Dan Wilks of Credos stressed the need for more robust measurement frameworks to demonstrate advertising’s value not just to marketing teams, but to CFOs and CEOs who drive business decisions.
“The industry has made great strides in quantifying advertising’s impact on business growth, but we need to do more,” Wilks argued. He emphasised the importance of sharing success stories through initiatives like the IPA Effectiveness Awards and making the case for advertising investment beyond traditional marketing metrics.
Kehoe added that the fight for consumer attention has never been fiercer. With media fragmentation leading to increasingly personalised and tactical campaigns, the challenge lies in ensuring that cross-channel reach and frequency remain effective. She pointed to initiatives like the Origin Project as crucial steps towards better cross-media measurement.
The Future of Advertising: Integration, Collaboration, and Effectiveness
As the session wrapped up, one clear message emerged: advertising’s future depends on a more integrated, outcomes-focused approach. The industry must continue to refine how it measures success, ensuring that investment in advertising is seen as a driver of business growth rather than a discretionary cost.
Agencies and media owners must also embrace collaboration, whether through industry-wide measurement initiatives or new partnerships that drive commercial success. With brands increasingly demanding accountability for their advertising spend, remuneration models may also need to evolve, with agencies sharing more risk in exchange for reward based on performance.
