Businesses have access to more data than ever, thanks to ongoing growth in the data analytics market. But with this unprecedented access to information comes increasing pressure on small and midsize businesses (SMBs) to constantly monitor analytics in real time and make decisions based on that information.
For that reason, performance marketing is seeing a rise in popularity as well. By working with marketing companies and advertising platforms, marketers can turn over their campaigns to experts, only paying for results. But each year brings new technologies and changing customer behaviors, and 2025 is no different. It’s important that SMBs keep an eye on current performance marketing trends to make the most of their marketing efforts.
8 Best Marketing Trends SMBs Should Follow in 2025
1. AI-Driven Optimization
Artificial intelligence (AI) has already transformed marketing, and that’s only going to continue in 2025. The technology is no longer solely for automating repetitive tasks: It can be used to provide insights and act on the data in real-time.
“Tools like Google’s Performance Max and AI-powered predictive analytics make it easier to optimize ads in real-time, but businesses shouldn’t rely on automation alone,” cautions Chris Coussons, digital marketing expert and founder of Visionary Marketing. “The brands that mix AI with human creativity and strategic testing will outperform those who let AI run everything on autopilot. AI can optimize spend and targeting, but it still takes a human touch to create compelling, authentic messaging that connects with audiences.’’
Technology that helps maximize your campaigns using AI can also be a big help. Not only will you just pay for results, you’ll get more for each dollar you spend.
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2. Personalization and Automation
AI has made it easy for marketers to fine-tune their marketing, tailoring their messaging to specific audiences. However, this also means more brands than ever are using AI technology to personalize and automate their marketing campaigns. If you aren’t taking those measures, you may find it tough to compete.
“In 2025, personalization and automation will dominate performance marketing,” predicts Windy Pierre, growth marketer at Mad-ez Domains. “Utilizing AI to analyze data and automate campaigns will allow businesses to deliver highly personalized ads to the right audience at the optimal time. Key metrics to watch include conversion rates and ROI from personalized campaigns, compared to non-targeted approaches.”
3. First-Party Data and Privacy-First Strategies
Privacy regulations have made life challenging in recent years, and that will only continue. The European Union’s General Data Protection Regulation (GDPR) law and the California Consumer Privacy Act (CCPA) both restrict the information businesses can collect on customers. Third-party cookies are under fire too, with some browsers now blocking them from deploying on user devices.
“For small businesses, that translates to a complete overhaul of your data strategy,” says Bennett Barrier, CEO and founder of DFW Turf Solutions. “You’ll need to make it a priority to build direct relationships with customers and collect data through channels you own, like email lists or loyalty programs. It’s all about consent-driven marketing, and transparency with your audience is the way.”
4. Influencer and Micro-Influencer Marketing
Getting an influencer to share your product or service can be a great way to reach social media buyers, but it comes at a steep price. Although most marketers keep their spend below $10,000, brands have been increasing their influencer marketing budgets in recent years, with the percentage of businesses spending $500,000 or more increasing by 3.5% from 2023 to 2024.
As Coussons explains, though, micro-influencers have increased in popularity, opening up possibilities for smaller businesses. Instead of spending tens of thousands of dollars on one of the top influencers, SMBs can choose smaller, more engaged creators who drive conversions, not just likes.
“The same goes for affiliate marketing,” he adds. “Brands that work with niche, highly relevant affiliates rather than mass networks are seeing better ROI. Authenticity wins every time, and audiences are becoming more savvy about spotting inauthentic sponsorships.”
For affiliate marketing, SMBs have access to top tech tools that make it easier than ever to find their audience. You can find advertising partners that specialize in health, finance, education, and more. From there, you can target those customers most likely to convert to buyers, further maximizing your spend.
5. Video Marketing and Short-Form Content
Platforms like TikTok, YouTube Shorts, and Instagram Reels have made it possible for marketers to reach large audiences using quick, powerful video clips. As marketers have flocked to those spaces, though, it’s become more and more competitive. Denise Murray, marketing manager at Microdose Mushrooms, points out that to be competitive in 2025, you’ll need more than simple product demos: Social media users react most to engaging storytelling that sparks an emotional connection.
“Small businesses will also be busy creating content that invites the crowd to join in,” Murray adds. “User-generated content will reign supreme in this space, too. Getting customers involved in creating content, such as having customers provide testimonials about their experience with a product, makes for a more real-life video experience.”
6. Niche Partnerships and Affiliate Marketing
In 2025, it’s important for brands to niche down as much as possible. In performance marketing, this relates to the affiliates you work with to promote your brand. Small businesses should think of their affiliate relationships as long-term business partnerships, Murray says, and choose affiliates that know how to reach those customers most likely to buy.
“These affiliates have a sense of knowing their audience inside out, so their endorsement carries more weight,” Murray says. “Small companies should co-create with their partners so that the relationship is organic and natural for both parties. The level of collaboration will lead to increased trust and better conversions.”
7. Predictive Marketing
Artificial intelligence brings another benefit to SMBs. With the right tools, marketers can not only learn from customer purchases and website interactions, they can also predict future behaviors. Murray sees predictive marketing as 2025’s biggest trend, with businesses using technology to see customer activity in real time.
“Understanding and predicting what customers are going to do, businesses will offer targeted experiences before the customer even realizes that they need them,” Murray says. “This is something small businesses must start exploring now. It’s not merely a matter of reacting to data anymore, but of using it to stay ahead of the curve.”
8. Niche Hiring
Colby Flood, founder of DataAlly and Brighter Click, points to hiring and recruitment as one of the biggest shifts in marketing in 2025. As an agency owner, he now sees a need to hire for different skills when choosing a media buyer. “I used to prioritize hiring people with deep expertise in media buying strategies,” he explains. “Now, I’m focused more on hiring marketers who understand direct-to-consumer or software-as-a-service marketing from a high level to help drive growth for the business all around. That’s because platforms like Meta and Google are automating much of the media buying process, so you either need to have one person managing a large number of accounts, or have someone who’s multi-skilled take the lead on other initiatives, like influencer sourcing.”
Key Takeaways
In 2025, AI continues to improve the ability of SMBs to make swift shifts to react to current trends. This year, marketers should be prepared to pivot in real time while also making sure to honor all privacy regulations. Building customer relationships using micro-influencers and short-form video are also great ways to put performance marketing to use in growing your business.
Frequently Asked Questions (FAQs)
What is the future of performance marketing?
The future of performance marketing lies in combining technology with the human element. As consumers get used to interacting with technology, the demand for the human touch will only continue to grow. Murray believes this drive toward human interaction will make customization and personalization even more important.
“The process of marketing will be highly personalized, to the extent that it really does appear to know what one will need ahead of time,” Murray says. “Small companies will need to be able to keep up with such innovations, using them to design customized experiences aimed directly at the individual. Marketing in the future will be like a two-way conversation, and not just something being sent.”
What is an example of a performance marketing strategy?
One of the best examples of performance marketing is pay-per-click advertising, where businesses pay only when a customer clicks on an ad. Instead of paying a flat fee to send a marketing message to a wide audience, businesses only pay when a customer takes action, allowing them to improve the ROI on their spend.
‘’With ad costs rising and competition more saturated than ever, performance marketing remains the best way to maximize ROI,” Coussons explains. “Unlike traditional marketing, it’s fully measurable, highly adaptable, and scalable, which means businesses can pivot quickly based on what’s actually working.”
How big is the performance marketing market?
The performance marketing market was valued at $15.2 billion in 2023, and it’s expected to grow to $30.9 billion by 2032. With small businesses making up 99.9% of all U.S. firms, the demand for cost-effective, results-driven marketing strategies is stronger than ever, and technology makes these strategies accessible even to the smallest startups.
“Performance marketing is the name of the game today because it gives small businesses a means of precisely measuring what’s working,” Murray says. “Marketing dollars need to do more, and by performance marketing, small businesses are able to literally see the impact their efforts are making. It guarantees real-time optimization, so the campaigns are able to change immediately for the greatest impact. In today’s high-speed world, that speed and accountability is just what businesses need to make it through.”
