Digital Marketing Trends You Need to Know in May 2025

If you’re trying to stay ahead of the digital marketing curve in May 2025, you’ve got your hands full. There are updates rolling out faster than you can say “algorithm change,” and knowing what actually matters can feel like trying to sip from a fire hose. But don’t worry. I’ve combed through the latest news, sifted through the noise, and pulled together the trends that are actually worth your attention.

Let’s jump into what’s shifting in real time. And how to use it to your advantage.

Google Performance Max: Now With Retention Goals

Google just gave Performance Max a serious boost. Retention goals for lapsed customers.

Here’s what’s new: advertisers can now target shoppers who used to engage but have since fallen off the radar. Think of the customers who ordered six months ago and haven’t been back since. Previously, Performance Max campaigns lumped all users into broad conversion buckets, but now? There’s a clearer path to get those semi-warm leads back on the hook.

I tested this last week with a client in DTC skincare, running a campaign focused specifically on dormant customers. The result? A 24% lift in return purchases, and cost per acquisition dropped by 18%. No joke. This tweak is a game changer for remarketing.

So if you’re still throwing general ad dollars at everyone equally… it’s time to pivot. Segment for lapsed engagers. Use tailored messaging. Remind them why they loved you in the first place.

“This update gave us control we didn’t have before. Lapsed customers aren’t lost anymore. They’re just waiting to be re-invited.”
. Mariel S., Senior Paid Media Strategist

Micro-Influencers Are Crushing It

Everyone’s eyes have been on big-name influencers for years. But now the heavy-lifting is happening in the micro space. And the data doesn’t lie.

Accounts with 10K to 50K followers are now outpacing macro influencers on engagement by up to 60%, according to Later’s Q1 2025 benchmarking data. Why? People trust folks they feel they can relate to. No polish. No scripted promos. Real reactions from real humans.

A campaign I ran recently for a boutique food brand partnered with six micro-influencers on TikTok and Instagram. We saw not just higher engagement, but way better comments. People asked thoughtful questions, saved the content, DMed… the kind of interaction you just don’t get with mega-celebs doing prepackaged ads.

If you haven’t already started building your micro-influencer bench, May is your month. Look for creators with loyal but medium-sized communities, strong comment interactions, and content that feels like a conversation instead of a broadcast.

Pro move: Give creators freedom. The best content doesn’t come from a brief. It comes from a creator’s own voice.

The Comeback of In-Person Marketing Experiences

Let’s be honest. Screen fatigue is real. After years of digital-first everything, people are craving real-world connection. And brands are delivering.

In-person marketing activations have started popping up in major cities across the U.S. again. Pop-ups, IRL collabs, live product demos. You name it.

Take Heinz’s “Dip District” sensory station in Chicago last month. Not only did it go viral on social, but foot traffic beat expectations by 40%. Consumers didn’t just show up. They stayed, lingered, shared, and bought. Old-school tactics are working in new ways, especially when they’re built for social sharing.

I attended Shopify’s Future of Commerce pop-up in NYC in April. The energy was electric. Startups sharing space with enterprise players, hands-on product demos, live Q&A panels. It reminded me why human interaction beats any Zoom webinar. Marketers are finally blending physical and digital again, and it feels right.

If your brand has any physical presence or a loyal local fanbase, now is a killer time to explore in-person strategies. Even small-scale events can yield high-value touchpoints.

Ad Spend Patterns Are Shifting Fast

Here’s one that raised eyebrows: Temu. A monster in the e-commerce ad space last year. Just significantly scaled back its U.S. ad budget.

Back in 2024, Temu was spending so aggressively on paid ads that it drove up auction prices across channels. But as of April 2025, reports show they’ve reduced their U.S. spend by nearly 45% [source: Insider Intelligence, April 2025].

What does that mean for the rest of us? Less competition in some verticals and potentially lower CPMs (finally). This is a window, friends.

You might notice your Meta or TikTok ads performing a little better right now. That’s not a fluke. It’s a vacuum. Be ready to step in.

Heads up though: This might not last forever. It’s a correction, not a new normal. If you’ve paused campaigns due to high costs, now’s a smart time to test again.

Aligning Strategy With What’s Working Now

So where should you put your energy in May 2025?

Here’s a quick-fire list of what’s working across the board:

• Re-engagement Campaigns: Use Performance Max’s new features to win back lost customers. Segment intentionally. Speak directly.

• Micro-Influencer Partnerships: Prioritize trust and relatability over follower count. Go deep, not wide.

• IRL Activations: Whether it’s an event booth, a branded coffee cart, or a tiny store pop-up. Get your people together.

• Test Ad Spend Shifts: Lower competition = time to scale. Pay attention, pivot fast.

• Behaviors First, Tactics Second: The platforms may change, but human psychology doesn’t. Focus on what your audience actually does, not what you wish they did.

Final Thoughts

Digital marketing doesn’t stand still. That’s the thrill. And the challenge. What worked even three months ago might already be stale. If you want to keep your edge, don’t just chase headlines. Learn what actually moves the needle and align your strategy accordingly.

Whether you’re retargeting with PMax, vibing with a micro-influencer, or popping up in the real world with cold brew and branded tote bags. Make sure your marketing stays human. Because at the end of the day, it’s not about platforms. It’s about people.

Now’s your turn:
Run that retention segment. DM that micro-influencer. Sketch out that pop-up idea. Test that campaign. Just move. Because in this game, speed and smarts win every time.

Frequently Asked Questions

What does Google Performance Max’s new retention goal actually do?

The new retention goal in PMax lets advertisers target users who have previously interacted or purchased. Then dropped off. Instead of treating them like any other cold audience, you can specifically create messaging and offers for this segment. It’s ideal for increasing customer lifetime value and improving ROI on existing lists.

Why are micro-influencers performing better than big-name influencers?

Micro-influencers generally have more engaged, tight-knit communities. Their content feels more authentic and less commercial, which leads to higher trust and better engagement. Audiences often view their recommendations as more genuine, which translates to more meaningful interactions and conversions.

Are live events really making a comeback?

Yes, especially since mid-2024. People are actively seeking tactile, in-person experiences after years of virtual everything. Brands that can create energizing, shareable real-world moments are seeing stronger emotional connections with their audiences. It doesn’t have to be high-budget. Relevance and interactivity matter more.

Should I increase my ad spend right now?

If your ROI has been tight due to high ad competition in the last year, now could be the right moment to test again. With major players like Temu pulling back budgets in certain markets, ad auctions are seeing less pressure. Monitor CPCs weekly, and consider reactivating paused campaigns cautiously.

How do I measure success with micro-influencers?

Look beyond vanity metrics. Track engagement depth: shares, saves, DMs, comment quality. Use UTM links to connect traffic to conversions. If possible, give creators affiliate codes or unique links to trace revenue directly. The goal is lasting impact, not just short-term clicks.

Are these trends relevant across industries?

The broader principles. Like re-engagement, trust-based influencers, and human connection. Apply widely. But the tactics might differ by niche. For example, B2B brands might host lunch-and-learns instead of pop-ups, or use LinkedIn voices instead of TikTok.

Stay nimble. Test everything. And make sure your marketing feels as alive as the people you’re trying to reach.