The Interactive Advertising Bureau (IAB) has published its detailed "2025 Digital Video Ad Spend & Strategy Full Report, " offering a thorough analysis of current trends and future prospects in digital video advertising. A major highlight is the transformative role of generative artificial intelligence (GenAI) in video ad production. The report finds that 86% of advertisers are already using or plan to adopt GenAI technologies soon, drastically changing how video content is created and distributed across platforms. By 2026, GenAI is projected to account for about 40% of all video ads, emphasizing its growing importance in marketing. Small and mid-sized brands are leading this trend, capitalizing on GenAI’s cost efficiency to produce high-quality, engaging videos without large budgets, thereby leveling the competitive field with bigger brands. Advertisers are increasingly leveraging GenAI to customize video ads for diverse audiences and contexts, creating multiple versions optimized for different demographics, platforms, or user environments. This tailored approach enhances ad relevance, boosting engagement and return on investment. The report also examines the evolving connected TV (CTV) advertising landscape. With the rise of smart TVs and streaming devices, CTV has become crucial for audience reach. An increase in biddable inventory indicates more advertising space available for programmatic buying, enabling real-time campaign optimization and bid adjustments based on performance data.

There is also rising demand for interactive and real-time data integration in CTV live streaming. Advertisers are incorporating interactive elements—such as clickable overlays, polls, and instant offers—that engage viewers and provide valuable data to refine targeting and creative strategies. Despite expanded self-serve CTV tools, most advertisers maintain internal teams focused on campaign activation, optimization, and measurement to align efforts with marketing goals, while still seeking personalized support and strategic guidance from partners. A key theme across the report is advertisers’ strong emphasis on measurable business outcomes. Marketers expect digital video ads, including those on CTV and social media, to drive quantifiable results like increased sales and store visits. Campaign effectiveness is closely tracked, and failure to demonstrate clear returns remains the top reason for cutting ad budgets. This outcome-oriented mindset is pushing greater adoption of advanced analytics, attribution models, and performance tracking to validate investments. In summary, the IAB’s 2025 report reveals a dynamic digital video advertising landscape rapidly transformed by generative AI, which enables more personalized, efficient, and cost-effective content creation. Meanwhile, connected TV advertising continues to expand with increasing programmatic opportunities and interactive, data-driven features reshaping audience engagement. Advertisers balance automation and self-service platforms with specialized internal teams and partner support, all underpinned by a rigorous focus on delivering measurable business results. This underscores digital video’s strategic role as a vital marketing driver in the years ahead.