Over 80% of Advertisers Plan to Employ Generative AI for Creating Video Ads, Indicates IAB
In the rapidly evolving world of advertising, two key trends are transforming the way video ads are created and delivered – Generative AI (GenAI) and Connected TV (CTV).
According to David Cohen, CEO of the Interactive Advertising Bureau (IAB), the economics of advertising are being significantly transformed due to the falling costs of production with the use of Generative AI. The current trend in video ad creation is strongly influenced by this technology, with about 30% of digital video ads already built from scratch or enhanced using GenAI. This proportion is expected to rise to 39% by 2026, offering a substantial growth for GenAI usage in video advertising.
The adoption of GenAI is not limited to large corporations. Eighty-six percent of ad buyers are either using or planning to use GenAI to create video ad creative, reflecting how foundational the technology has become in video advertising workflows. This technology helps reduce production costs and expands opportunities for more brands, especially smaller and midsize ones, to produce video ads efficiently.
CTV, on the other hand, is a strategic platform for video ads, with advertisers increasingly focusing on it as a key channel for video advertising due to its ability to reach engaged audiences in a premium, TV-like environment. There is rising demand for biddable CTV inventory and video ads integrated into live sports and events, which are becoming critical touchpoints for driving business outcomes like store visits and sales.
The integration of GenAI with CTV advertising enables advertisers to more quickly create optimized, targeted video ads suitable for the CTV ecosystem, further accelerating video ad innovation and effectiveness. This synergy between GenAI tools and CTV channels is driving a democratization of video advertising, expanding the pool of advertisers and transforming how video campaigns are planned, created, and delivered.
The broader video content trend shows video maintaining dominance across digital marketing, with creators and brands favouring video formats for engagement, especially on social media platforms like TikTok and YouTube, highlighting video’s central role beyond traditional ads as well.
The IAB's "2025 Digital Video Ad Spend & Strategy Full Report," released on July 15 during the IAB Media Center’s Video Leadership Summit, provides insights into these trends and more. The report, created in partnership with Advertiser Perceptions and Guideline, offers valuable insights into the impact of Generative AI on ad production, what advertisers are demanding from CTV and live sports, the focus on business outcomes, and more.
In conclusion, the rise of Generative AI and Connected TV is revolutionizing video ad creation by enabling rapid, cost-effective development, creative testing, and scaling. By 2026, GenAI usage for digital video ads is expected to grow substantially, especially among smaller and midsize brands. CTV is a strategic platform for video ads, with advertisers demanding more flexible, data-driven, and biddable ad formats on CTV. The synergy between GenAI tools and CTV channels is driving a democratization of video advertising, expanding the pool of advertisers and transforming how video campaigns are planned, created, and delivered.
- The use of Generative AI (GenAI) in digital video ad production is rising significantly, with about 30% of ads currently built from scratch or enhanced using GenAI, and the proportion expected to reach 39% by 2026.
- Advertisers are increasingly focusing on Connected TV (CTV) as a key channel for video advertising due to its ability to reach engaged audiences in a premium, TV-like environment, and there's rising demand for biddable CTV inventory.
- The integration of GenAI with CTV advertising enables advertisers to quickly create optimized, targeted video ads suitable for the CTV ecosystem, further accelerating innovation and effectiveness in video advertising.
- The IAB's "2025 Digital Video Ad Spend & Strategy Full Report" offers valuable insights into the impact of Generative AI on ad production, the demand from advertisers for CTV and live sports, the focus on business outcomes, and more.
- Video content remains dominant across digital marketing, with creators and brands favoring video formats for engagement, especially on social media platforms like TikTok and YouTube, highlighting video's central role beyond traditional ads.
