Rapid Growth in the Adoption of Generative AI for Video Production
The digital advertising landscape is undergoing a significant transformation, with AI-driven digital video ads poised to become a dominant force. According to recent reports, AI-generated video ads are expected to account for around 40% of all advertisements by 2026, with connected TV (CTV) advertising expected to reach $48 billion by the same year.
This projected growth is a testament to the growing majority of total ad revenues that digital video ads already form, moving from 72% in 2024 towards higher levels in the coming years. The shift is particularly noticeable in programmatic and connected TV environments.
Rapid Adoption by Advertisers
Small and mid-sized brands, connected TV advertisers, and creative sectors like animation are leading the charge in adopting AI-driven ads. This rapid uptake can be attributed to the cost and time savings in production, real-time optimization, and the democratization of premium ad inventory that AI technologies offer.
Top Applications of GenAI
The most common application of GenAI is audience versioning, enabling precise message tailoring through programmatic insertion of text, visuals, or audio variants. Customizing ads for different audience segments is the top GenAI application, with 42% of buyers doing so.
Ensuring Compliance and Brand Safety
As the use of AI-generated assets becomes more prevalent, 32% of buyers expect platforms to provide compliance guidance and brand-safety checks to ensure that the content adheres to industry standards and maintains brand integrity.
The Future of AI in Advertising
The real battle will be over human-AI collaboration, with brands that blend AI's efficiency with human creativity, ethics, and strategic oversight achieving the greatest competitive advantage. To harness GenAI effectively, senior social media and influencer marketing professionals should develop an AI-First Creative Playbook.
Analysts attribute the rapid ascent of GenAI to factors such as speed & scalability, cost efficiency, and data-driven personalization. As we move towards 2027, the share of AI-driven creatives is expected to exceed 50%. Nearly one-third of all digital video creatives today leverage GenAI tools such as ChatGPT, Gemini, Synthesia, and Runway.
In summary, the adoption of AI-driven digital video ads is expanding rapidly, particularly in programmatic and connected TV environments. This shift is reshaping advertising spend dynamics and creative processes from 2024 through 2026. As brands and platforms continue to embrace AI technologies, we can expect to see further innovations and advancements in the field of digital advertising.
Artificial intelligence (AI) is increasingly being adopted by small and mid-sized brands, connected TV advertisers, and creative sectors like animation, resulting in cost and time savings in production, real-time optimization, and the democratization of premium ad inventory.
The top application of GenAI (Generative Artificial Intelligence) is audience versioning, which enables precise message tailoring through programmatic insertion of text, visuals, or audio variants, with 42% of buyers implementing this practice.
