Almost 9 in 10 advertisers plan to employ Generative AI for producing video ads, as predicted by the Interactive Advertising Bureau (IAB)
The Interactive Advertising Bureau (IAB) has released its highly anticipated "2025 Digital Video Ad Spend & Strategy Full Report," which was unveiled on July 15 during the IAB Media Center's Video Leadership Summit. The report, created in partnership with Advertiser Perceptions and Guideline, sheds light on the current trends and future projections in video advertising.
One of the key findings is the rapid and widespread adoption of Generative AI (GenAI) in video ad creation. According to the report, half of advertisers are already using GenAI to build video ads, and this number is expected to rise significantly, with nearly 90% of advertisers planning to use GenAI by 2025. This technology is revolutionizing the industry, enabling marketers to create high-quality video content more efficiently, affordably, and at scale.
The report highlights that small and mid-tier brands (SMBs) are adopting GenAI faster than the largest brands. This is due to the significant cost savings and reduced reliance on large creative teams or expensive resources that GenAI offers, giving smaller brands access to video production capabilities previously exclusive to big players. By 2026, SMBs anticipate that a larger share of their digital video ads—around 42-45%—will be developed using GenAI, compared to 36% projected by larger brands.
The report also emphasizes the importance of delivering business outcomes in digital video advertising, especially in the face of economic uncertainty. Failure to deliver these outcomes is the top reason digital video buyers reduce or remove spend with streaming partners.
In terms of Connected TV (CTV), the report suggests that buyers are focusing more on business outcomes, viewing it as a performance-driving channel similar to social video. Advertisers expect 47% of CTV inventory to be biddable, up from 34% last year. More than 80% of digital video buyers want human assistance from their sell-side partners when activating CTV programmatically.
The report further states that 86% of buyers are using or planning to use GenAI to build video ad creative. Advertisers are using GenAI creative enhancement capabilities to create versions for different audiences, visual style changes, and contextual relevance.
For CTV platforms offering self-serve activation tools, there is an ongoing need to continue to engage directly with buyers. CTV is rapidly closing the gap with social video in terms of driving business outcomes such as sales and offline store visits.
David Cohen, CEO of IAB, states that the economics of advertising are being transformed due to the decreasing costs of production, allowing for more advertising opportunities. GenAI tools like Runway, Synthesia, Pika, and Meta’s AI Sandbox are empowering marketers to produce engaging content quickly, making video advertising more agile and business-outcome focused.
In conclusion, the adoption of Generative AI in video advertising is a trend that is here to stay. This technology is democratizing video advertising, expanding the pool of advertisers who can effectively plan, buy, optimize, and create video ads across various media platforms.
Sources: 1. IAB Press Release 2. AdExchanger Article 3. Marketing Dive Article 4. MediaPost Article
- The report, unveiled by the Interactive Advertising Bureau (IAB), reveals that nearly 90% of advertisers plan to use Generative AI (GenAI) by 2025 for video ad creation.
- By 2026, small and mid-tier brands (SMBs) anticipate that a larger share of their digital video ads will be developed using GenAI, compared to larger brands.
- In the future, digital video advertising is expected to be more business-outcome focused, with 86% of buyers using or planning to use GenAI to build video ad creative.
- The report emphasizes the importance of Connected TV (CTV), with buyers focusing more on business outcomes and expecting 47% of CTV inventory to be biddable by 2022.
- The economics of advertising are being transformed, according to David Cohen, CEO of IAB, with the decreasing costs of production and the increased use of GenAI tools like Runway, Synthesia, Pika, and Meta’s AI Sandbox.
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