Over 80% of advertising professionals plan to employ Generative Artificial Intelligence to create video commercials, reports the IAB.
The Interactive Advertising Bureau (IAB) has released its "2025 Digital Video Ad Spend & Strategy Full Report," revealing that half of advertisers are currently using Generative AI to build video ads. This trend is particularly prominent among small and mid-tier brands, with 86% either already using or planning to use the technology by 2025.
The report, created in partnership with Advertiser Perceptions and Guideline, provides insights into the impact of Generative AI on ad production and other topics. According to the report, released on July 15 during the IAB Media Center's Video Leadership Summit, nearly 90% of advertisers are expected to use Generative AI for video ad creation by 2026.
For small and mid-tier brands, the adoption of Generative AI is even more pronounced. By 2026, these brands expect around 45% (small) and 42% (mid-tier) of their digital video ads to be developed using Generative AI, compared to 36% for larger brands. This higher adoption rate is driven by AI's ability to democratize video ad production, making it easier and more affordable to rapidly produce personalized creative without the traditional high costs and complexity.
Key current uses of Generative AI include customizing video ads for distinct audience segments, accelerated creative iteration and testing, and human oversight and compliance controls. For example, 42% of buyers are using AI for versioning, while 46% want publishers to facilitate AI-based creative experiments. Many buyers also emphasize the need for human-in-the-loop review to maintain brand standards and avoid regulatory or reputational risks.
Future projections indicate that Generative AI will continue expanding its share in video ad production, expected to reach 39% of digital video ads by 2026 overall. The report also highlights ongoing improvements in AI tools to better support compliance, quality assurance, and performance transparency, empowering small and mid-tier brands to compete effectively by leveraging data-driven personalization and cost-efficient video production capabilities.
Advertisers increasingly demand immediate business outcomes, especially in Connected TV (CTV). Buyers expect 47% of CTV inventory to be biddable, up from 34% last year. The report also shows that CTV is rapidly closing the gap with social video as a performance-driving channel. Three out of four buyers have built or are planning to build internal teams to manage self-serve CTV activation in-house.
David Cohen, CEO of IAB, stated that the economics of advertising are being transformed due to the falling costs of production and the increasing opportunities for advertisers. Advertisers are using Generative AI creative enhancement capabilities to create versions for different audiences, visual style changes, and contextual relevance. Economic uncertainty has made these business outcomes even more critical.
The report can be accessed here.
- Advertisers are increasingly using Generative AI for content creation, specifically video ads, with 90% expected to use the technology by 2026.
- The report from the Interactive Advertising Bureau (IAB) indicates that small and mid-tier brands are embracing the use of Generative AI in video ad production, with up to 45% of their ads set to be developed by 2026.
- Key uses of Generative AI in ad production include customizing video ads for specific audience segments, accelerated creative iteration, and maintaining compliance with human oversight.
- Current trends show that advertisers are focusing more on immediate business outcomes, particularly for Connected TV (CTV), with 47% of CTV inventory predicted to be biddable.
- The report, which can be accessed online, highlights that ongoing advancements in AI tools will empower small and mid-tier brands by enabling data-driven personalization and cost-efficient video production, which could help them compete effectively.
