Nearly 90% of Advertisers will Use Gen AI to Build Video Ads, According to IAB's 2025 Video Ad Spend & Strategy Full Report

Store Visits and Sales Are Now the Most Important KPI for Video Buyers; 
Expectations for Biddable CTV, and Live Sports and Events Rise

NEW YORK, July 15, 2025 /PRNewswire/ -- Video's transition to the future is accelerating, with half of advertisers already using Gen AI to build video ads, according to IAB's "2025 Digital Video Ad Spend & Strategy Full Report."

Created in partnership with Advertiser Perceptions and Guideline, Part Two of the report provides insights into the impact of GenAI on ad production, what advertisers are demanding from CTV and live sports, the focus on business outcomes, and more. Part One of the report was released in April.

"The economics of advertising are being transformed. As the costs of production fall, the opportunities for advertisers multiply," said David Cohen, CEO, IAB. "The pool of potential advertisers is growing, as it is easier than ever to plan, buy, optimize, and creatively connect with consumers utilizing new technologies across all forms of media. The democratization of advertising and marketing is entering an exciting new phase, and the outlines of a new future are coming into view fast."

GenAI Is How Video Ads are Being Created

Generative AI is rapidly becoming a cornerstone of video ad creation, transforming how campaigns are developed, tested, and scaled. GenAI is now essential for video ad creation, with 86% of buyers using/planning to use it to build video ad creative.

Buyers project GenAI creative will reach 40% of all ads by 2026, with small and mid-tier brands (SMBs) adopting it faster than the largest brands. SMBs are tapping into GenAI's ability to help them create high-quality digital video ads quickly, affordably, and at scale, bypassing the need for large teams or expensive production – capabilities that were once exclusive to bigger brands.

Advertisers are also using GenAI creative enhancement capabilities to create versions for different audiences (42%), visual style changes (38%), and contextual relevance (36%).

"Marketers are increasingly looking for partners that not only provide access to GenAI solutions but also help them unlock its full strategic and creative potential," added Cohen.

Buyers Now Expect Half of CTV Inventory to be Biddable, but Automation Does Not Mean Buying is on Cruise Control

Buyers expect 47% of CTV inventory to be biddable, up from 34% last year. Three out of four (74%) have built or are planning to build internal teams to manage self-serve CTV activation in-house.

While CTV has a bigger role, buyers are demanding more. Buyers want more options and more controls on inventory.

With the rise of live content on streaming platforms, 60% of buyers expect more from these platforms than linear TV. One-third want unique interactive experiences and real time data.

"Buyers are excited about sports and other live content coming to streaming," said Chris Bruderle, Vice President, Industry Insights & Content Strategy, IAB. "They expect to see new and better capabilities than they can get in linear." 

When activating CTV programmatically, more than 80% of digital video buyers want human assistance from their sell-side partners. For CTV platforms offering self-serve activation tools, this underscores the ongoing need to continue to engage directly with buyers. 

"Being available programmatically is table stakes. Being a strategic partner who delivers ideas and results is becoming what's vital to win ad spend," added Jamie Finstein, Vice President, Media Center, IAB. "As digital video democratizes advertising for small and mid-sized businesses, many of these brands struggle with measurement complexity, standardization, cross-channel data, and scalability."

Buyers Are Focusing on Business Outcomes

CTV is rapidly closing the gap with social video as a performance-driving channel. Buyers now hold both to similar expectations for driving business outcomes, including sales and offline store visits. With this year's economic uncertainty — tariffs, geopolitical conflict, and shifting consumer sentiment — these outcomes have become even more critical.

Advertisers have always wanted results, but increasingly — especially in CTV — they are demanding them right now.

Bruderle concluded, "Driving bottom-funnel business outcomes is now far and away the most important KPI for video buyers. Deliver, or you'll get cut."

According to the report, digital video buyers stated the top reason they reduce or remove spend with streaming partners is failure to deliver business outcomes.

The IAB 2025 Digital Video Ad Spend & Strategy Full Report can be accessed here. The report was released on July 15 during the IAB Media Center's Video Leadership Summit.

About IAB
The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and collaboration of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

About Advertiser Perceptions
Advertiser Perceptions is the leader in providing research-based strategic market intelligence to the complex and dynamic media, advertising, and ad tech industries. Our curated, proprietary Ad PROS™ Network and deep relationships with the largest advertisers provide clients with an unbiased view of the market, their brand, and the competition. Our experts provide timely and actionable guidance enabling clients to improve their products and services, strengthen their brands, and drive more revenue. The largest, most innovative global media and ad technology businesses rely on Advertiser Perceptions.

About Guideline
Our mission is to redefine the future of the world buys and sells media.
We combined the leading media planning and data companies to create the world's most trusted set of solutions to help shape mission-critical advertising decisions. Though we already provide guidance to the world's leading brands, agencies, and media owners; we are just getting started.

We are busy innovating, expanding existing capabilities, and leveraging AI to offer automated, intelligent solutions to age-old industry processes.

As the industry leader, 25 out of the world's 30 largest brands and 9 of the top 10 most valuable global media owners rely on our solutions. Guideline provides critical data to the largest media measurement companies, demand-side platforms, and institutional investors. We partner with all six of the biggest agency holding companies, as well as several of the largest independents, analyzing over $150 billion in annual media spend globally.

SOURCE Interactive Advertising Bureau (IAB)