TLDR: A new report from IAB Europe indicates that 85% of companies in the digital advertising sector are now utilizing AI-based tools for marketing, with a significant focus on targeting and content generation. Despite strong investment confidence, the study identifies privacy concerns and a lack of internal expertise as major barriers, alongside inconsistent governance frameworks.
Brussels, Belgium – September 18, 2025 – IAB Europe, the leading European industry association for digital advertising, has released its inaugural Pan-European Impact Report on the Impact of AI on Digital Advertising. The comprehensive study reveals that Artificial Intelligence is no longer an emerging technology but a foundational element within the industry, with a staggering 85% adoption rate among companies for marketing purposes.
The report, which surveyed nearly 100 advertisers, agencies, ad tech companies, and publishers across various European markets, underscores a robust confidence in AI’s future. Approximately three-quarters of respondents expressed intentions to either maintain or increase their current AI investments, signaling its critical role as a growth catalyst.
Key applications of AI in digital advertising are predominantly in targeting (64%) and content generation (61%). While ad tech firms and agencies are reporting clear benefits in key performance indicators (KPIs) from AI adoption, publishers are exhibiting more caution, with less than a third noting increases in CPMs.
However, the widespread adoption is not without its challenges. The study highlights significant inconsistencies in governance and guidance. While 68% of companies have general internal AI guidelines, only 43% have specific frameworks for marketing and advertising. Furthermore, only a third of companies receive buy-side guidelines on AI, and in many organizations, governance is either informal or centralized under a single lead.
Privacy emerges as the paramount concern across the ecosystem regarding AI’s use in digital ad campaigns. The lack of internal expertise and adequate training also stands out as a critical impediment to broader adoption, with differing opinions on the ethical use of user data for training AI models.
Looking forward, the industry shows a strong interest in new AI-driven opportunities, with over 80% of respondents keen on buying or selling ad space on consumer-facing AI platforms, such as large language model (LLM)-based chatbots.
Dimitris Beis, IAB Europe’s Data Analyst & Sustainability Lead, commented on the findings, stating, “The digital advertising ecosystem is on the hunt for AI opportunities, both in terms of innovative technologies and new contact surfaces with users. The findings show that adoption in both predictive and generative use cases is widespread, but barriers such as shortages in expertise still need to be addressed. The ecosystem is dealing with questions old and new on issues ranging from privacy to governance, highlighting both that it has been underpinned by machine learning for decades and that new capabilities have transformative potential.”
Wayne Tassie, Group Director NL at DoubleVerify and Chair of IAB Europe’s Advertising & Media Committee, added, “AI is beginning to reshape the foundations of digital advertising, with the majority of companies already using it in some capacity to finesse targeting and accelerate content generation. By streamlining processes, enhancing scale, and driving performance, AI is unlocking new work streams across the ecosystem. Yet gaps remain; governance and expertise are inconsistent, demand guidance is limited, and privacy stands out as the number one concern. IAB Europe’s report underscores the urgent need for clear frameworks, ongoing training, and responsible deployment. By addressing these challenges, AI can become an organic part of daily workflows and unlock a new era of efficiency, creativity, and sustainable growth for our industry.”
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The report’s insights will directly inform the priorities of IAB Europe’s AI Working Group, which aims to foster responsible and effective AI adoption within the industry.
