TLDR: A new report from the Interactive Advertising Bureau (IAB) indicates that a significant majority, nearly 90%, of advertisers are set to leverage generative artificial intelligence (Gen AI) for creating video advertisements by 2025, marking a transformative shift in the industry.
NEW YORK – The landscape of video advertising is undergoing a rapid transformation, with generative artificial intelligence (Gen AI) emerging as a pivotal technology. According to the ‘2025 Digital Video Ad Spend & Strategy Full Report’ by the Interactive Advertising Bureau (IAB), released on July 15, 2025, a striking 86% of video buyers are either currently using or planning to use Gen AI for building video ad creative. This comprehensive report, developed in partnership with Advertiser Perceptions and Guideline, delves into the profound impact of Gen AI on ad production, advertiser demands for Connected TV (CTV) and live sports, and the increasing focus on business outcomes.
The report highlights that the transition of video advertising into its future is accelerating, with half of all advertisers already employing Gen AI for video ad creation. Buyers anticipate that Gen AI-generated creative will account for 40% of all advertisements by 2026. A notable trend is the faster adoption rate among small and mid-tier brands (SMBs) compared to larger brands. SMBs are capitalizing on Gen AI’s capacity to produce high-quality digital video ads swiftly, affordably, and at scale, democratizing capabilities that were once exclusive to larger enterprises requiring extensive teams or costly production.
David Cohen, CEO of IAB, emphasized this paradigm shift, stating, ‘The economics of advertising are being transformed. As the costs of production fall, the opportunities for advertisers multiply.’ He further added, ‘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.’ Beyond creation, advertisers are also utilizing Gen AI for creative enhancement, including generating different versions for various audiences (42%) and adapting visual styles.
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This report, Part Two of the ‘2025 Digital Video Ad Spend & Strategy Full Report’ (Part One was released in April), underscores Gen AI’s rapid establishment as a cornerstone of video ad creation, fundamentally reshaping how campaigns are developed, tested, and scaled within the advertising industry.
