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.<\/p>\n
\u201cThe economics of advertising are being transformed. As the costs of production fall, the opportunities for advertisers multiply,\u201d said David Cohen, CEO, IAB. \u201cThe 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.\u201d<\/p>\n
GenAI Is How Video Ads are Being Created<\/strong><\/p>\n 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.<\/p>\n Buyers project GenAI creative will reach 40% of all ads by 2026, with small and mid-tier brands adopting it faster than the largest brands. SMBs are tapping into GenAI\u2019s 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.<\/p>\n Advertisers are also using GenAI creative enhancement capabilities to create versions for different audiences (42%), visual style changes (38%), and contextual relevance (36%).<\/p>\n \u201cMarketers are increasingly looking for partners that not only provide access to GenAI solutions but also help them unlock its full strategic and creative potential,\u201d added Cohen.<\/p>\n Buyers Now Expect Half of CTV Inventory to be Biddable, but Automation Does Not Mean Buying is on Cruise Control<\/strong><\/p>\n 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.<\/p>\n While CTV has a bigger role, buyers are demanding more. Buyers want more options and more controls on inventory.<\/p>\n 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.<\/p>\n \u201cBuyers are excited about sports and other live content coming to streaming,\u201d said Chris Bruderle, Vice President, Industry Insights & Content Strategy, IAB. \u201cThey expect to see new and better capabilities than they can get in linear.\u201d<\/p>\n 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.<\/p>\n \u201cBeing available programmatically is table stakes. Being a strategic partner who delivers ideas and results is becoming what\u2019s vital to win ad spend,\u201d added Jamie Finstein, Vice President, Media Center, IAB. \u201cAs digital video democratizes advertising for small and mid-sized businesses, many of these brands struggle with measurement complexity, standardization, cross-channel data, and scalability.”<\/p>\n Buyers Are Focusing on Business Outcomes<\/strong><\/p>\n 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\u2019s economic uncertainty \u2014 tariffs, geopolitical conflict, and shifting consumer sentiment \u2014 these outcomes have become even more critical.<\/p>\n Advertisers have always wanted results, but increasingly \u2014 especially in CTV \u2014 they are demanding them right now.<\/p>\n Bruderle concluded, \u201cDriving bottom-funnel business outcomes is now far and away the most important KPI for video buyers. Deliver, or you\u2019ll get cut.\u201d<\/p>\n 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.<\/p>\n The IAB 2025 Digital Video Ad Spend & Strategy Full Report<\/strong> can be accessed here. The report was released on July 15th during the IAB Media Center\u2019s Video Leadership Summit.<\/p>\n About IAB About Advertiser Perceptions<\/strong> About Guideline<\/strong> We are busy innovating, expanding existing capabilities, and leveraging AI to offer automated, intelligent solutions to age-old industry processes.<\/p>\n As the industry leader, 25 out of the world\u2019s 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.<\/p>\n IAB Media Contacts line-height: 20px;margin-top: 15px !important;margin-bottom: 15px !important;}<\/p>\n The post Nearly 90% of Advertisers will Use Gen AI to Build Video Ads, According to IAB\u2019s 2025 Video Ad Spend & Strategy Full Report appeared first on IAB.<\/p>\n![\"Nearly](\"https:\/\/www.iab.com\/wp-content\/uploads\/2025\/07\/nearly-90-of-advertisers-will-use-gen-ai-to-build-video-ads-according-to-iabs-2025-video-ad-spend-strategy-full-report-2-1024x576.jpg\")
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\n<\/b>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.<\/p>\n
\nAdvertiser 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![\"\u2122\"](\"https:\/\/s.w.org\/images\/core\/emoji\/15.1.0\/72x72\/2122.png\")
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.<\/p>\n
\nOur mission is to redefine the future of the world buys and sells media.
\nWe combined the leading media planning and data companies to create the world\u2019s most trusted set of solutions to help shape mission-critical advertising decisions. Though we already provide guidance to the world\u2019s leading brands, agencies, and media owners; we are just getting started.<\/p>\n
\n<\/b>Kate Dougherty \/ Brittany Tibaldi
\n551-265-2825 \/ 516-974-2216
\nkdougherty@kcsa.com \/ btibaldi@kcsa.com
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