Nearly 90% of digital video ad buyers are jumping on the GenAI bandwagon for creating ads. By 2026, it's not even gonna be a choice anymore. It's happening. Right now, 30% of digital video ads are AI-created or improved. Next year? 39%. The train has left the station.
Small and mid-tier brands aren't waiting around. They're adopting this tech faster than their bigger counterparts. Like, way faster. About 45% of small spenders expect to use AI for their ads by 2026, while only 36% of the big spenders are on board. Interesting, right? The giants are dragging their feet. With AI daily usage reaching 75% among workers, the shift toward AI-powered advertising seems inevitable.
The underdogs are sprinting ahead while Goliaths watch from the sidelines. By 2026, the advertising field won't recognize itself.
Digital video isn't playing games with its dominance. It's projected to grab 58% of all TV and video ad spend in 2025. That's $72 billion, up 14% from last year. CTV specifically? Growing 13% to $26.6 billion. Money talks.
What's funny is how this whole thing is democratizing advertising. Suddenly everyone can play. Production costs? Down. Accessibility? Up. The little guys can ultimately compete without breaking the bank. Must be terrifying if you've built your brand on expensive, glossy productions.
The use cases are pretty slick. About 42% of advertisers are using AI to create multiple versions of ads for different audiences. Another 38% are using it to make style changes. Test, iterate, optimize. Rinse, repeat, profit.
The major platforms know what's up. Meta, Google, Amazon, TikTok – they're all integrating AI video creation tools. TikTok's even offering automated translations now. Convenient.
But here's the kicker – big brands are slow-walking adoption. They've got complex workflows, rigid brand standards, concerns about control and safety. Meanwhile, the AI train keeps accelerating. Integration challenges? Sure. Regulatory concerns? Of course. Advertisers are particularly concerned about content quality when placing their ad spend, with 43% ranking it as their top criterion.
But while they're figuring it out, their smaller competitors are already running laps around them. Adapt or get left behind. That's just how it goes in the digital wild west. These findings come from IAB's 2025 Digital Video Ad Spend & Strategy Report, highlighting the transformative impact of generative AI.