Diving briefs:
- According to data from the Interactive Advertising Bureau (IAB), the majority of AD buyers currently use artificial intelligence (AI) to create digital videos. 30% of digital video ads are either built from scratch or strengthened using technology, and that number is expected to grow to 39% in 2026.
- Small and intermediate brands employ technology at higher rates. By 2026, small brands expect 45% of digital video to be developed using generated AI, while 42% of mid-sized brands expect the same. Large brands expect only 36% of digital video will be built using technology by the same year.
- Part 2 of IAB's 2025 Digital Video Advertising Expenses and Strategy Report Part 1 While expanding its growing role, Generative AI is played on digital video, increasing Connected TV (CTV) utilization.
Dive Insights:
According to the IAB's second part of digital video ad spending implemented in collaboration with advertisers' awareness and guidelines, generator AI continues to become a more important tool for marketers, especially small and medium-sized businesses.
In particular, the generator AI is used to create multiple versions of the same ad. Of the respondents who use or use the Generated AI, 42% aim to create different versions of the same video. Visual and styling changes (38%) and purification context association (36%) were some of the other top use cases cited.
The report also frequently looked into the location of CTVs in the digital video ecosystem, particularly as channels appear in rival social videos as “buys” for marketers. Buyers expect 47% of CTV stocks to be available for bids this year, starting at 34% in 2024. We expect that 41% of buyers will drive return on investment and advertising spending better while 35% will be more likely to achieve scale. According to the report, programmatic transactions account for around 85% of CTV purchases, jumping 10% points from last year.
“It's a table stakes to be programmatically available. Being a strategic partner that delivers ideas and results is becoming an essential part of winning advertising spend,” Jamie Finsstein, vice president of IAB's Media Center, said in a statement.
There are still many challenges to be faced with when it comes to CTV. Smaller spenders tend to experience problems at a higher speed compared to middle class and large spenders. For example, 38% of small spenders encounter measurement problems, 27% of middle class spenders and 31% of large spenders who say the same thing. Focusing on bottom hunnel metrics and lack of resources can exacerbate small brand issues, according to the IAB.
Furthermore, CTV is changing the relationship between media buyers and sellers. 83% of buyers say that human involvement is required to customize CTV transactions, while 74% plan to invest in internal resources to manage their self-service CTV platforms.
