How AI Is Transforming Digital Video Ads: Over Half of Marketers Now Using Generative Technology

The advertising industry is witnessing a major shift as generative artificial intelligence becomes the new standard for video creation. According to the Interactive Advertising Bureau's latest findings, over half of ad buyers are already using AI tools for digital video production.

Currently, 30% of all digital video ads are created or enhanced using generative AI, with that number projected to reach 39% by 2026. This represents a significant transformation in how marketers approach video content creation.

Smaller Brands Leading the AI Revolution

The adoption patterns reveal an interesting trend: smaller companies are embracing AI technology faster than their larger counterparts. By 2026, smaller brands expect 45% of their digital video content to use generative AI, while mid-size brands project 42% adoption. Large brands lag behind at just 36%.

Top AI Applications in Video Advertising

Marketers are using generative AI for several key purposes:

• Audience customization: 42% create different versions of the same video for various target groups
• Visual enhancement: 38% focus on visual and style modifications
• Context optimization: 36% refine content for better contextual relevance

Connected TV's Growing Influence

The report also highlights the rising importance of connected TV (CTV) advertising. Programmatic CTV transactions now account for 85% of all CTV purchases, jumping 10 percentage points from last year. Buyers expect 47% of CTV inventory to be available for bidding in 2025, up from 34% in 2024.

However, smaller advertisers face more challenges with CTV measurement, with 38% reporting issues compared to 27% of mid-tier and 31% of large spenders.

As Jamie Finstein from the IAB noted, success in this evolving landscape requires being more than just programmatically available—brands must become strategic partners who deliver measurable results.

Read the full article on Marketing Dive