2025 Digital Video Ad Spend & Strategy Report (IAB U.S.)

May 02, 2025 1 minute read time

The 2025 IAB Digital Video Ad Spend & Strategy Full Report provides a lens into the U.S. TV/digital video market and offers guidance for buyers and sellers on how to position and differentiate their strategies based on the market opportunity.

Part one, released in April, covered general market trends and revealed that total U.S. digital video ad spend grew 18% YoY in 2024 to $64B and is projected to reach $72B in 2025, increasing two to three times faster than total media. Part two, released in July, dives deeper to reveal insights into how the digital video ad ecosystem is rapidly evolving into its next phase - powered by GenAI, precision targeting, and performance-driven KPIs.

Key insights from the full report:

86% of digital video buyers are using or plan to use GenAI to create video ads
CTV and social video are the top “must-buy” channels for advertisers in 2025.
Although content quality is the top criterion in digital video buys, failure to deliver outcomes is what limits deals with streaming partners.
Nearly half of CTV inventory is expected to be biddable.
As live content moves to streaming, buyers have higher expectations in the partnerships with the streaming platforms vs. Linear television.

Whether you’re a brand, agency, or platform, this report is designed to inform and inspire the market to seek innovation and solutions that will propel the fastest-growing channel in media to reach its full potential for both the industry and viewers.

If you’re an IAB New Zealand Member, you can download part one of the report here

Or download the full report below.