Nearly 40% of video ads will use genAI by 2026, says IAB

The news: 22% of video ad creative was either built or enhanced using generative AI in 2024—a figure expected to nearly double (39%) by 2026, according to the IAB’s newly-released 2025 Digital Video Ad Spend Report.

  • Smaller advertisers are leading this shift; they expect 45% of their videos will incorporate genAI by 2026.
  • Nearly nine in ten buyers have either adopted genAI or plan to do so, with its use skewed toward affordable, scalable creative that meets performance goals.
  • Top reasons for using genAI include tailoring ads for specific audiences (42%), modifying visual styles (38%), and optimizing contextual fit (36%). A third of marketers also use it to test incentives, localize content, or adapt to device types.

Zooming out: Major platforms are fueling the demand for genAI video.

  • Meta recently expanded its Advantage+ suite with image-to-video tools and brand-consistent automation, claiming a 22% ROAS improvement.
  • TikTok launched Symphony tools that turn prompts or images into native short-form videos. The new features are now integrated into Adobe Express and WPP’s creative systems.
  • YouTube introduced automated tools to animate static assets and scale video personalization using product catalogs.
  • Amazon reported a 30% lift in click-through rates on genAI-generated video ads and is now testing video placements in its Rufus AI chatbot.

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