Around half of all United States advertisers use generative artificial intelligence to make video ads, according to a report by the Interactive Advertising Bureau (IAB).
In total, 86% of buyers surveyed are using or planning to use AI to create video advertisements, with 51% already incorporating the technology. Buyers also projected that 39% of all advertising would be AI-based by 2026.
“The economics of advertising are being transformed. As the costs of production fall, the opportunities for advertisers multiply,” said IAB CEO David Cohen.
“The pool of potential advertisers is growing, as it is easier than ever to plan, buy, optimise and creatively connect with consumers utilising new technologies across all forms of media.”
Roughly 30% of U.S. advertisements are built with or enhanced by generative AI, buyer respondents said.
Among advertisers, 42% use AI to alter ads for different audiences, and 38% use these tools to change an advertisement's visual style.
Small and mid-tier brands use AI in their ads more frequently. Around 45% of ads from small spenders will be made with AI in 2026, compared with 36% from large spenders.
Buyers are also increasing their focus on internet-connected television and digital video advertising, according to the report.
Advertising spending on digital video in the U.S. rose by 18% in 2024 to reach US$64 billion. Spending will grow by 14% in 2025, the report projected, and will represent 58% of total television and video ad spending.
