Increased Embracement of Generative AI in Video Production Techniques
In the ever-evolving world of digital advertising, a significant shift has been observed over the past few years. The adoption of generative AI in digital video advertising has surged, particularly among small and medium-sized businesses (SMBs), according to the Interactive Advertising Bureau's (IAB) July 2025 Digital Video Ad Spend & Strategy report.
The report reveals that as of mid-2025, around 30% of digital video ads were either built or enhanced using generative AI. This proportion is expected to rise to 45% by 2026, with SMBs outpacing larger enterprises in AI adoption.
Content Creation Automation and Connected TV (CTV) Advertising are key areas where generative AI is making a significant impact. Generative AI helps create video content faster and at lower costs, enabling small brands to produce ads with quality comparable to larger competitors. The democratization of premium CTV ad spots, made possible by advances in generative AI and data-driven programmatic TV, has opened up new opportunities for SMBs.
The benefits for small brands are substantial. Generative AI offers cost and time efficiency, reducing the need for expensive production resources and shortening content creation cycles. This allows small brands to compete more effectively with limited budgets. Moreover, through automation and AI-driven tools, small and medium enterprises can now afford ad placements on connected TV, a segment that is growing rapidly.
The increased use of generative AI is also fostering more creative capacity and scale. AI amplifies creativity, enabling brands to generate more varied and engaging video content. This shift from experimental use to widespread adoption in digital video advertising, from 2023 to 2026, has fostered more inclusive participation by smaller brands due to efficiency gains and new media access.
Analysts attribute the rapid ascent of AI-driven creative workflows to speed & scalability, cost efficiency, and data-driven personalization. By 2026, 90% of buyers are expected to use or plan to use GenAI, with a strong emphasis on human oversight. The IAB's survey of 368 senior ad-spend decision-makers revealed that nearly one-third of all digital video creatives today leverage GenAI tools.
In conclusion, the adoption of generative AI in digital video advertising is reshaping the landscape, providing smaller brands with the tools they need to compete effectively and level the playing field. This trend aligns with broader growth in AI-driven media advertising investment and increasing algorithm-driven ad spend globally.
The report affirms that small and medium-sized businesses (SMBs) are increasingly utilizing generative AI to create video content more efficiently, with an anticipated rise from 30% to 45% by 2026. This trend in content creation automation is significantly impacting Connected TV (CTV) advertising, opening up new opportunities for SMBs and allowing them to produce ads of comparable quality to larger competitors.
The widespread adoption of generative AI in digital video advertising is not only fostering creative capacity and scale but also offering cost and time efficiency, making it possible for SMBs to afford ad placements on connected TV, a rapidly growing segment. By 2026, the majority of buyers are expected to employ GenAI, with a strong emphasis on human oversight, as the benefits of speed, scalability, and data-driven personalization become increasingly evident.
