
Powered by sports and other live streaming events,
digital video has overtaken linear TV as the dominant media buy heading into this upfront season. That's the top line of an Interactive Advertising Bureau (IAB) analysis of data from ad spending
tracker Guideline, and ad industry B2B sentiment researcher Advertiser Perceptions.
The report -- part one of the IAB's 2025 "Digital Video Ad Spend & Strategy Report" -- projects
digital video will capture nearly 60% of total TV/video ad spending this year. That's more than double what the IAB estimates digital video's share was just five years ago.
The analysis
projects U.S. digital video ad spending will top $72 billion this year, up 14% from 2014's $64 billion, led by an acceleration of spending by CPG, retail and pharma marketers.
Importantly, the
growth is not just being accelerated by big brands, but also is being fueled by small and mid-size advertisers tapping into the burgeoning marketplace of self-serve, programmatic CTV advertising
platforms.
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The IAB's projections may seem bullish given the overall downturn in total U.S. ad spending to date, and continuing geopolitical and macroeconomic uncertainties, and bureau CEO
David Cohen acknowledges those caveats, noting, "It is important to acknowledge that ongoing economic uncertainty, including tariffs, geopolitical conflicts, and changing consumer confidence, the
marketplace in 2025 is more difficult to predict than ever before."
In other words, as much as the analysis forecasts continuing digital video ad spending momentum, anything can happen, but
the medium seems like the safest bet and surest hedge in terms of media planning.
Among the study's other findings are that all three components of digital video -- CTV,
social video, and online video -- are driving the overall channel’s trajectory, with each posting double-digit growth:
Digital Video Category | Ad Spend in 2023 | Ad Spend in 2024 | YoY Growth (2024 vs.
2023) | Projected Ad Spend in 2025 |
CTV | $20.3B | $23.6B | 16% | $26.6B |
Social Video | $19.5B | $23.7B | 21% | $27.2B |
Online Video | $14.2B | $16.6B | 17% | $18.6B |