Digital Video To Claim 58% Of TV Ad Market In 2025 Amid Surge In CTV

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Digital video advertising in the U.S. is projected to reach a record $72.4 billion in 2025, according to a new report from the Interactive Advertising Bureau (IAB), continuing its rapid ascent as the dominant force in the TV/video ad market. The report forecasts that digital video -- including connected TV (CTV), social video and online video -- will account for 58% of total TV and video ad spending this year, more than double its share from five years ago.

This milestone follows a pivotal year in 2024 when digital video ad spend rose 18% to $64 billion, officially surpassing linear TV for the first time. The growth was driven by its ability to deliver interactive, personalized and shoppable experiences across platforms and devices -- qualities that align with shifting consumer habits and brand demands.