Setting the Scene: What the Report Actually Says

On July 15, 2025, the IAB unveiled Part Two of its “Digital Video Ad Spend & Strategy Full Report,” built atop Advertiser Perceptions survey data. They revealed:

• 86% of video-ad buyers are now using—or planning to use—generative AI in their creative workflows.
• By 2026, GenAI is projected to account for ~40% of video ads—especially driven by small and mid-sized brands (SMBs).
• Top GenAI use cases include:
  • Audience versioning: 42% tailor ads per demographic segment.
  • Visual style tweaks: 38% adjust tone, color, or format.
  • Contextual relevance: 36% adapt creative based on time, weather, or event.

This isn’t aspirational—they’re already baking AI into how they scale, adapt, and deliver.

Why It’s Happening Now: The Forces at Play

Democratization of Content

David Cohen, CEO of the IAB, captured it best: “As the costs of production fall, the opportunities for advertisers multiply.”

What was once reserved for agencies or big studios is now accessible to growing teams. GenAI is turning scarcity into velocity.

CTV/Self-Serve Dynamics

• 47% of connected TV inventory is expected to become biddable, up from 34% a year ago.
• 74% of buyers already have or are building in-house CTV activation teams.
• These shifts fuel the need for fast-turn creative, and GenAI answers that call.

Outcome-First Measurement

CTV and digital video are now held to performance KPIs like sales and store visits. “Deliver—or you’ll get cut,” is the industry mantra.

With budgets tightening, AI isn’t a luxury—it’s operational necessity.

The 40% Surge Explained

eMarketer pegs that ~22% of video ads in 2024 were AI-assisted or generated, with projection to 39% by 2026. The gap between 86% of buyers and 39% of usage means many are planning ahead.

SMBs are ahead: 45% of their ads are expected to use GenAI, compared to 36% among large brands.

That difference is telling—they are lean, quick, and agile.

Use-Case Breakdown: How Teams Leverage GenAI

Let’s unpack what each high-use case actually looks like in operations:

A. Audience-Specific Versioning (42%)

• Example: A green-leaf brand creates “fitness-focused” and “wellness-focused” cuts of the same base ad, with tailored messaging.
• Most time-saving leverage: No reshoot needed, just text, tone, and b-roll tweaks.

B. Visual Style Tweaks (38%)

• Example: Same ad, but warm tone for Europe, cooler cut for tech audiences, holiday festive edit in December.
• Fast re-mooding without re-editing from scratch.

C. Contextual Relevance (36%)

• Example: Ad for an e-commerce sale that updates live according to local weather—sunny/daytime version vs. chilled/rainy version automatically selected.
• Especially powerful for real-time marketing without last-minute production stress.

Tool Tiering Against Strategy

Not all GenAI tools work the same way:

Modular GenAI Tools

• What they do: Generate scripts, visuals, voiceovers, or cut variations quickly.
• Best for: Quick tests, ideation, ad hooks, low-stakes or time-sensitive content.
• Limitations: Tool flakiness, format mismatches, need for post-polish.

Full-Suite Platforms (e.g., Rkive style)

• Capabilities: Auto-edit videos, subtitle, translate, and version for multiple lengths/formats.
• When to use: Scaling creative volume across markets, platform formats, or repackaging content efficiently.
• Edge: Preserve brand integrity and style across thousands of cuts.

Combine them: Use modular tools for early-stage testing, then leverage full-suite tech for rollout once concept proves out.

Role Shifts: AI as Amplifier, Not Replacer

Today’s creative director still needs to:

• Define narrative strategy, tone, and brand guardrails.
• Validate AI-generated edits or scripts before publishing.
• Patch in human energy—nuance, cultural empathy, brand authenticity.

In effect, AI handles grunt work; humans inject meaning.

SMB vs Enterprise: Adoption Pathways

SMBs:

• Lean orgs.
• Fast adopter: 45% expect AI by 2026.
• Use GenAI to level up without scaling headcount.

Enterprises:

• Legacy workflows, brand intrusions, compliance walls.
• Slower ramp (36% expectation).
• Require governance layers, quality control, sign-offs.

Both benefit—but pace differs.

Risks, Oversight & Ethical Dimensions

The report points to some challenges:

• Measurement complexity and lack of standardization can throw cold water on self-serve CTV gains.
• Human oversight remains asset: Over 80% still want human assistance when activating via programmatic.
• Screening for brand fit: Without governance, AI can veer off-brand—or worse.

Governance isn’t optional—it's the strategic multiplier.

Strategy Action Framework for 2025

a. Map by Campaign Type

• Quick-turn promos → modular AI prototypes
• Localized campaigns → full-suite scalable versions
• Hero launches → human-led with AI support

b. Tool Governance Dashboard

• Prompt logs
• Version review workflows
• Quality tagging & publishing metrics

c. KPI Integration

• A/B test hooks → CTR lift
• Regional variants → Conversion lift
• Seasonal overlays → Engagement shifts

Measure variation and incremental ROI.

d. Upskilling + Internal Ops

• Brief teams on AI tools
• Define CFO-ready success metrics
• Train creativity + controls (prompts, voice approval, asset auditing)

Reflections: What This Means for Creative Teams

GenAI doesn't erase creative jobs—it redefines them:

• More focus on strategy, insight, and emotional resonance.
• Less time wasted on edit checklists, format warping, or text overlays.
• Faster pathways from idea to multi-format rollout.

Creativity is shifting upstream—and that's a net win.

Outlook 2026: What’s Next?

• Catalog launches and evergreen content: AI powers cyclical refreshes at 10% of production cost.
• Real-time brand moment marketing: Event-aware overlays auto-inserted (weather, holiday, cultural beat).
• Distributed creative stacking: HQ creates assets; AI versions for global markets automatically.
• AI creative evaluation: Dashboards that suggest when a GenAI cut outperforms human baseline—turning creators into strategists.

Final Word

GenAI is now foundational in digital video. But wielded wisely, it fuels creativity; when misused, it just creates noise.

The playbook: Align tool choice with strategy, build robust governance, measure rigorously, and elevate human judgment—that's how AI becomes a force for creative amplification, not passive automation.

Read our articles Did YouTube Just Ban AI Content? The Real Story Behind the Viral Panic and Meta Follows YouTube: Facebook Cracks Down on Unoriginal Content to make sure your AI video content aligns with the platform's policies.

And check out Rkive AI for Editing to learn how you can leverage AI to produce organic content with your own footage.

Sources

• IAB. "Nearly 90% of Advertisers will Use GenAI to Build Video Ads." July 15, 2025. https://www.iab.com/news/nearly-90-of-advertisers-will-use-gen-ai-to-build-video-ads/

About the author

Alberto Luengo is the founder and CEO of Rkive AI, a leading expert in AI for content automation and growth. He shares real-world insights on technology, strategy, and the future of the creator economy.