The digital advertising landscape is evolving faster than ever, and video ads continue to dominate the conversation. Ahead of the IAB NewFronts 2025, new data reveals significant shifts in ad spend, showing just how central video content has become to modern marketing strategies.
Table of Contents
- Digital Video Ad Spend Has 52% US Market Share
- Social Video And CTV Projected To See Double-Digit Ad Spend Growth
- CPG And Retail Will Be The Fastest Growing Categories Of Digital Video In 2025
- To Keep Ahead, Cover All The Events At IAB
Digital Video Ad Spend Has 52% US Market Share
Digital video ad spending has officially surpassed the halfway mark of total digital ad investments in the U.S., claiming a 52% market share. This milestone highlights the shift in consumer engagement from static content to immersive video experiences.
Brands are prioritizing video not only for awareness but also for conversion-driven campaigns. This rise is driven by the popularity of mobile devices, increased broadband accessibility, and the dominance of video content across all major platforms.
Key contributors to this growth:
- Pre-roll and mid-roll video ads on platforms like YouTube and Facebook.
- Branded video content on owned media channels.
- Paid video ads on retail and eCommerce networks.
Social Video And CTV Projected To See Double-Digit Ad Spend Growth
Social video platforms and connected TV (CTV) are the two segments expected to grow at double-digit rates in 2025. Platforms like TikTok, Instagram Reels, and YouTube Shorts are proving to be highly effective in reaching younger demographics.
CTV, on the other hand, is offering advertisers measurable and highly targeted ad placements. With consumers cutting the cord on traditional cable and embracing streaming, advertisers are following suit.
Growth expectations for 2025:
- Social video ad spend to grow by over 18%.
- CTV ad spend to increase by 20%+, driven by audience targeting and real-time metrics.
This trend signals a new era where programmatic advertising and AI-driven creative optimization become essential to campaign success.
CPG And Retail Will Be The Fastest Growing Categories Of Digital Video In 2025
Among all verticals, Consumer Packaged Goods (CPG) and Retail are projected to be the fastest-growing spenders in digital video ads for 2025. These sectors are leaning heavily into short-form content and influencer marketing.
Reasons for growth:
- CPG brands are investing in storytelling and influencer-led content.
- Retailers are using video for dynamic product ads and virtual try-ons.
- Both industries benefit from video’s impact on consumer trust and brand recall.
We also see increased investments in shoppable video formats, making the journey from viewing to buying seamless.
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To Keep Ahead, Cover All The Events At IAB
For marketers looking to stay competitive, attending and analyzing the IAB NewFronts is non-negotiable. It’s the hotspot for announcements from major platforms and brands, showcasing new ad formats, targeting capabilities, and measurement tools.
Top benefits of covering IAB events:
- Spot emerging video ad trends early.
- Understand new monetization strategies.
- Build relationships with digital content leaders.
Make sure your marketing team tunes in to every keynote, workshop, and announcement to maximize your 2025 video ad strategy.
