Samarth I Digital video ad spending is projected to reach $72.4 billion in 2025, capturing nearly 60% of total TV/video ad budgets, per IAB’s latest report.
In a significant shift within the advertising industry, digital video ad spending is forecasted to grow by 14% in 2025, reaching $72.4 billion, according to the Interactive Advertising Bureau (IAB). This growth positions digital video to capture nearly 60% of total TV and video ad expenditures, up from 51% in 2024, signaling a continued decline in linear TV’s dominance.
The IAB’s “2025 Digital Video Ad Spend & Strategy Report” highlights that Connected TV (CTV), social video, and online video are the primary drivers of this growth. CTV ad spend is expected to rise by 13% to $26.6 billion, while social video is projected to increase by 15% to $27.2 billion. Online video is anticipated to grow by 12% to $18.6 billion. These figures reflect a broader trend of advertisers re-allocating budgets from traditional media to digital platforms that offer targeted, measurable, and scalable solutions.
Notably, the consumer packaged goods (CPG) sector is projected to lead digital video ad spending with $14.3 billion in 2025, a 13% increase from the previous year. Retailers and pharmaceutical companies are also expected to boost their digital video investments by 18% and 19%, respectively. This shift underscores the growing confidence in digital video’s ability to deliver personalized and engaging content to consumers.
The report also indicates that 68% of advertisers consider CTV a “must-buy” in their media plans, reflecting its rising importance in reaching audiences who have migrated to streaming platforms. The expansion of programmatic advertising and self-serve tools has further facilitated this transition, enabling brands of all sizes to participate in the digital video ecosystem.
