Digital advertising on video platforms to grab a whopping 58% portion of the TV/video ad market budget by 2025, predicts IAB.
HOLY COW, BABY, THE REBIRTH OF ENTERTAINMENT ONLINE!
New York City—Hold onto your socks, folks! The explosion of live events, sports, and self-serve advertising tools on streaming platforms is making Connected TV (CTV) hotter than a pepper sprout! According to fresh data from the IAB, ol' CTV saw a whopping 16% year-over-year (YoY) growth in 2024, reaching a mind-blowing $23.6 billion.
And get this—by 2025, the IAB reckons digital video advertising will snatch a whopping 58% of the TV/video ad spend, climbin' all the way up to $72 billion! That's double its share from only five years ago, fo' shizzle!
Now, linear TV's gonna have to gnaw on a knife and fork and enjoy a nice, deep humble pie, 'cause its share is goin' down the drain to 42%. Back in 2024, when digital video advertising first surpassed linear TV, it had a mighty 48% share, but 2025 ain't gonna be no picnic either for our good ol' buddy linear TV.
David Cohen, CEO of IAB, said, "2024 was a game changer for digital video advertisin'. With top-notch content move-in' to the streamin' world, tech innovations, and a floodin' of new inventory, both consumers and advertisers feel the love for CTV, baby."
The IAB's 2025 Digital Video Ad Spend & Strategy Report: Part One, now in its twelfth year and developed with Advertiser Perceptions and Guideline, gives us a juicy overview of the U.S. digital video marketplace across CTV, social video, and online video, showin' where ad dollars are flowin' and why.
These findings underscore a shift in momentum 'cause digital video is expected to capture 58% of total TV/video ad spend in 2025, ya hear? This growth builds on that major turning point in 2024 when it surpassed linear TV for the first time. Ad spending climbed an impressive 18% in 2024 to $64 billion and is projected to grow another 14% in 2025, reachin' $72 billion, near about!
Cohen added, "The video industry is lock-step on a dizzyin' shift towards streamin', stirred by content, creators, tech, and improvin' measurement. But don't get too comfortable, 'cause the marketplace in 2025 is the wild west thanks to tariffs, global conflicts, and a-changin' consumer confidence."
CTV and social video are the hot new kids on the block, sittin' pretty as core pillars of a brand's comprehensive media strategy, and advertisers is movin' in on them like never before, not just for the scale, but for the precise targetin', measurin' performance, and drivin' real business outcomes they can offer.
And guess what? More categories are jumping on the digital video ad spend bandwagon, too, connectin' with consumers where they're watchin' content the most. In 2025, most major categories are boostin' their digital video ad budgets by double-digits, with CPG, retail, and pharma leadin' the charge.
Another exciting find is that CTV ain't just for big-budget brands anymore. Small and mid-size businesses are stealin' the show, thanks to the rise of programmatic self-serve tools. In 2025, most of the cash flowin' into CTV is comin' from reallocations—primarily from linear TV, social media, and other digital channels.
You can get a glimpse of all this and more in the IAB "2025 Digital Video Ad Spend & Strategy Report: Part One," which you can access right here. Part two of the report, droppin' on July 14th during the IAB Media Center's Video Leadership Summit, will focus on strategies behind these growth rates.
So, hang onto your hats, folks, the future of entertainment looks brighter than ever, and there's no tellin' where it's gonna take us next!
[1] Connected TV is a significant portion of the total digital ad spend[2] Digital video is expected to surpass linear TV in ad spend in 2025[3] The growth of digital video advertising is promising for better engagement and outcomes[4] CTV ad spend reallocation from linear TV, social media, and other digital channels[5] Digital video growth is fueled by sports and live events streaming
- The growth in Connected TV (CTV) advertising, with its 16% year-over-year increase in 2024, is a significant portion of the total digital ad spend.
- In 2025, digital video is expected to surpass linear TV in ad spend, capturing a whopping 58% of the TV/video ad spend.
- The growth of digital video advertising presents promising possibilities for better engagement and outcomes for both consumers and advertisers.
- Reallocation of ad spend from linear TV, social media, and other digital channels is driving the growth of CTV ad spend in 2025.
- The surge in digital video advertising is fueled by the increasing popularity of sports and live events streaming.
