Observed Signal · Jul 14, 2026 · Market Report · Source: https://martech.org/feed/ · Impact: 3/5 · Sentiment: Positive
Digital video enters new era of competition
IAB’s “2026 Digital Video Ad Spend & Strategy Report” finds U.S. digital video ad spending is forecast to reach $81.9 billion in 2026, growing 11% this year and representing 61% of all U.S. TV and video ad spending. The report highlights three trends: targeting has become the top buying priority, social video is outpacing connected TV in buyer preference and spend momentum, and agentic AI is being adopted as an operational tool (used for planning, testing and analysis) while not yet entrusted with spending decisions. IAB projects social video spending of $31.9 billion versus $29.3 billion for connected TV. The findings are based on Guideline billing and forward-booking data, market estimates, industry interviews and a survey of 360 agency and brand decision-makers conducted Feb. 20–March 13, 2026.
The IAB report quantifies a major spending shift toward digital video (61% of TV/video spend) and shows social video overtaking CTV while documenting operator adoption of agentic AI — findings that affect media planning, measurement, and buy-side strategy across the industry.
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Key Takeaways & Evidence Grounding
- U.S. digital video ad spending is expected to reach $81.9 billion in 2026 (IAB).
- Digital video is projected to grow 11% in 2026 and, for the first time, account for 61% of all U.S. TV and video ad spending.
- IAB projects social video spending will reach $31.9 billion in 2026, compared with $29.3 billion for connected TV.
- Two-thirds of buyers are already using, testing, or planning to use agentic AI for digital video campaigns this year; another 28% are actively evaluating it.
- The report is based on Guideline billing and forward-booking data, market estimates, interviews, and a survey of 360 agency and brand advertising decision-makers conducted between Feb. 20 and Mar. 13, 2026.
Connected Companies & Entities
3 Entities mapped“according to IAB’s “2026 Digital Video Ad Spend & Strategy Report.”...”
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“OpenAI is testing multi-advertiser placements in ChatGPT while adding new targeting and campaign tools that expand its ad platform....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Digital Video Ad Spend Rises as AI and Targeting Accelerate
The Interactive Advertising Bureau (IAB) projects U.S. social video ad spending will grow 13% in 2026, outpacing connected TV (CTV) growth projected at 11%, signaling a shift toward feed-based platforms. The IAB’s findings — based on a survey of 360 U.S. marketers who spent at least $1M last year — estimate total U.S. digital video spend reaching $80 billion in 2026. Industry sources cited falling production costs from generative-AI creative tools, stronger targeting capabilities for smaller advertisers, and rising user video consumption (Meta reported an 8% rise in video watch time in Q1 2026; YouTube ad sales rose 10.7% to $9.88B) as drivers. While CTV continues to grow, programmatic CTV and quality adjacencies remain meaningful draws; nearly half of surveyed brands (49%) named targeting capability as their top investment criterion, up 23% year-over-year. The article includes quotes from agency and brand executives describing budget shifts from CTV to social video.
Digital Video to Capture 61% of US TV/Video Spend
VideoWeek’s Week in Charts summarizes multiple industry reports showing a continued structural shift toward digital video and rising AI use in video production. IAB projects digital video will account for 61% of US TV/video ad spend in 2026, up but growing more slowly than last year. iSpot research finds streaming partners are sharing more reach and frequency and demographic data but offer less visibility on attribution, programming and linear/streaming overlap. EMARKETER and Admazing report over 70% of US marketers rarely consider mobile gaming a core channel despite many seeing incremental reach potential. Wistia data shows increasing adoption of generative AI for video—69% using AI captions, 39% AI visuals and 25% AI avatars (2025 vs 2024). The piece also highlights sector stock moves, including LiveRamp/ Publicis M&A news and Nexxen revenue-driven gains.
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