Observed Signal · Feb 5, 2026 · Industry Report · Source: State of Streaming · Impact: 3/5 · Sentiment: Positive
Marketers Increase AI and CTV Spend; Execution Gap Looms
A Mediaocean report highlighted by State of Streaming (Feb 5, 2026) finds advertisers are increasing 2026 budgets for Connected TV (CTV) and AI-driven media, but a large “execution gap” caused by fragmented ad tech and siloed systems is preventing brands from realizing the value of those investments. The report states 63% of advertisers are boosting spend on CTV and digital video, and over half are increasing AI-driven media spend, while more than a third are reducing local and national TV budgets. More than half of advertisers name fragmentation as their top concern; while over 40% use AI for data analysis, fewer than 20% use it for campaign orchestration, and only one in ten report a truly unified ad tech stack. Nearly 40% now prioritize orchestration to integrate tools, a shift Mediaocean’s CMO Aaron Goldman argues will drive advantage.
The report signals a meaningful reallocation of ad budgets toward CTV and AI-driven media while exposing widespread ad-tech fragmentation and low orchestration maturity—issues that affect campaign effectiveness, vendor demand, and investment priorities across the advertising ecosystem.
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Key Takeaways & Evidence Grounding
- Mediaocean published a 2026 advertising outlook report cited by State of Streaming.
- 63% of advertisers are increasing budgets for CTV and digital video in 2026.
- More than half of advertisers are increasing spend on AI-driven media.
- Over one third of advertisers are pulling back from local and national TV.
- Only 10% of advertisers report having a truly unified ad tech stack; fragmentation is named the top concern by more than half.
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Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Mediaocean: Marketers Boost AI and CTV but Tech Lags
A Mediaocean 2026 Advertising Outlook report finds advertisers are shifting budgets toward Connected TV (CTV), digital video, social and AI-driven media, but face an "execution gap" caused by fragmented technology and poor data quality. The report cites that 63% of brands plan to increase CTV/digital video spend, social is slightly above 60%, and AI-driven media adoption exceeds 50%. While generative AI is viewed as the top consumer trend, only 43% of marketers use AI for high-level research and just 19% use it for campaign orchestration. Over 40% cite data quality and system-connection issues as major hurdles; 86% prioritize cross-channel orchestration but only ~10% have unified systems. Sustainability tracking is emerging (about one in six marketers).
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.
Advertisers Boost CTV Spend, Demand Better ROI
A March 2026 industry survey from Advertiser Perceptions and Premion finds most advertisers increasing Connected TV (CTV) budgets in 2026 — roughly seven in ten plan an average 17% spend rise. The report shows the increase is largely a reallocation from linear TV, search and social, with unified teams now controlling the majority of streaming budgets. Programmatic is slated to handle about half of CTV purchases, but buyers complain the ecosystem remains fractured, complicating reach measurement across platforms and walled gardens. As CTV becomes core to media plans, advertisers are demanding simpler activation, improved technology and clearer measurement to justify larger investments.
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