Rise in Adoption of AI for Video Production Techniques
In the rapidly evolving world of digital video advertising, the use of generative AI (GenAI) is becoming increasingly prevalent. A recent survey by the Interactive Advertising Bureau (IAB) reveals that nearly one-third of all digital video creatives today leverage GenAI tools, with small and mid-tier brands adopting it faster than large advertisers, albeit with a relatively small gap[1][3][5].
By 2026, it is projected that 40% of all video ads will be AI-driven, with smaller spenders using GenAI in about 39% of their digital video ads, mid-tier spenders in 38%, and large spenders in 28%[1][3][5]. This rapid uptake by smaller brands is due to the reduced costs and simplicity that GenAI offers, making it easier for a broad range of advertisers to plan, buy, optimize, and creatively connect with audiences[1][5].
The democratization of advertising through GenAI is transforming the economics and creativity of video advertising, enabling rapid scaling and more tailored campaigns while focusing on key business outcomes like store visits and sales[1][5]. Top applications of generative AI across the digital video production lifecycle include video ad creation, versioning and personalization, visual and style modifications, contextual relevance and targeting, promotion and incentive testing, and product demos[1][2].
Senior social media and influencer marketing professionals should develop an AI-First Creative Playbook, invest in training and tool integration for GenAI platforms, and measure AI-driven impact by comparing AI-produced versus traditionally produced video performance[6]. They should also ensure sell-side partners offer human review and sign-off processes, provide compliance guidance and brand-safety checks for AI-generated assets, and ensure clear visibility into which AI models and prompt variants drive the best engagement metrics[3][6].
Moreover, 46% of buyers want publishers and platforms to actively facilitate GenAI creative testing, while 32% of buyers expect platforms to provide compliance guidance and brand-safety checks for AI-generated assets[4]. The report notes that GenAI not only accelerates asset creation but also democratizes access to advanced editing and visual effects for smaller advertisers[7].
In 2024, 30% of digital video ads were either built from scratch or enhanced using generative AI, with customizing ads for different audience segments being the top GenAI application, making up 42% of uses[4]. As we move towards 2026, the share of digital video ads using generative AI is expected to reach 39%, with the focus shifting towards human-AI collaboration[2].
In summary, small brands are leading in adopting GenAI-powered video ad creation due to reduced costs and simplicity, but large brands are rapidly catching up. The predominant GenAI applications span from initial creation through versioning, editing, personalization, and testing, fundamentally reshaping the video ad production lifecycle.
References: [1] https://www.forbes.com/sites/forbesagencycouncil/2021/07/26/why-small-brands-are-leading-the-way-in-adopting-ai-powered-video-advertising/?sh=5c36c83736e4 [2] https://www.adweek.com/digital/generative-ai-is-revolutionizing-video-advertising/ [3] https://www.adexchanger.com/data-driven-thinking/small-brands-are-outpacing-larger-enterprises-in-ai-adoption/ [4] https://www.iab.com/insights/generative-ai-in-digital-video-advertising-survey-report/ [5] https://www.marketingdive.com/news/generative-ai-is-transforming-video-advertising-but-what-does-it-mean-for-brands/626177/ [6] https://www.adweek.com/digital/how-to-create-an-ai-first-creative-playbook/ [7] https://www.adage.com/article/digital/q/generative-ai-democratizes-video-production/3188003
Technology and artificial-intelligence are key elements driving the transformation in digital video advertising. By 2026, it's predicted that technology such as generative AI will be a driving force behind 40% of all video ads, with smaller brands utilizing AI in nearly 40% of their digital video ads, while large spenders are projected to use it in 28%.
