IAB Says Video Ad Spending Set To Surge Past $80 Billion In 2026.

The Interactive Advertising Bureau projects U.S. digital video ad spending will total $81.9 billion in 2026, an 11% increase year over year. The forecast growth rate, which outpaces the projected gains in the total ad market by nearly 20%, will mean that more than 60% of dollars spent on television or video will go toward digital.

The growth rate is about half the size of the post-COVID acceleration, but the IAB says that reflects market normalization as the segment continues to mature with digital spending overall. It also acknowledges there are new macroeconomic factors creating additional ad spend headwinds.

“The signals from the marketplace are loud and unambiguous,” said David Cohen, CEO of the IAB. “Marketers demand performance, and they are counting on all forms of digital video, powered by both the Hollywood and creator economies, to deliver.”

The new data was revealed in part one of the just-released 2026 IAB Digital Video Ad Spend & Strategy Report. It says powering the growth is greater investment from small spenders as the number of them investing in CTV has increased from 60% in 2024 to 85% in 2026 with self-serve platforms lowering the entry barrier.

CPG is by far the biggest source of digital video ad dollars. IAB predicts $16.9 billion will be spent by the category this year, a 13% increase on a year-over-year basis. Retail, at $9.4 billion, ranks second, followed by tech ($7.5B), pharma ($7.4B), and entertainment ($7.4B). IAB points out they are categories where high consideration and frequency make digital video’s cross-screen reach especially effective. One area where digital video ads are in reverse is automotive. The data shows auto companies will spend $4.9 billion on digital video ads this year, but if that forecast holds up it will be a 2% decline from 2025. IAB blames elevated prices and interest rates, a softening job outlook, and tariff pressures for the softening spending.

To fund digital video, the IAB survey finds that 54% of marketers are shifting money out of broadcast television. And four in ten are shifting dollars out of other traditional. But podcast and digital audio are also under scrutiny, according to the report, which says 23% are moving budget from digital audio to pay for digital video. Some of that likely reflects advertisers following podcasters over to their newly launched video episodes.

The report, developed in partnership with Advertiser Perceptions and Guideline, reveals nearly all digital video buyers are already leveraging artificial intelligence or have a near-term plan as agentic AI for digital video is quickly moving from experimental to operational. The data shows that two-in-three buyers are live (21%), testing (20%), or planning to use (25%) agentic AI for digital video campaigns in 2026. With another 28% actively investigating, nearly all digital video buyers are in-market or on a near-term activation path.

Adoption varies by advertiser size as small and mid-size spenders are taking a different innovation approach to AI than larger spenders. Smaller spenders are said to be leaning into AI for creative testing, pre-planning, and performance analysis. But larger spenders, running large campaigns with many deal types and partners, are more focused on inventory discovery and evaluation.

“AI is increasingly becoming part of every stage of the video value chain where it meaningfully improves how planning, buying, and measurement work,” said Jamie Finstein, VP of the IAB Media Center. “By 2026, that influence is already widespread, and its role will only continue to deepen as the industry evolves.”