Digital Video now accounts for almost 60% of US ad market

A RESURGENCE in live events and sports programming on streaming platforms, coupled with the expansion of self-serve and programmatic ad tools, helped Connected TV grow by 16% in 2024, according to US based trade body the IAB.

The figure featured in the IAB’s 2025 Digital Video Ad Spend & Strategy Report: Part One. Now in its 12th year, the report provides a comprehensive snapshot of the US digital video marketplace across CTV, social video, and online video.

IAB’s David Cohen

David Cohen, CEO, IAB, said: “2024 was a pivotal year for digital video advertising. With high-quality content moving to streaming, advancements in advertising technology, and an influx of new inventory accelerated growth for both consumers and advertisers, CTV is making it clear it’s a go-to channel for both viewers and advertisers and is expected to continue growing along with social video and online video.”

This year’s findings underscore a clear shift in momentum as digital video is expected to capture nearly 60% of total TV/video ad spend in 2025, double its share from just five years ago. This growth builds on a major turning point in 2024, when it surpassed linear TV for the first time. Digital video ad spend rose 18% in 2024 to $64bn and is projected to grow another 14% in 2025, reaching $72bn—two to three times faster than total media overall. All three types of digital video, CTV, social video, and online video, are expanding rapidly, with each posting double-digit growth.

“CTV and social video are core pillars of a brand’s comprehensive and integrated media strategy,” vice-president, industry insights & content strategy, IAB, Chris Bruderle added.

“Consumer attention has already moved to these platforms, and advertisers are meeting them there – not just for the scale, but for the ability to precisely target, measure performance across devices, and drive real business outcomes.”

IAB’s Chris Bruderle

As digital video grows, more categories are ramping up their ad spend to connect with consumers where they watch content the most. In 2025, most major categories are set to increase ad budgets by double-digits with CPG (13%), retail (18%), and pharma (19%) leading the way. These categories are capitalising on advanced targeting, including AI-driven personalisation, real-time insights, and shoppable ad formats to drive deeper engagement and more immediate consumer action.

“The industry continues its transformative shift towards streaming driven by content, creators, technology, and improved measurement. However, economic uncertainty, including tariffs, geopolitical conflicts, and changing consumer confidence, (means) the marketplace in 2025 is more difficult to predict than ever before,” Cohen said.