Digital video is rapidly becoming the central arena for AI, targeting, and outcome accountability, according to the newly published “2026 IAB Digital Video Ad Spend & Strategy Report: Part One.” The study highlights a fast-expanding marketplace that is increasingly automated and more exacting in its demand for precision. U.S. digital video ad spend is projected to climb 11% year over year and grow nearly 20% faster than the overall ad market. For the first time, digital video will represent more than 60% of all TV and video investment, confirming its structural dominance. As spending rises, expectations naturally evolve. At this scale, advertisers tend to emphasize automation, interoperability, and more uniform outcome measurement. Video is shifting away from experimentation and toward consistently supporting ongoing performance objectives.
CTV growth shifts from access to advantage
As CTV matures and draws a wider range of advertisers, its value proposition is moving from simple availability to its capacity to deliver precision, efficiency, and clearly measurable results. CTV continues to be one of the most powerful growth drivers, forecast to increase 11% in 2026, propelled by three main forces:
- The migration of live programming, including major sports and tentpole events, from linear TV into streaming environments.
- Expanded programmatic access to inventory.
- Stronger evidence of business outcomes.
At the same time, streaming is no longer the domain of only large brands. Small and mid-sized advertisers are entering the space in large numbers, with adoption rising from 60% in 2024 to 85% in 2026, thanks to self-service platforms and simpler activation. …