Why Nearly 90% of Advertisers Are Turning to GenAI for Video Ads

The advertising industry is undergoing a major shift, and it is happening almost entirely behind the scenes. According to the Interactive Advertising Bureau’s 2025 Digital Video Ad Spend & Strategy report, 86 percent of advertisers are now using or planning to use generative AI to create video ads. This is not a minor workflow tweak. It is a fundamental change in how brands build, test, and scale creative content.

The advertising industry is undergoing a major shift, and it is happening almost entirely behind the scenes. According to the Interactive Advertising Bureau’s 2025 Digital Video Ad Spend & Strategy report, 86 percent of advertisers are now using or planning to use generative AI to create video ads. This is not a minor workflow tweak. It is a fundamental change in how brands build, test, and scale creative content.

From Hollywood Budgets to DIY Studios

A simple 30-second video ad once required a film crew, a scriptwriter, a few days of location shooting, and weeks of editing. The costs stacked up quickly, making video advertising a luxury for many smaller businesses.

That reality has changed.

Tools such as Runway, Synthesia, and Pictory allow marketers to generate high-quality video using a basic script or a few assets. Need a voiceover? GenAI will produce one. Want to change the background, visual tone, or presenter? Done in minutes!

Even lean, one-person marketing teams can now create video ads that look and sound like they were made in a full studio.

What used to take weeks now takes hours, with no crew, no cameras, and often no external help.

More Versions, More Impact

Another reason marketers are turning to GenAI is for rapid personalisation. AI enables multiple creative variations at scale.

A single campaign can now include:

· One version tailored for Gen Z in London

· One for working parents in rural areas

· Language adaptations for Spanish, French, and Portuguese audiences

· Cultural shifts in tone, music, and visual cues for different demographics

This kind of targeting has been shown to boost engagement significantly. According to McKinsey & Company, companies that personalise at scale see revenue increases of up to 15 percent. GenAI is making that kind of precision accessible to brands at every level.

The Outcome-Driven Era

The IAB report also highlights a shift in how advertisers define success. Views and impressions still matter, but more brands are now focusing on tangible business outcomes.

They want to know:

· Did this ad drive sales?

· Did it increase store visits?

· Did it lift brand recall in the right demographic?

GenAI supports this outcome-based model by enabling rapid A/B testing. Brands can create dozens of ad variations, measure performance in real time, and double down on what works.

This agility used to be available only to major enterprises with large teams and big media budgets. Now, even smaller players can adapt campaigns on the fly and achieve measurable results.

CTV and the Video-First Future

Connected TV is now one of the most dynamic areas in digital advertising. As consumers move away from cable and spend more time on streaming platforms like Hulu, Roku, and YouTube TV, advertisers are shifting budgets accordingly.

CTV ad space is highly valuable. However, it has traditionally required platform-specific formats, screen-safe visuals, and viewer-friendly pacing.

Generative AI solves many of those challenges. It allows brands to quickly create:

· Holiday-themed variations based on region or language

· Product-specific ads for different markets

· Seasonal campaigns timed to local weather or events

This flexibility is reshaping how brands think about video content strategy.

Who’s Using It and How

Brands across sectors are already using GenAI in practical and strategic ways.

Retailers are generating promotional videos for regional offers and local store launches.

SaaS companies are building animated walkthroughs for onboarding and support.

Media and entertainment brands are creating teaser trailers customised for different markets.

Political campaigns are using GenAI to generate localised messaging on a rolling basis.

Even large publishers are experimenting. For example, The Washington Post has integrated AI tools in content workflows to support scalable video storytelling. The line between media and marketing continues to blur.

Redefining the Creative Process

While some worry GenAI could replace creative jobs, many industry leaders see it as an enhancement rather than a threat. Creative professionals are now shifting focus from repetitive tasks to higher-level strategic and conceptual work.

Some agencies have added prompt engineers or AI content managers to guide these tools toward brand-aligned outputs. The result is a new hybrid workflow, where human creativity sets the tone and AI handles the heavy lifting.

This shift not only boosts efficiency but also frees up time for deeper innovation.

Risks and Responsibilities

Despite its advantages, GenAI is not without challenges.

Ethical concerns are growing. What happens if an AI-generated video unintentionally reflects bias? Should consumers be told when an ad is created by AI? And how do we prevent overuse of similar AI templates from making ads feel robotic or inauthentic?

The risk of deepfakes, misinformation, and brand damage is real. That is why oversight remains critical. AI can speed up production, but it still needs a human touch to ensure the message is meaningful, inclusive, and trustworthy.

Industry groups, including the World Federation of Advertisers, are calling for shared guidelines to protect consumers and build trust.

What’s Next

By 2026, the IAB predicts that generative AI will be responsible for 40 percent of all video ad creation. This shift will likely bring even more automation, with platforms capable of generating entire campaigns, from scripts and visuals to voice and music, in real time.

We can also expect deeper integrations with live data. Soon, AI-generated ads may adjust dynamically based on weather, time of day, or even individual viewer preferences.

However, with this power comes the responsibility to be transparent, accurate, and creative in ways that serve the audience, not just the algorithm.

The Bottom Line

Generative AI is no longer a novelty. It is now central to how brands plan, produce, and optimise their video advertising strategies.

It reduces costs, increases speed, and allows for creative flexibility that simply was not possible before. Whether you're a solo marketer or a global brand, the opportunity to do more, and to do it smarter, is now within reach.

The future belongs to those who can use this technology not just to scale, but to connect. Machines may generate the content, but the magic still lies in the message.