IAB Survey: Ad Execs Bullish on Ad Growth and AI Usage in 2025

political advertising
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NEW YORK—Despite record-breaking ad revenues in 2024 fueled by massive political spending and the Olympics, a new Internet Advertising Bureau (IAB) survey indicates buyers are bullish on both the prospects for increased ad spending in 2025 and the usage of new technologies like generative AI.

The new IAB study, “2025 Outlook: A Snapshot Into Ad Spend, Opportunities and Strategies for Growth,” is based on a survey of buyers at brands and agencies. It found that buyers expected double-digit growth in connected TV, social media and retail media. While overall ad-spend growth is projected to be lower than 2024, when it surged due to the Olympics and the presidential election, it remains positive with an anticipated modest growth of 7.3%.

Much stronger growth is expected in retail media, which buyers said is projected to grow at more than twice the rate of spend overall (15.6%) as well as CTV (13.8%) and social (11.9%).

“This report clearly shows that budgets are being focused at the points where consumers, commerce, and video converge—where advertisers can leverage the power of sight, sound, and motion and consumers can engage or transact,” IAB CEO David Cohen said. “Advertisers are starting the year looking for growth, and investing in channels that drive the most meaningful business results.”

The survey also covered buyers’ goals and strategies in a period that continues to be plagued by inflation, fragmentation and persistent measurement challenges. It found that buyers’ goals, as in previous years, span the entire purchase funnel. But customer acquisition remains the top priority, increasing 12% year-over-year as buyers seek revenue growth to offset shrinking margins from ongoing inflation.

Buyers surveyed also expressed ongoing concerns about deduplication, incrementality and measurement. That’s particularly so in video streaming, where the growth buyers are excited about also fuels their top concern—cross-platform measurement, the report said.

In addition, the survey also found that the adoption of generative AI in media planning is growing, with nearly eight in 10 buyers already using (42%) or exploring (36%) the technology for media planning and/or activation. Half of users already insist on mandatory human oversight and clear brand-safety protocols to protect against misuse, inaccuracies, and other risks.

While the excitement for Gen AI is high, it is still early days for the companies leveraging it, the study stressed. Only one-third of companies using generative AI have organized, collaborative resources in their organizations. There is still a lot of opportunity for companies to drive efficiencies and growth.

“Thoughtful buyer optimism is always a good way to start the year,” Cohen continued. “And the smartest way for the industry to keep that alive is to give advertisers the transparency, choice, and business results they’re looking for. The market waits for no one—we must keep pushing forward.”

The full “2025 Outlook: A Snapshot into Ad Spend, Opportunities, and Strategies for Growth” study is available here.

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George Winslow

George Winslow is the senior content producer for TV Tech. He has written about the television, media and technology industries for nearly 30 years for such publications as Broadcasting & Cable, Multichannel News and TV Tech. Over the years, he has edited a number of magazines, including Multichannel News International and World Screen, and moderated panels at such major industry events as NAB and MIP TV. He has published two books and dozens of encyclopedia articles on such subjects as the media, New York City history and economics.

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