According to the latest data from the Interactive Advertising Bureau (IAB), generative AI is rapidly becoming a standard tool for digital video creation. Currently, 30% of video ads are either built from scratch or enhanced using AI. That number is expected to climb to 39% by 2026.

Interestingly, smaller and mid-sized brands are leading this adoption. By 2026, 45% of small brands and 42% of midsize ones expect to use generative AI for nearly half of their digital video content. Larger brands project a slightly lower rate at 36%.

This shift is not just about efficiency. It is about achieving personalization at scale. Marketers are using AI to create different versions of the same ad for various audiences (42%), make visual and stylistic changes (38%), and refine contextual relevance (36%).

At MindNation, we are fully embracing this transformation. We use AI to craft emotionally resonant, high-impact ads that connect with our diverse audiences. Whether it is a short-form video about workplace mental health or an install-focused campaign for our app, AI allows us to move faster, test smarter, and stay relevant in real time.

The report also highlights the growing influence of Connected TV (CTV). CTV is now considered a must-buy channel alongside social video. Programmatic buying dominates the space, now representing 85% of all CTV transactions, which is up 10 percentage points from last year. Buyers believe programmatic CTV will deliver better ROI (41%) and help achieve greater scale (35%).

However, challenges remain, especially for smaller advertisers. Measurement issues affect 38% of small spenders, compared to 27% of mid-tier and 31% of large advertisers. A limited focus on performance metrics and fewer internal resources often add to the difficulties.

Despite increasing automation, human involvement is still seen as essential. Eighty-three percent of media buyers say human customization is needed for CTV deals. Seventy-four percent plan to invest in internal teams to manage self-service CTV platforms.

In summary, generative AI and CTV are changing how brands connect with their audiences. At MindNation, we are proud to be part of this evolution, using AI to bring smarter, more empathetic marketing to life.