The news: US digital video ad spend will increase 14% YoY in 2025, reaching $72.4 billion compared with $63.8 billion spent in 2024, per the IAB 2025 Digital Video Ad Spend & Strategy Report. Digital video encompasses connected TV (CTV), online video, and social video.

Other key findings:

Digital video advertising is projected to capture nearly three-fifths (58%) of all TV and video ad budgets in 2025, twice what it was in 2020. In 2024, digital video viewership surpassed linear television.
CTV advertising will grow 13% in 2025, reaching $26.6 billion and becoming 43% larger than the online video segment ($18.6 billion).

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