The video advertising industry continues its rapid transformation in 2025. Digital video now commands the majority of TV/video ad spend, CTV maintains double-digit growth, and programmatic buying dominates the landscape. Here’s what the latest data reveals for publishers and ad ops teams.
Digital Video Ad Spend: $72 Billion in 2025
Digital video advertising reached $64 billion in 2024, representing an 18% increase from the previous year. The IAB projects this will grow another 14% in 2025 to reach $72 billion—two to three times faster than total media overall.
The most significant milestone: digital video is expected to capture nearly 60% of total TV/video ad spend in 2025, more than doubling its share over the past five years. This marks a fundamental shift in how advertisers allocate television budgets.
| Channel | 2024 Spend | 2025 Projection | YoY Growth |
|---|---|---|---|
| CTV | $23.6B | $26.6B | 16% |
| Social Video | $23.7B | $27.2B | 21% |
| Online Video | $16.6B | $18.6B | 17% |
| Total Digital Video | $64B | $72B | 14% |
Source: IAB 2025 Digital Video Ad Spend Report
CTV Advertising: Double-Digit Growth Continues
Connected TV rebounded strongly in 2024 with 16% year-over-year growth, driven by live events, sports streaming, and expanded programmatic capabilities. The U.S. CTV market is projected to reach between $26.6 billion (IAB) and $33.35 billion (eMarketer) in 2025.
Key CTV statistics for 2025:
- 98.4% of CTV ad dollars go to video ads
- 36% of CTV budgets are reallocated from linear TV
- 36% come from social media budgets
- CTV will reach $46.89 billion by 2028
- CTV will surpass traditional TV ad spend ($45.10B) for the first time in 2028
For publishers running video players like Veedmo, the CTV opportunity extends beyond apps—web-based players on smart TVs and streaming devices capture the same premium inventory.
Where CTV Dollars Are Coming From
The growth isn’t just new money entering the market. Most CTV investment in 2025 represents reallocation from other channels:
- Linear TV: 36%
- Social media: 36%
- Other digital (display, search, online video): 28%
Programmatic Video: 90% of Display by 2026
Programmatic advertising continues its dominance. In 2025:
- U.S. programmatic ad spend will surpass $270 billion
- Programmatic captures over 85% of all digital ad spend
- Programmatic display specifically exceeds $180.4 billion (92% of digital display)
- Social video accounts for 53.7% of programmatic video spending
By 2026, programmatic is expected to represent 90% of global digital display ad spending.
Video Completion Rates by Device
Video completion rate (VCR) remains a critical metric for publishers. The 2025 benchmarks show significant variation by device:
| Device | Completion Rate |
|---|---|
| CTV (Interactive) | 85-95% |
| Tablet | 88% |
| Desktop | 81% |
| Mobile | 80% |
CTV’s dominance in completion rates reflects the lean-back viewing experience. Interactive CTV ads now achieve up to 95% completion—outperforming PC and mobile combined at 62%.
Completion Rate by Ad Length
Ad duration significantly impacts completion:
- Videos under 15 seconds: 53% higher completion rate than 30+ second ads
- Videos under 1 minute: ~66% completion
- Videos 1-2 minutes: ~56% completion
The industry benchmark: a completion rate of 70% or higher is considered good, while below 50% indicates content resonance issues.
Category-Specific Growth Projections
Not all verticals are investing equally in video. The IAB projects these category growth rates for 2025:
- Pharma: +19%
- Retail: +18%
- CPG: +13%
Pharma’s strong growth reflects the channel’s ability to deliver compliant, targeted messaging at scale—something linear TV struggled to provide.
View-Through Rate Benchmarks
View-through rate (VTR) measures how many viewers watch an ad without skipping. Current benchmarks:
- Average YouTube VTR: 31.9% (meaning ~68% skip or ignore)
- Good VTR for skippable in-stream: 15-25%
- CPG/Health advertisers: 14-21% (short-form), 6-11% (long-form)
Factors that improve VTR:
- Captions: Only 22% skip captioned videos vs. 39% without
- Interactive elements: 34% higher engagement than standard autoplay
- First 5 seconds: Critical hook period before skip becomes available
Key Takeaways for Publishers
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Diversify beyond desktop: CTV completion rates (85-95%) far exceed mobile (80%). Ensure your video player supports smart TV environments.
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Optimize for programmatic: With 90%+ of display going programmatic, header bidding and VAST/VPAID compliance are non-negotiable.
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Shorter ads perform better: Sub-15-second ads achieve 53% higher completion. Consider ad pod configurations that favor shorter formats.
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Linear TV budgets are moving: 36% of CTV growth comes from linear reallocation. Position your inventory to capture these dollars.
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Interactive ads are winning: 34% engagement lift and 95% completion rates on CTV. Implement SIMID support where possible.
Data Sources
All statistics in this report come from: