Digital video ad budgets are set to rise again. CTV spending is projected to reach $29.3 billion this year. Targeting and content quality remain top priorities for media buyers.
Digital video revenue will see connected TV (CTV) ad spending climb 11% to $29.3 billion in 2026, according to a new IAB report. This growth, while slightly below last year's 12% increase, signals continued investment in CTV as advertisers seek more precise targeting and higher content quality.
The report, based on a February-March survey of 360 media executives by Advertiser Perceptions and research from Guideline, highlights that targeting capabilities are expected to improve to 49%, up from 39% last year. Content quality is also projected to rise to 46%, compared to 43% previously. These factors are shaping how publishers and platforms position their video inventory to attract ad dollars.
Social video is forecast to grow even faster, with a 13% increase to $31.9 billion, while online video is set to reach $20.7 billion, up 10%. When asked about the main drivers for CTV and media budget changes, executives cited cost and audience delivery as the top considerations, both at 47%-an increase from 41% in 2025.
Fraud remains a significant concern, especially in open programmatic CTV exchanges, with 56% of respondents highlighting it as a risk. The second most cited issue is unverified publishers or content sources, at 48%. Among live content genres, breaking news (69%), sporting events (65%), and award shows (64%) are the most valued by video buyers. Viewer attention is seen as the primary value driver for live TV and streaming, followed by business outcomes.
Half of surveyed executives believe that pricing for live content in automotive and financial services CTV deals is not justified by the return, particularly for products with longer purchasing cycles. This presents ongoing challenges for publishers targeting these advertiser categories.
For additional perspective on how publishers are adapting to changes in digital ad environments, see this analysis of strategies for monetizing identity-less ad inventory: how signal loss is driving new revenue streams.
