IAB: Digital video advertising surges to $62.1B in 2024, cementing its place as the fastest-growing format

Digital video has officially taken center stage in the online advertising world. According to the newly released IAB Internet Advertising Revenue Report 2024, video emerged as the fastest-growing digital ad format last year, soaring 19.2% year over year to a record-breaking $62.1 billion. The format now claims 24.0% of total internet ad revenue, solidifying its dominance as advertisers pour dollars into immersive, high-impact video experiences.

This meteoric rise in digital video underscores a broader industry shift: brands are gravitating toward content that captures attention, drives engagement, and performs across platforms — from connected TVs and streaming services to short-form mobile clips.

“Video’s growth is a direct response to what audiences are consuming and how they’re engaging,” said David Cohen, CEO of IAB. “It’s no longer a nice-to-have. For brands looking to remain competitive, video is essential.”

For advertisers, this shift opens doors to more dynamic creative, personalized targeting, and commerce integration — all in environments where consumers are leaning in rather than tuning out.

The digital ad industry roared back to life in 2024, with total internet ad revenues climbing 14.9% year over year to $258.6 billion — its strongest performance since the pandemic-era bump in 2021. While all major formats saw growth, digital video led the pack in acceleration.

Here’s how the key formats performed:

• Search advertising: $102.9B (15.9% YoY growth)
• Display advertising: $74.3B (12.4% YoY growth, triple that of 2023)
• Podcast advertising: $2.43B (26.4% YoY growth)
• Social media advertising: $88.8B (36.7% YoY growth)
• Retail media network (commerce media): $53.7B (23.0% YoY growth)
• Programmatic advertising: $134.8B (18.0% YoY growth)

Each of these growth stories reinforces a broader pivot: advertisers are prioritizing platforms that combine scalability, data-driven insights, and immersive experiences.

The explosion in video is being driven not just by consumer habits, but by structural shifts in how advertising operates. Streaming services are embracing ad-supported models. The creator economy is expanding into video-first channels. And brands are embedding commerce directly into content.

This convergence is redefining video not only as an awareness play but as a driver of conversion and ROI.

AI also plays a pivotal role. New generative and agentic AI tools allow marketers to scale video production, personalize content in real-time, and optimize distribution strategies — making video both impactful and efficient.

For marketers, the message is clear: invest in video now, or risk falling behind. Here’s how advertisers can capitalize:

• Double down on video creative: Use generative AI tools to scale content and test variations rapidly.
• Go cross-platform: Embrace a mix of streaming, CTV, short-form mobile video, and social-native content.
• Link video to commerce: Shoppable video is no longer futuristic — it’s here, and it’s working.
• Focus on measurement: Use programmatic and performance-driven strategies to track and optimize impact.

With 24% of total ad revenue now flowing to digital video, this format isn’t just growing — it’s leading the charge into the next era of advertising. For brands, agencies, and platforms, video is the connective tissue between content, engagement, and conversion.

As Cohen puts it, “Those who embrace the volatility, innovate boldly, and lean into high-growth formats like digital video will own the future of advertising.”