Social Video Ad Spending Is Set to Outpace CTV in Growth Rate This Year

Why It Matters

The shift reallocates advertising dollars toward faster, more targetable social video, reshaping media buying and potentially delivering higher ROI for brands.

Key Takeaways

• Social video ad spend projected to grow 13% YoY in 2026.
• CTV spend growth slows to 11% YoY, lagging social video.
• Brands allocate over 50% of budgets to social video platforms.
• AI tools cut production costs, boosting small‑brand video adoption.
• Targeting capabilities drive small‑mid advertisers toward social over CTV.

Pulse Analysis

The Interactive Advertising Bureau’s latest forecast shows social video ad spend climbing 13% year‑over‑year in 2026, outpacing connected‑TV (CTV) growth, which is expected to rise only 11%. Combined, U.S. digital video investment is set to hit $80 billion, with platforms such as Instagram, YouTube, TikTok and Reddit absorbing a larger slice of brand budgets. Marketers surveyed by the IAB—360 U.S. agencies spending at least $1 million annually—confirm the feed is becoming the primary arena for video advertising, eclipsing the linear‑TV‑like experience of CTV.

Two forces are accelerating the shift. First, user behavior shows a steady rise in video consumption on social feeds—Meta reported an 8% quarterly increase in watch time, while YouTube’s Q1 sales jumped 10.7% to $9.88 billion. Second, generative‑AI creative suites such as Adobe Firefly and Runway have slashed production budgets, making short‑form video accessible to small and midsize brands. The result is a blend of performance‑driven buying and brand‑awareness spend converging on platforms that offer granular targeting and rapid campaign rollout.

For media agencies, the trend reshapes buying strategies. Performance‑marketing firms are reallocating more than half of client budgets to social video, while CTV retains growth through programmatic deals and premium inventory. Yet the appeal of precise audience targeting and lower entry costs keeps CTV relevant for brands seeking high‑impact, longer‑form storytelling. Globally, BIScience’s data suggest the U.S. pattern mirrors markets in Europe and Asia, indicating a broader industry pivot toward video‑first social ecosystems. Advertisers that blend awareness and performance on the same feed will likely capture the highest ROI in the coming years.