Digital video ad spend is on the rise, and the forces behind the shift are artificial intelligence and sharper audience targeting, according to a report published by MarTech.

The trade publication's coverage points to a strategic reordering of advertiser priorities. Brands are no longer treating digital video as an experimental line item. Instead, they are moving budgets into the channel and restructuring how they plan, buy, and measure video campaigns around AI-enabled tools and more precise targeting capabilities.

The story is consistent with what operators across the ad-tech stack have reported over recent quarters: video inventory commands a growing share of programmatic spend, and buyers expect the machine-learning layer of their platforms to do more of the work.

What is driving the spend shift?

Two factors stand out in the reporting.

• Artificial intelligence. Advertisers are applying AI to campaign planning, creative variation, bid decisions, and performance optimization. The technology reduces the manual workload and lets buyers react to performance signals faster than human traders can.
• Improved targeting. As third-party identifiers lose reliability, platforms have leaned on alternative data approaches to keep video ads relevant. Better targeting keeps video inventory attractive to performance-minded buyers, not just brand advertisers.

The combination matters for operators. AI-driven optimization plus tighter targeting means advertisers can justify higher effective CPMs for video placements, because the format delivers both attention and measurable outcomes. That, in turn, pulls more budget into the channel.

Why video, specifically?

Digital video occupies a unusual position in the media mix. It carries the production values and engagement of television but ships with the addressability and measurement of digital display. For advertisers rebuilding their strategies around data, that hybrid profile is the selling point.

AI tools strengthen the case. Automated decisioning makes it practical to run video campaigns across fragmented inventory — connected TV, social video, publisher players — without scaling headcount at the same rate. Targeting improvements make sure those impressions land closer to the intended audience.

What should buyers and sellers watch?

The MarTech reporting frames the current moment as a strategic reshape rather than a routine cyclical uptick. Advertisers are not simply spending more on video; they are reorganizing planning and buying processes around new tooling.

For publishers and platforms selling video inventory, the trend favors those that can offer clean targeting signals and machine-readable performance data. For agencies and in-house teams, the pressure runs toward adopting AI-assisted workflows before competitors extract a cost advantage from them.

The details of the report — spend figures, growth rates, and named advertisers — were not included in the syndicated summary Mart Signal received. Readers who need the underlying numbers should consult the full MarTech report directly.

The bottom line

Digital video ad spend is growing. AI and better targeting are the stated engines of that growth, and advertisers are treating both as strategic infrastructure rather than optional extras. Operators on both sides of the transaction should expect the tooling gap between leaders and laggards to translate directly into pricing and performance gaps.