IAB Europe, the leading European-level industry association for the digital advertising industry, has today (18th September, 2025) released the first Pan-European Impact Report on the Impact of AI on Digital Advertising, the first study showing how AI is being adopted, governed, and leveraged across the digital advertising ecosystem. 

Developed by IAB Europe’s AI Working Group, the survey gathered nearly 100 responses from advertisers, agencies, ad tech companies, and publishers across multiple European markets, with over half completing it in the German language.

Commenting on the findings of the report, IAB Europe’s data analyst & sustainability lead, Dimitris Beis, said, "The digital advertising ecosystem is on the hunt for AI opportunities, both in terms of innovative technologies and new contact surfaces with users. The findings show that adoption in both predictive and generative use cases is widespread, but barriers such as shortages in expertise still need to be addressed. The ecosystem is dealing with questions old and new on issues ranging from privacy to governance, highlighting both that it has been underpinned by machine learning for decades and that new capabilities have transformative potential."

Key findings from the report:

AI adoption is widespread and investment is growing
85% of companies already use AI-based tools for marketing, with nearly three-quarters confirming at least one campaign function is AI-powered. No respondents plan to reduce spend, and the majority expect to maintain or increase investment.

Targeting and content generation lead use cases
Targeting and content generation top the list of AI-powered functions. Ad tech firms and agencies report clear KPI benefits, while publishers remain more cautious, with fewer than a third citing CPM increases.

Governance and guidance remain inconsistent
While 68% of companies have general internal AI guidelines in place, less than half have them for marketing and advertising. Only a third of companies receive buy-side guidelines on AI, and in many organisations, governance is either not formalised or rests with a single lead.

Wayne Tassie, group director NL at DoubleVerify and chair of IAB Europe’s advertising & media committee, also commented on the report, saying, "AI is beginning to reshape the foundations of digital advertising, with the majority of companies already using it in some capacity to finesse targeting and accelerate content generation. By streamlining processes, enhancing scale, and driving performance, AI is unlocking new work streams across the ecosystem. Yet gaps remain; governance and expertise are inconsistent, demand guidance is limited, and privacy stands out as the number one concern.  

IAB Europe's report underscores the urgent need for clear frameworks, ongoing training, and responsible deployment. By addressing these challenges, AI can become an organic part of daily workflows and unlock a new era of efficiency, creativity, and sustainable growth for our industry." 

The report’s findings will directly shape the priorities of IAB Europe’s AI Working Group, which brings together experts from across the ecosystem to collaborate on responsible and effective AI adoption. Building on these insights, the group will continue its focus on key outputs including developing a Guide to Prompting for Digital Advertising and collaborating with publishers to address content access.

The full report can be downloaded from IAB Europe’s website here.

IAB Europe

IAB Europe is the European-level association for the digital marketing and advertising ecosystem. Through its membership of media, technology and marketing companies and national IABs, its mission is to lead political representation and promote indus...

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