The news: Advertisers are prioritizing interactive video ads to capture users and boost engagement as social media and YouTube consume ad spend.

• 52% of US brands and agencies expect to use interactive features in at least 26% of their ads this year, per Digiday and PadSquad’s 2025 State of the Industry survey. Only 7% neither use nor plan to use interactive video features in their ads.
• 70% expect that interactive connected TV (CTV) ads will have the highest adoption rate as a video format in 2025.

How does it work? Interactivity can take multiple forms and isn’t limited to shoppable overlays, which are used by 58% of advertisers.

• 38% use personalized ads tailored in real-time, while 37% add clickable elements to photos and videos.
• 28% deploy gamified elements, such as quizzes or interactive rewards.

Platforms for big spending: Social media, CTV, and YouTube are hot beds for ad spending.

• 93% of advertisers are spending on social videos and 83% on CTV.
• Social video accounts for the largest budget share for 64% of brands, followed by CTV (61%) and YouTube (39%).

Obstacles to adoption: Despite excitement around interactive ads, some hurdles remain.

• Half (52%) of interactive video advertisers are struggling to prove ROI on interactive ads, a factor that could complicate continued investment.
• 49% said that interactive videos have high production costs.
• 30% cite attribute and measurement problems.

Our take: In a saturated media market, getting and keeping consumers’ attention is a difficult endeavor. Integrating gamified features and personalized media elements can help ensure that marketing campaigns are seen and not just scrolled past.

Working with third-party measurement firms—such as Nielsen, Kantar, or DoubleVerify—could help address confidence gaps around interactive ads’ effectiveness.

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