A recent market forecast on Ad spending in global Digital Video Advertising market revealed that it is expected to reach US$191.30bn in 2024. This Ad spending is expected to show an annual growth rate (CAGR 2024-2028) of 6.04%, resulting in a projected market volume of US$241.90bn by 2028.

This is according to world market research platform, Statista, urging stakeholders in the market to make informed decisions while prompting the industry to innovate and adapt to evolving consumer trends.

The form of Digital video advertising in scope here includes all ad formats within webpage-based videos, app-based video players, social media networks, or social media apps, pre-roll, mid-roll, and post-roll video ads, Text- or image-based overlays that appear in video players, native advertising, connected TV advertising and Ad spending on short-form videos.

With a projected market volume of US$84,610m in 2024, most revenue will be generated in the United States. In the Digital Video Advertising market, 80% of total ad spending will be generated through mobile in 2028. Connected TV ad spending in the Digital Video Advertising market is projected to reach US$34.37bn in 2024.

Connected TV is expected to show an annual growth rate (CAGR 2024-2028) of 10.56%, resulting in a projected market volume of US$51.35bn by 2028. The Ad spending on short-form videos in the Digital Video Advertising market is projected to reach US$99.43bn in 2024 and it is expected to show an annual growth rate (CAGR 2024-2028) of 10.04%, resulting in a projected market volume of US$145.80bn by 2028.

Digital video advertising has become more popular over time as people watch more online video content, moving away from TV and toward smart connected devices. As expected, OTT (over-the-top) advertising is used by marketers for storytelling. OTT content, which can be delivered on demand and directly to users’ smart TVs, computers, or smartphones that are connected to the internet, is ushering in a new era of video advertising. The key players in Digital Video Advertising include Comcast Corp., The Walt Disney Company, YouTube, TikTok, and Facebook.

Digital video advertising has experienced substantial growth because connected devices have become cheaper over time, allowing more people to purchase them and use them daily. Even though digital video advertising was already growing before the COVID-19 pandemic, it experienced a rapid increase since the pandemic started, because people have been spending significantly more time on consuming digital video content.

TikTok’s increasing popularity during the pandemic, the noticeable prevalence of the short video format, and the increase in ad-supported video-on-demand are the main reasons why people spend more time on digital video content. Digital video advertising will continue to gain importance significantly because consumers watch more digital video content.