Global video ad spend to hit US$229.80bn by 2027
By Ibidunni Banjoko
Statista, a research agency in Germany reports that the Video Advertising market worldwide is expected to show an annual growth rate (CAGR 2023-2027) of 6.80 percent, resulting in a projected market volume of US$229.80bn by 2027. Meanwhile, for the current year, the Ad spending in the Video Advertising market is projected to reach US$176.60bn in 2023 while most revenue will be generated in the United States.
In the Video Advertising market, US$180.00bn of total ad spending will be generated through mobile in 2027.
Connected TV ad spending in the Video Advertising market is projected to reach US$29.79bn in 2023. Connected TV is expected to show an annual growth rate (CAGR 2023-2027) of 12.41%, resulting in a projected market volume of US$47.56bn by 2027. The market share of Facebook amounts to an estimated 7% of the Video Advertising market and the selected region in 2022.
Whether it is a six-second bumper ad or a multi-minute compilation, video marketing has become one of the most popular and effective ways of capturing the attention of audiences across the globe. As the number of digital video viewers keeps rising every year, marketers embrace video as a promotional tool more vividly than ever.
In 2022, online video ad spending amounted to almost 75 billion U.S. dollars, thereby accounting for almost 30 percent of total display ad spend worldwide. Unsurprisingly, the United States remains the country with the highest spending on digital video ads, followed by China and the United Kingdom. Connected TV (CTV) and social video are among the most popular content marketing tactics worldwide, and the post-pandemic era has only consolidated companies’ dependency on these tools.
In the first half of 2022, the global viewability rate of desktop video ads stood at 77 percent, which means that 77 percent of display ads on desktop devices were in view in the measured period. The same was true for 80.1 percent of mobile web video ads and 83.7 percent of in-app video ads.
During the fourth quarter of 2022, online videos recorded an audience reach of almost 92 percent among internet users worldwide. In recent years, video has become one of the most popular online formats, spanning from educational content to product reviews. Music videos recorded the highest category reach, with almost 49 percent of responding internet users reporting watching music videos online each week.
The Weekly time spent with online video worldwide 2018-2023, According to a survey conducted among consumers worldwide, respondents watched an average of 19 hours of online video content per week in 2022. This represented an increase from 2021 when consumers watched 19 hours of online video content weekly.
In the company’s latest report, the ad spending in the video advertising segment of the digital advertising market in the United States was forecast to continuously increase between 2023 and 2027 by a total of 28.9 billion U.S. dollars (+37.55 percent). According to this forecast in 2027, ad spending will have increased for the fourth consecutive year to 105.9 billion U.S. dollars. Notably, the ad spending of the video advertising segment of the digital advertising market was continuously increasing over the past years.
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