PUBLISHER: The Business Research Company | PRODUCT CODE: 1436207
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436207
Digital video advertising involves the use of short, informative films to promote a product before, during, or after the main video. This marketing tactic enables brands to deliver promotional content to a vast audience, fostering increased sales volume, generating buzz, and presenting information in a concise and engaging manner.
Digital video advertising encompasses various ad types, including linear video ads, nonlinear video ads, in-stream video ads, out-stream video ads, and other formats. Linear video ads play in chronological order alongside video content, appearing before, during, or after the main video. These ads are delivered across multiple platforms such as desktops, mobile devices, tablets, smart TVs, gaming consoles, billboards, and others. The end-users of digital video advertising span sectors such as retail and e-commerce, automotive, BFSI, IT and telecommunication, consumer goods and electronics, media and entertainment, government, and other industries.
The digital video advertising market research report is one of a series of new reports from The Business Research Company that provides digital video advertising market statistics, including digital video advertising industry global market size, regional shares, competitors with market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the digital video advertising industry. This digital video advertising market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The digital video advertising market size has grown exponentially in recent years. It will grow from $78.47 billion in 2023 to $105.09 billion in 2024 at a compound annual growth rate (CAGR) of 33.9%. The growth observed in the historic period can be ascribed to factors such as increased internet and mobile penetration, the utilization of data analytics and targeting, the expansion of mobile app usage, the integration of social media video, and the cost-effective production methods.
The digital video advertising market size is expected to see exponential growth in the next few years. It will grow to $339.46 billion in 2028 at a compound annual growth rate (CAGR) of 34.1%. The anticipated growth in the forecast period can be attributed to factors such as the proliferation of smart TVs and connected devices, the prevalence of interactive video formats, the rise of programmatic advertising, the globalization of content, and the creation of vertical-specific content. Significant trends expected in this period encompass the use of AI for ad optimization, the emergence of 360-degree and virtual reality (VR) video ads, the incorporation of user-generated content (UGC) in video ads, a focus on measurement and attribution metrics, and the practice of cross-channel marketing.
The anticipated growth of the digital video advertising market is driven by the increased usage of digital media. Digital media encompasses communication mediums that utilize various encoded machine-readable data formats. This form of media plays a crucial role in promoting the brands of different companies, and the growing consumption of digital media across diverse platforms has created new opportunities for the digital video advertising market. For example, in 2021, the Internet Architecture Board reported a 49% increase in spending on digital video advertising, and it is projected to further rise by 26% to reach $49.2 billion in 2022. This underscores how the heightened usage of digital media is a key factor propelling the growth of the digital video advertising market.
The anticipated growth of the digital video advertising market is fueled by the increasing internet penetration and connectivity globally. Internet penetration refers to the percentage of a country's population that uses the Internet, with measurements typically indicating the number of internet users as a proportion of the total population. As internet access extends to more corners of the world, the potential audience for video ads expands accordingly. This expansion creates opportunities for brands to reach previously inaccessible markets and diverse demographics. For instance, according to the OECD in July 2023, the growth of mobile data usage remains robust, with an average annual growth rate of 29% between 2017 and 2021. In 2022, the amount of data used per mobile broadband subscription increased by 17%, indicating a continued upward trend. Over the span of four years, the total amount of mobile data used per subscriber has quadrupled, rising from 4.7 gigabytes per month to 10.4 GB in 2022. This highlights how the increasing internet penetration and connectivity are key drivers for the growth of the digital video advertising market.
Developing innovative platforms stands out as a key trend in the digital video advertising market, with major players channeling their efforts into creating cutting-edge solutions to reach a broader audience. An illustrative example is the collaboration between Huawei Technologies Co., Ltd., a China-based technology corporation, and Wavemaker, a regional division media company based in South Africa. In July 2021, they jointly launched an innovative digital advertising platform to introduce HUAWEI Ads. This platform, known as the Huawei Digital Platform for digital transformation, leverages technologies such as AI, video, big data, and security to address data convergence, operational challenges, and unlock new business value. This initiative exemplifies the industry's focus on innovation and the development of advanced platforms to enhance the landscape of digital video advertising.
Major companies in the digital video advertising market are strategically focusing on the development of advanced technologies, particularly AI-powered ads, to fortify their positions in the market. AI-powered ads utilize artificial intelligence (AI) to enhance various facets of the advertising process, encompassing targeting, personalization, creation, and optimization. A noteworthy example is the initiative by Google LLC, a prominent US-based multinational technology company. In May 2023, Google introduced AI-powered ads, placing AI at the forefront of Google Ads. This innovative feature facilitates a chat-based interaction with Google AI, streamlining the campaign creation process and generating relevant keywords, headlines, and other assets. The integration of generative AI into Search ads elevates ad effectiveness by dynamically adapting content based on user queries, enhancing relevance, and aligning with brand messaging. This exemplifies the commitment of major players to leverage advanced technologies for enhanced and more effective digital video advertising.
In December 2021, Microsoft Corporation, a prominent US-based multinational technology corporation, completed the acquisition of Xandr Inc., an advertising and analytics company based in the US, for an undisclosed amount. This strategic acquisition is centered around advancing digital advertising and retail media solutions. The collaboration aims to shape the future of the digital advertising marketplace by combining Xandr's data-enabled technology platform with Microsoft's audience understanding and technological capabilities. This move underscores Microsoft's commitment to strengthening its presence and capabilities in the dynamic digital video advertising market.
Major companies operating in the digital video advertising market report are Google LLC, Verizon Media, Comcast, Meta Platforms Inc., Tencent Holdings Ltd., ByteDance Ltd., Amazon Advertising, LinkedIn Corporation, Advertise.Com, Snap Inc., Twitter Inc., Hulu Ad Manager, Roku Inc., Pinterest Inc., Advance Publications Inc., The Trade Desk Inc., Youku Tudou Inc., Vimeo Ads, Tremor International Ltd., Samsung Ads, PubMatic Inc., PubMatic, Viant Technology LLC, Tubi Advertising, InMobi, Conversant LLC, Vdopia Inc., ZypMedia, Longtail Ad Solutions Inc., Adobe Advertising Cloud, Smaato, OpenX, AdColony, Magnite Inc., Criteo S.A., AdRoll, Amobee, Adform, Unity Technologies, Kargo Global Inc., Amobee , Unity Ads, Kargo
North America will be the largest region in the digital video advertising market in 2023. The regions covered in the digital video advertising market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the digital video advertising market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The digital video advertising market consists of revenue earned by entities by providing digital video ads including linear video ads such as pre-roll, mid-roll, as well as post-roll and nonlinear ads such as in-stream, overlay ads, and non-overlay ads among others. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Digital Video Advertising Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on digital video advertising market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for digital video advertising ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The digital video advertising market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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