The digital video advertising market has seen considerable growth due to a variety of factors.
• There has been an incredible expansion in the market size of digital video advertising in the past few years. The sector is expected to balloon from $104.65 billion in 2024 to a staggering $140.18 billion in 2025, indicating a compound annual growth rate (CAGR) of 34.0%.
Factors such as an increase in internet and mobile usage, data analytics and targeted marketing, rise in mobile app usage, integration of video on social media, and affordable production costs can all be attributed to the growth during the historical period.
The digital video advertising market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the digital video advertising market is anticipated to undergo massive expansion in the coming years, reaching $458.37 billion in 2029 with a compound annual growth rate (CAGR) of 34.5%.
Factors contributing to this growth during the forecasted period include advancements in smart TVs and connected devices, novel video formats that promote interaction, programmatic advertising, content globalization, and industry-specific content. Key market trends to watch out for during this time encompass AI-driven ad optimization, immersive 360-degree and virtual reality (VR) video ads, video ads utilizing user-generated content (UGC), assessment and attribution metrics, and multi-channel marketing.
Expected growth in the digital video advertising market is linked to an upsurge in digital media usage. Digital media, as communication tools, use a variety of coded, machine-readable data formats to operate. They support the digital video advertising market by amplifying the reach of various company brands. Increased consumption of digital media across numerous platforms has heralded the arrival of new opportunities. Forbes, the US-based international media corporation, pointed out that the number of global social media users hit a record high of 4.9 billion in 2023. This number is predicted to climb to roughly 5.85 billion by 2027. Hence, the surge in the application of digital media is propelling the digital video advertising market's expansion.
The digital video advertising market covered in this report is segmented –
1) By Advertisement Type: Linear Video Ad, Nonlinear Video Ad, In Stream Video Ad, Out Stream Video Ad, Other Advertisement Types
2) By Platform: Desktops, Mobile Devices, Tablets, Smart TV, Gaming Consoles, Bill Boards, Other Platforms
3) By End-User: Retail And E-Commerce, Automotive, BFSI, IT And Telecommunication, Consumer Goods And Electronics, Media And Entertainment, Government, Other End Users
Subsegments:
1) By Linear Video Ad: Traditional TV Ads, Pre-roll Ads, Mid-roll Ads, Post-roll Ads
2) By Nonlinear Video Ad: Overlay Ads, Interactive Ads, Companion Ads
3) By In Stream Video Ad: Video On Demand (VOD), Live Streaming Ads
4) By Out Stream Video Ad: In-Article Video Ads, Social Media Video Ads, Display Network Video Ads
5) By Other Advertisement Types: Sponsored Content, Native Video Ads
Top-tier firms involved in the digital video advertising industry are prioritizing the integration of live images to boost advertising potential. This strategy produces dynamic and eye-catching content that intrigues viewers, bolstering brand recognition and interaction. For example, in September 2024, Amazon Ads, the online advertising subsidiary of the American multinational tech company Amazon.com, Inc., launched novel AI-inspired tools specifically designed to enhance brands‘ advertising prowess. These tools, which include a Video Generator and Live Image feature, facilitate the speedy production of captivating video ads and animated images using a lone product image. The Video Generator provisioned by Amazon Ads enables advertisers to design custom videos that highlight crucial product attributes swiftly and without any additional costs, effectively addressing the common time and budget constraints associated with video marketing.
Major companies operating in the digital video advertising market include:
• Google LLC
• Verizon Media
• Comcast
• Meta Platforms Inc.
• Tencent Holdings Ltd
• ByteDance Ltd
• Amazon Advertising
• LinkedIn Corporation
• Snap Inc.
• Twitter Inc.
• Hulu Ad Manager
• Roku Inc.
• Pinterest 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
• ZypMedia
• Adobe Advertising Cloud
• Smaato
• OpenX
• AdColony
• Magnite Inc.
• Criteo S.A.
• AdRoll
• Amobee
• Adform
• Unity Technologies
• Kargo Global Inc.
• Unity Ads
North America will be the largest region in the digital video advertising market in 2024. The regions covered in the digital video advertising market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.