Digital Video Advertising Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, UK, Germany, Japan - Size and Forecast 2024-2028

Digital Video Advertising Market Size 2024-2028

The digital video advertising market size is estimated to increase by USD 527.6 billion and grow at a CAGR of 48.05% between 2023 and 2028. Market expansion hinges on various factors, notably the surge in app advertising, rising adoption of mobile computing devices, and heightened awareness of digital native advertising. However, challenges loom, such as the escalating utilization of ad-blocking solutions, the proliferation of digital ad-related fraud, and the mounting concerns regarding privacy and security. These hurdles necessitate innovative strategies to navigate the evolving landscape. As businesses strive to capture consumer attention amidst increasing digital noise, they must address these obstacles by implementing robust measures to combat ad-blocking, fortify security protocols, and enhance transparency to mitigate fraud risks. Moreover, maintaining a delicate balance between personalized advertising and respecting user privacy is imperative for sustaining consumer trust and fostering long-term relationships in the digital advertising ecosystem.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

By End-user

The market share growth by the retail segment will be significant during the forecast period. Technological advances in the retail sector, such as artificial intelligence (AI), along with data explosion, the increase in the disposable incomes of individuals, and the emergence of many small and medium enterprises (SMEs), serve as the catalysts for the rising adoption of digital video advertising services in the retail segment. Such factors will drive the growth of the retail segment of the global digital video ad market during the forecast period.

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The retail segment was valued at USD 6.40 billion in 2018. The retail segment accounted for the largest share in 2022. Digital video advertising through mobiles and desktops enables marketers and brands to analyze and identify search results using cookies, which gives retailers an in-depth understanding of the needs and demands of consumers. Understanding the needs and desires of consumers offers offline retailers a chance to strengthen the in-store experience of customers by providing products based on their requirements. Moreover, it can also be used in stores to facilitate interactive customer experiences. This, in turn, helps improve advertising campaign effectiveness and ensures efficient consumer acquisition. 

By Region

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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is expected to grow during the forecast period primarily due to the high growth of the market in the US and Canada. The growth of the regional market can be attributed to the increased penetration of smartphones and reliable broadband infrastructure of end-users. The saturation of print newspaper and radio advertising in the region is another major factor for the growth of the regional market.

In addition, mobile ad spending is one of the major drivers of the regional market. As a larger population continues to spend more time using mobile devices for daily activities and content consumption, vendors will focus on integrating more marketing activities into mobile devices during the forecast period.

Market Dynamics and Customer Landscape

In the market, enterprises (B2B) are increasingly allocating resources towards video advertising spending, navigating through various components like agency commissions and rebates while managing production costs and taxes. The surge in web traffic and media consumption reflects the growing influence of internet users on digital consumer spending patterns. E-commerce sector players are at the forefront of this transformation, leveraging digital capabilities to adapt to changing consumer behavior and capitalize on the power of visual media. While traditional cable and satellite platforms persist, non-conventional platforms like desktops, mobile phones, and OTT media platforms are gaining prominence, alongside engagement on social media applications. Service delivery methodologies evolve, and broadcasters produce captivating digital video contents, driving up engagement rates and reshaping the advertising landscape.

Key Market Driver

Growing in-app advertising is the key factor driving the growth of the global market. The growing popularity of in-app advertisements is one of the major factors driving the growth of the global market. Mobile phone users spend more than 80% of their time on dedicated apps compared to the 20% spent on browsers on their mobile devices. The high amount of time spent on apps has attracted advertisers to focus on in-app advertisements of their products and services. Also, this platform helps app developers generate revenue without charging the users to use their apps. In-app advertisements are cost-effective and help reach a targeted audience based on the data collected through the apps and cache files.

In-app advertising provides a better consumer experience than display advertising on the mobile web. Advertisements on the mobile web are often compressed and unappealing to smartphone users. In-app advertisements, on the other hand, are scaled to fit the screen and look better, thereby improving overall engagement. Accessibility is another important beneficial factor for in-app advertising. Since most users have their phones with them around the clock, wherever they go, it is easy to reach them through in-app mobile advertising. These factors are propelling the popularity of digital video ads, thereby enhancing the growth of the global market during the forecast period.

Significant Market Trends

Increased spending on online video and CTV advertising is the primary trend in the global market growth. Online video advertising is promotional content that can be played before, during, or after streaming. It is one of the most efficient ways to reach online audiences. Online video is one of the fastest-growing channels. Many platforms deliver video content through multiple devices and to multiple screens. Through building partnerships with providers, advertisers can use the medium of online video to increase their reach and reduce their costs. The spending is expected to increase from USD 62 billion in 2021 to USD 91 billion in 2024. The growth is substantial in certain industries; for instance, in media and entertainment, video-based advertising spending has increased by 75% since 2018.

Advertisers are increasingly viewing OTT content providers as profitable advertising platforms. The growing consumer demand for content that can be viewed conveniently has aided the popularity of OTT content platforms. In addition, significant investments made by OTT content platforms, such as Netflix, Hotstar, and Amazon Prime, to ensure diversity in content offerings have led to a rise in subscription-based services globally. Such factors will positively impact the growth of the global market during the forecast period.

Major Market Challenge

The growing use of advertisement-blocking solutions is a major challenge to the growth of the global market. The increasing interruption of digital advertisements while accessing digital content such as video over the Internet made consumers question the usefulness of online advertising. They are questioning whether these advertisements add value or relevance to the online viewing experience. This led consumers to adopt advertisement blockers, which helped them block advertisements from being displayed. An advertisement blocker is a code that can be attached to the browser as an extension, which helps block all advertisements as one crosses through the Internet—these help in removing unwanted advertisements that interrupt the online viewing experience.

Since many people are using advertisement-blocking software, various advertisements are being blocked and thus never getting served. This leads to investment loss to the publisher and the advertisement network since no revenue is generated in this scenario. Also, most publishers on the Internet offer their content for free and earn revenue only through advertisements. Hence, the use of advertisement-blocking solutions can affect the revenue of these groups. The growing use of ad blockers can pose a challenge for digital advertisers. Such factors can negatively impact the growth of the global market during the forecast period.

Key Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Advertise.com Inc.: The company offers digital video ad for highly engaging audiences across desktop and mobile devices.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Alphabet Inc.
• ByteDance Ltd.
• Digital Turbine Inc.
• Kargo Global Inc.
• Longtail Ad Solutions Inc.
• Magnite Inc.
• MediaMath Inc.
• Meta Platforms Inc.
• Microsoft Corp.
• Pinterest Inc.
• PubMatic Inc.
• Snap Inc.
• Tencent Holdings Ltd.
• Tremor International Ltd
• Twitter Inc.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-User Outlook 
  • Retail
  • Consumer goods and electronics
  • Media and entertainment
  • Automotive
  • Others

• Type Outlook 
  • Desktop
  • Mobile

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing exponential growth, driven by enterprises (B2B) capitalizing on increasing video advertising spending. Agencies benefit from commissions and rebates while managing production costs and taxes. Web traffic and media consumption surge as internet users drive consumer electronics, following the S-curve function. Technology adoption and exponential trend smoothing shape the usage of digital media, especially in the booming e-commerce sector. Enterprises harness digital capabilities to adapt to changing consumer behavior, prioritizing visual media over traditional cable and satellite. Non-conventional platforms, including mobile phones and OTT media platforms, proliferate, along with engagement on social media applications. Service delivery methodologies evolve, and broadcasters produce digital video content to enhance engagement rates. Technological advancements in videography and recording equipment empower advertising campaigns, ensuring brand exposure and loyalty across OTT platforms. However, hindrances persist for small businesses, including the quality of content and managing the volume of traffic across YouTube, Facebook, and e-commerce sites.

In the dynamic landscape of the market, agency commissions play a pivotal role in facilitating transactions between advertisers and platforms. The proliferation of internet usage has paved the way for a diverse array of digital video advertising, captivating audiences and enhancing engagement rates. Embracing trends like vertical filming and leveraging cutting-edge video filming technology and AI ensures content is optimized for consumption across devices, including Connected TVs and social media accounts. Strategies like search engine optimization and fostering brand loyalty are crucial for maximizing visibility and impact in an era of high-speed internet. Various advertising types, such as In-banner digital ads and Companion ads, are reshaping the online advertising industry on platforms like online portals and social networking sites. Continuous technical improvements drive digital spending, particularly within the e-commerce sector, where e-commerce companies vie for consumer attention with captivating e-commerce products.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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