Digital Video Advertising Market

Global Digital Video Advertising Market Size (2024 to 2032)

The size of the global digital video advertising market was valued at USD 190.42 billion in 2023, and the global market size is anticipated to be worth USD 1058.73 billion by 2032 from USD 230.41 billion in 2024, growing at a CAGR of 21% from 2024 to 2032.

Digital video advertising involves the promotion of products or services through video content on online platforms. The growing consumption of online video content and the effectiveness of video in conveying messages have given immense popularity to digital video advertising worldwide. The rising prevalence of video streaming platforms, social media and mobile devices has been offering huge growth potential for the digital video advertising market to grow significantly. Advertisers recognize the potential to reach targeted audiences with personalized and interactive content. Additionally, advancements in data analytics and targeting capabilities contribute to the effectiveness of digital video advertising and allow advertisers to measure and optimize campaigns for better results. As a result, the digital video advertising market continues to expand in the coming years.

MARKET DRIVERS

The growing consumption of online video content worldwide is one of the major factors propelling the growth of the global digital video advertising market. The widespread availability of high-speed internet and the popularity of video streaming platforms are contributing to the surge in online video consumption and are creating a substantial audience for digital video advertising. As per the statistics, online video consumption was estimated at 236 billion hours in 2023. YouTube is one of the largest online video platforms and an estimated 2.7 billion people per month actively accessed YouTube in 2023, which was 2.68 billion per month in 2022 and 2.5 billion per month in 2021. This indicates the growth in the usage of online video consumption and this trend is gradually growing. As online video consumption grows worldwide, the market for digital video advertising is likely to expand and offer more growth possibilities.

The widespread adoption of smartphones is further driving the global digital video advertising market. The number of people using smartphones has increased significantly in the last decade of the timeline. For instance, it was reported that more than 3.8 billion people had access to smartphones in 2021. The rise in the usage of smartphones worldwide has completely changed the way how people access and consume content. An estimated 72% of the digital ad spending in the United States was spent focusing on mobile advertising, which showcases the growing efforts of advertisers targeting mobile platforms to reach their target audience. In addition, online video consumption on mobiles is growing rapidly. As per the predictions of Zenith Media, mobile devices accounted for 78% of all online video consumption in 2023 and the trend is likely to accelerate further in the coming years. As a result, the growing number of smartphones and increasing efforts from advertisements targeting mobile platforms are expected to result in the expansion of the digital video advertising market.

Targeting capabilities and data analytics are further supporting the growth of the digital video advertising market. Advanced targeting capabilities and data analytics allow advertisers to precisely target specific demographics, interests and behaviors, which offers better scope to the advertisers to perform better and favor the market growth.  Factors such as higher engagement rates compared to traditional ads, rapid penetration of social media platforms, emergence of over-the-top (OTT) platforms, increasing popularity of short-form video content and shift in advertising budgets from traditional media are further promoting the growth of the global market.

MARKET RESTRAINTS

Limited internet access in certain regions, data privacy concerns and content piracy and copyright issues are some of the considerable restraints to the global digital video advertising market. Ad blockers and ad avoidance is a significant factor troubling the growth of the global market. Competition from other entertainment options, high data usage costs for consumers, lack of compelling content, and regulatory restrictions on content availability are slightly showcasing negative impacts on the growth rate of the global market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Digital Video Advertising Market By Type

Based on type, the mobile segment dominated the market, accounting for 60.8% of the global market share in 2023 and is expected to grow at the fastest CAGR of 5.44% during the forecast period. The domination of the mobile segment is majorly driven by factors such as the growing usage of smartphones and mobile devices, the growing global mobile ad spending and increasing online video consumption on mobile devices. For instance, an estimated 70% of digital video views happens on mobile devices currently. The rising popularity of in-app video advertising and advanced targeting capabilities based on mobile user data are further fueling the growth rate of the mobile segment in the global market.

The desktop segment occupied a substantial share of the worldwide market in 2023 and is anticipated to grow at a CAGR of 4.04% during the forecast period. The growing demand for larger screen advertising formats and the effectiveness of desktops in reaching professionals and office-based audiences are favoring the growth of the desktop segment.

Global Digital Video Advertising Market By Industry Vertical

Based on industry verticals, the retail segment led the market, holding a share of 19.78% of the global market in 2023 and is projected to register a healthy CAGR during the forecast period. The growth of the retail segment is primarily attributed to the lucrative engagement rate of online video ads in the retail sectors and growing mobile video ad spending by the big retail brands. Factors such as the growing e-commerce and online retail activities and rising demand for personalized and targeted advertising are anticipated to support the growth rate of the retail segment in the global market during the forecast period.

The media and entertainment segment was the second largest segment in 2023 with 16.3% of the global market share and is predicted to register a prominent CAGR during the forecast period. The growing demand for video content streaming and OTT services, targeted advertising based on user preferences and behavior and increasing partnerships with content creators for exclusive ad placements are propelling the growth of the media and entertainment segment.

REGIONAL ANALYSIS

North America emerged as the largest regional segment for digital video advertising in 2023.

Accounting for 36.8% of the global market share and the domination of the North American region is anticipated to continue throughout the forecast period. The domination of North American Region I in the global market can be credited to the high adoption of streaming services and digital platforms and growing consumer demand for personalized and interactive content. For instance, on average, 70% of internet users in North America engage with digital video content monthly. The U.S. accounts for the major share of the North American market owing to the strong presence of major tech companies that drive innovation in ad tech and widespread digitalization.

The Asia-Pacific is the most lucrative region for digital video advertising currently and is estimated to register the fastest CAGR among all the regions in the global market during the forecast period.

Factors such as rapid adoption of smartphones, increasing mobile internet penetration, the emergence of local and regional streaming platforms and a growing middle-class population with disposable income for digital services are majorly contributing to the lucrativeness of the Asia-Pacific region for digital video advertising services. Being growing economies, China and India have been majorly contributing to the growth of the Asia-Pacific region and collectively accounted for 60% of the APAC market share in 2023.

Europe is a notable regional segment for digital video advertising in the global market and captured 23.9% of the global market share.

Europe is projected to showcase a prominent CAGR during the forecast period due to the growing popularity of over-the-top (OTT) streaming services, rising cross-device targeting and seamless ad experiences and rapid adoption of advanced video ad formats that include 360-degree and VR ads.

KEY MARKET PLAYERS

Companies that have a noteworthy presence in the global digital video advertising market include WebFX, Levitate Media, LLC, SpotX Inc, Advertise.com, Tremor International Ltd, Viant Technology LLC, MultiVisionDigital, Conversant Solutions, LLC., PubMatic, Inc., Legacy Pro Co LLC, Interactive Advertising Bureau, Buzzfeed Inc., Mashable, Vice Media Group, Verizon Communications, RTL Group S.A., Publicis Groupe, Longtail Ad Solutions, ZypMedia, Inc., JW Player, Inc., Conversant LLC., Google LLC, Meta Platforms Inc., Tencent Holdings Ltd., ByteDance Ltd., Amazon Advertising, LinkedIn Corporation, Snap Inc., Twitter Inc., Hulu Ad Manager, Roku Inc., Pinterest Inc., Advance Publications Inc., The Trade Desk Inc., Youku Tudou Inc., Vimeo Ads, Samsung Ads, Tubi Advertising, InMobi, Vdopia Inc., Adobe Advertising Cloud, Smaato, OpenX, AdColony, Magnite Inc., Criteo S.A., AdRoll, Amobee, Adform, Unity Technologies, Kargo Global Inc. and Unity Ads.

DETAILED SEGMENTATION OF THE GLOBAL DIGITAL VIDEO ADVERTISING MARKET INCLUDED IN THIS REPORT

This research report on the global digital video advertising market has been segmented and sub-segmented based on type, industry vertical, and region.

By Type

• Desktop
• Mobile

By Industry Vertical

• Retail
• Automotive
• Financial Services
• Telecom
• Consumer Goods & Electronics
• Media & Entertainment
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa