What is the current size and annual growth rate of the digital video advertising market?
The digital video advertising market size has grown exponentially in recent years. It will grow from $104.65 billion in 2024 to $140.18 billion in 2025 at a compound annual growth rate (CAGR) of 34.0%. The growth in the historic period can be attributed to internet and mobile penetration, data analytics and targeting, mobile app growth, social media video integration, cost-effective production.
The digital video advertising market size is expected to see exponential growth in the next few years. It will grow to $458.37 billion in 2029 at a compound annual growth rate (CAGR) of 34.5%. The growth in the forecast period can be attributed to smart TVs and connected devices, interactive video formats, programmatic advertising, globalization of content, vertical-specific content. Major trends in the forecast period include AI for ad optimization, 360-degree and virtual reality (VR) video ads, user-generated content (UGC) in video ads, measurement and attribution metrics, cross-channel marketing.
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What key drivers have fueled the digital video advertising market’s development over the years?
Increased digital media usage is expected to drive the growth of the digital video advertising market in the future. Digital media are communication mediums that use different encoded machine-readable data formats. Digital media helps the digital video advertising market by promoting the different brands of companies, and the rise in the consumption of digital media across many platforms has opened new possibilities. For instance, according to Forbes, a US-based global media company in 2023, the global social media users reached a record 4.9 billion, with projections indicating this number will rise to around 5.85 billion by 2027. Thus, increased usage of digital media is driving the growth of the digital video advertising market.
What is the segmentation for the digital video advertising market?
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
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Who are the most influential companies in the digital video advertising market?
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
What are the top industry trends projected to impact the digital video advertising market?
Major companies operating in the digital video advertising market are focused on integrating live images to enhance advertising capabilities. This approach allows for dynamic and visually engaging content that captures viewers’ attention, enhancing brand visibility and interaction. For instance, in September 2024, Amazon Ads, an online advertising division of Amazon.com, Inc., an American multinational technology company, introduced new AI-driven tools aimed at boosting advertising capabilities for brands, including a Video Generator and Live Image feature. These tools allow for the quick creation of engaging video ads and animated images from a single product image. The Video Generator enables advertisers to craft custom videos that showcase essential product features in minutes and at no extra cost, tackling typical time and budget challenges in video marketing.
What are the major regional insights for the digital video advertising market, and which region holds the top position?
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.
What Does The Digital Video Advertising Market Report 2025 Offer?
The digital video advertising market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Digital video advertising refers to a marketing tactic that entails using a brief, educational film to advertise a product before, during, or after the main video. It is a process by which brands present promotional content to millions of viewers. Digital video advertising is used for advertising that increases sales volume, generates buzz, and presents information succinctly and engagingly.
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