GVR Report cover Digital Video Advertising Market Size, Share & Trends Report

Digital Video Advertising Market Size, Share & Trends Analysis Report By Type (Desktop, Mobile), By Industry Vertical (Retail, Automotive, Financial Services, Telecom) By Region, And Segment Forecasts, 2020 - 2027

  • Report ID: GVR-4-68038-744-5
  • Number of Pages: 100
  • Format: Electronic (PDF)
  • Historical Range: 2016 - 2018
  • Industry: Technology

Report Overview

The global digital video advertising market size to be valued at USD 292.4 billion by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 41.1% during the forecast period. Technological advancements and changing consumer behavior have propagated advertisers to adopt innovative ways of digital video advertising. There is a growing trend amongst individuals to adopt visual media via platforms other than traditional cable and satellite TVs. Non-conventional platforms, such as desktops, mobile phones, Over The Top (OTT) media platforms, and social media applications are enabling advertisers to enhance their service delivery methodologies to offer new revenue channels for marketers and broadcasters. Furthermore, these digital video contents are programmed to run on various platforms and in several formats to ensure maximum reach, thus enabling a better engagement rate.

Digital Video Advertising Market size, by type

The development of new methods such as vertical filming and 360° digital videos has given rise to significant opportunities for the growth of the market for digital video advertising. These modern techniques of videography offer a different perception of the subject being advertised, as compared to traditional methods, thus attracting new customers. Furthermore, these methods provide advertisers the ability to conceptualize and create more successful advertising campaigns, thus promoting brands to leverage digital video advertising methods. Advancements in video filming technology have also led to newer and better-recording equipment, which enables videographers to capture high quality and detailed videos of smaller durations, which are more effective in delivering brands’ messages to audiences.

Emerging adoption of connected TVs amongst individuals is promoting brands and marketers to adopt digital video advertising methodologies. The provision to access an individual’s social media accounts, analyze viewing trends, and effective search engine optimization, enables brands and marketers to offer relevant advertisements to people. Connected TV supports the transmission of highly personalized, targeted, and HD-quality ads, which boost brand exposure and promotes brand loyalty. Furthermore, the ongoing trend amongst people to avoid skipping on ads on TVs enables marketers to portray brand messages more effectively, thus offering an impetus to market growth.

The growing usage of OTT platforms by several individuals worldwide has offered advertisers the opportunity to penetrate the market more efficiently. The availability of high-speed internet at affordable prices and incrementing demand of users to access subscription-free distribution of content is providing marketers higher chances to enhance reach and facilitate efficient revenue generation. The ability to practice different types of advertising, such as pre, mid, and post-roll advertising and the provision of not skipping ads by closing ad windows, offers higher chances to brands and agencies to put forward their message to audiences. Moreover, in-banner digital video ads and companion ads also allow marketers to take forward their marketing campaigns while ensuring that viewers’ viewing experience is not hampered, which promises continued growth opportunities.

Digital Video Advertising Market Trends

The pandemic caused lockdowns and work from home situations. People were unable to leave their homes which drove the online advertising industry. People got more interested in online portals and social networking sites, resulting a growth in the utilization of the internet and the amount of digital content consumed by people. Many firms are now seeking to transfer their advertising to digital platforms as most end consumers already operate online. Moreover, higher technical improvements and increased digital spending are likely to drive the online advertising market growth during the forecast period.

The high costs of digital video advertising have been one of the major hindrances to its growth. As a result of the rise in the use of social media and digital content, advertisements have increased dramatically in recent years. Small businesses are experiencing delayed demand  as the cost of digital video commercials is greatly dependent on the quality of the content, the volume of traffic necessary, and other criteria.. Furthermore, to reach a bigger audience, digital advertising on some of the most popular and largest channels, such as YouTube, Facebook, and others require heavy investments. This is anticipated to hamper the market growth.

Owing to the advertisement campaigns on e-commerce sites, the introduction of digital video advertising aids in the promotion and sales of businesses. Furthermore, huge emerging e-commerce companies such as Amazon, Flipkart, and others have been generating significant revenues through online advertising on gaming platforms, television, social networking platforms, and others, thus, allowing them to sell their products more efficiently. High quality digital video content presentation aids in driving investments in e-commerce products that are featured on many platforms by drawing consumers' attention in short time intervals. This is boosting the demand for video advertising among businesses and is expected to drive market growth during the forecast period.

Type Insights

The desktop segment captured the largest revenue share of over 62.0% in 2019. Changing lifestyles and preferences amongst consumers is leading to the shift from viewership of TV to other digital media platforms. The general trend amongst users to access multimedia content via desktops and laptops due to better viewing experience is promoting advertisers to adopt desktop as a preferred channel to indulge in advertising practices. Advertising on desktops enables advertisers to deliver ads on larger screens, which creates a better impact on audiences as well as drives them to undertake specific actions such as purchasing or signing up for particular services.

The mobile segment captured significant revenue share in the market for digital video advertising in 2019 and is expected to witness the highest growth rate over the forecast period. The growth can be attributed to the high penetration rate of affordable smartphones and an increasing trend amongst people to gain access to content according to their convenience. Several mobile games offer game credits or game coins to the players in exchange for viewing digital video ads between games, thus offering advertisers a new channel to enhance their reach. Furthermore, location access for mobile phones provided by service providers enables advertisers to understand demographic trends of a region, thus allowing them to engage in advertisement practices specific to viewing patterns of people in a particular area.

Industry Vertical Insights

The retail industry segment captured the largest revenue share of 22.3% in 2019. Digital video advertising via mobiles and desktops allows brands and marketers to identify and analyze search results using cookies, which givers retailers an in-depth understanding of peoples’ needs and demands. Understanding peoples’ needs and desires offers offline retailers a chance to enhance customers’ in-store experience by providing products according to their requirements. Furthermore, digital video advertising can also be used in stores to facilitate interactive customer experiences, thus improving effectiveness in advertisement campaigns and ensuring efficient consumer acquisition.

Digital Video Advertising Market share, by industry vertical

The media and entertainment segment captured significant revenue share in the digital video ad market in 2019. Digital video advertising enables media and entertainment providers to advertise their content by showcasing trailers and teasers of upcoming content. Increasing penetration of social media platforms allows media houses to expand their distribution content by offering digital content licensing and production rights, which offers exciting growth opportunities to the market. Moreover, the evolution of OTT media platforms and the rising deployment of digital video advertising practices by media houses on these platforms, by being content providers, facilitates efficient pre-roll digital video advertisements.

Regional Insights

North America emerged as the market leader with more than 34.0% revenue share in 2019. This can be attributed to the high penetration rate of smartphones in the region. Rising needs amongst brands and agencies to capitalize on the burgeoning number of digital viewers and capture a higher percentage of screen time is promoting marketers to adopt digital video advertising practices. Furthermore, increasing scenarios of cord-cutting and incremental trend amongst people in this region to shift from traditional cable TVs to OTT media delivery platforms is providing growth opportunities for the market.

Digital Video Advertising Market Trends by Region

Asia Pacific captured significant market share in 2019 and is expected to attract the highest CAGR over the forecast period. The provision of affordable high-speed internet services in the region facilitates wide-scale adoption amongst people, thereby promoting advertisers to leverage digital media as a means of video advertising. The rise in social media usage in the area offers new revenue generation channel to advertisers, which further promotes market growth opportunities. The emergence of short video applications, such as Kuaishou and TikTok and its large user base in the subcontinent is encouraging marketers and brands to leverage these platforms for digital video advertising purposes.

Key Companies & Market Share Insights

Organizations worldwide have started engaging in digital video bidding practices to offer better quality ad content to their viewers. Companies have also begun investing in new development centers and operational bases to attract better talent and facilitate efficient business growth. For instance, in September 2017, Conversant LLC opened its new operations base in Virginia, to capitalize on the potential expertise available in the region.

Additionally, established players are undergoing partnerships with data analytics companies to measure the effectiveness and engagement rates of their advertising campaigns. This enables organizations to take necessary measures as and when required. Companies have also undergoing technological disruption to offer better services to their clients. For instance, PubMatic Inc., in June 2019, launched a cloud-powered supply-side platform (SSP) to provide more price-friendly advertisement models to its clients.

Recent Developments

  • Tremor International, a global leader in video and connected TV advertising, has announced its partnership with Fyllo, a compliance first platform that provides data driven marketing and regulatory solutions for high growth industries. This connection will enable advertisers to reach out to high spread and premium audiences, and publishers to maximize yield on their digital advertising inventory

  • In June 2021, Clinch and DeepIntent teamed up to deliver targeted digital pharma ads to patients.Pharma marketers will be able to test customized messages across numerous digital channels including a display, online video, and CTV, and make real time adjustments . Therefore, by this teaming up, DeepIntent can constitute 20 times increase in its CTV spending

  • In February 2021, D.A.Consortium Inc. announced that Spotify AB has been recognized as Spotify Advertising Partner. Through its DSP MarketOne, DAC will work directly with Spotify to offer reservation-based marketing

Some prominent players in the digital video ad market include:

  • Conversant LLC

  • Longtail Ad Solutions, Inc.

  • Tremor International Ltd.

  • Verizon Media

  • Viant Technology LLC

Digital Video Advertising Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 26.3 billion

Revenue forecast in 2027

USD 292.4 billion

Growth Rate

CAGR of 41.1% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Type, industry vertical, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; China; India; Japan; Brazil

Key companies profiled

Conversant LLC; Longtail Ad Solutions, Inc.; Tremor International Ltd.; Verizon Media; Viant Technology LLC

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Digital Video Advertising Market Segmentation

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global digital video advertising market report based on type, industry vertical, and region.

Global Digital Video Advertising Market Segmentation

  • Type Outlook (Revenue, USD Billion, 2016 - 2027)

    • Desktop

    • Mobile

  • Industry Vertical Outlook (Revenue, USD Billion, 2016 - 2027)

    • Retail

    • Automotive

    • Financial Services

    • Telecom

    • Consumer Goods & Electronics

    • Media & Entertainment

    • Others

  • Regional Outlook (Revenue, USD Billion, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • The U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • MEA

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