Digital Video Advertising Market Size, Share & Demand By 2031

(MENAFN- Straits Research) Digital video advertising promotes products, services, and brands via video content distributed via digital channels such as websites, social media, mobile applications, and streaming services. The procedure entails creating and distributing video advertisements to reach and engage target audiences. Some digital video advertising formats available are pre-roll, mid-roll, post-roll, and in-stream advertisements in online video content.
This allows advertisers to reach consumers on devices like desktop computers, smartphones, tablets, and smart TVs. Digital video advertising's advantages lie in effectively conveying brand messages to viewers through dynamic graphics, audio, and narratives. It provides opportunities for precise targeting through metrics such as views, clicks, and engagement rates, allowing advertisers to target consumers with specific interests or demographics.
Market Dynamics
Incremental Penetration of OTT Media Streaming Platforms Drives the Global Market
As OTT media streaming platforms continue to grow in prominence, the industry for digital video advertising has enormous growth potential. These platforms increase the opportunities for brands and marketers to communicate with and engage with consumers. In addition, cord-cutting and diversified revenue streams may result from the increasing market share of OTT media companies. The requirement for multiple platforms, such as desktop computers and mobile devices, enables advertisers to develop new formats and offer mobile-first experiences to consumers. Thanks to advanced analytics tools and software, OTT platforms can increase advertising expenditures and produce new programs and series.
These tools provide insightful commentary on the efficacy and reception of content and the performance of commercial films. As evidence of the increased demand for advertising space in the OTT ecosystem, Amazon's Amazon Advertisement Services offer OTT and out-stream video advertisement services to companies in the beauty, consumer electronics, and entertainment industries.
Computerized Advertising Creates Tremendous Opportunities
Digital video advertising is inferior to programmatic advertising, which employs automated systems and algorithms for ad buying and placement. Digital video advertising employs both manual and algorithmic processes. This is because programmatic advertising enables greater efficacy and precision than digital video advertising. One of the disadvantages of digital video advertising is that it lacks this particular advantage. Given that it enables marketers to target particular audiences, optimize campaign performance in real-time, and benefit from data-driven insights, the market for programmatic video advertising has substantial growth potential. As a direct result, the industry has significant latent growth potential.
Regional Analysis
North America is the most significant global digital video advertising market shareholder and is estimated to exhibit a CAGR of 36.4% over the forecast period. There is a high likelihood that these phenomena can be attributed to the high percentage of people in this region who own cell phones. Marketers are beginning to use digital video advertising methods due to rising needs among brands and agencies to capitalize on the growing number of digital viewers and capture a larger percentage of screen time. This is one of the reasons why marketers are beginning to use digital video advertising methods. Marketers find this a compelling reason to adopt advertising tactics based on digital video.
Additionally, an increasing number of consumers in this region are canceling their cable subscriptions and beginning to adopt the incremental trend of switching from traditional cable TVs to over-the-top (OTT) media delivery systems, creating development potential for the industry. This shift occurs due to the incremental trend of moving from traditional cable TVs to over-the-top (OTT) media delivery systems.
Asia-Pacific is anticipated to exhibit a CAGR of 46.1% over the forecast period. Because consumers can more easily adopt the technology on a big scale due to the availability of competitively priced high-speed internet services in the region, advertisers are encouraged to use digital media to deliver video commercials. The rising number of individuals in this region who use social media offers advertisers a new channel for the collection of income, which further increases the prospects for the expansion of the market.
Furthermore, the growth of short video applications like Kuaishou and TikTok and their enormous user populations in the subcontinent are leading marketers and businesses to use these platforms for digital video advertising. Other examples of these types of applications are Snapchat and Instagram Stories. These applications include Kuaishou and TikTok as just a couple of examples.
Key Highlights

The global digital video advertising market size was valued at
USD 9.02 billion in 2022.
It is estimated to reach
USD 35.19 billion by 2031,
growing at a
CAGR of 16.33%
during the forecast period (2023–2031).
Based on the product, the global digital video advertising market is bifurcated into desktop and mobile. The desktop segment dominates the global market and is projected to exhibit a CAGR of 39.7% over the forecast period.
Based on industry verticals, the global digital video advertising market is divided into retail, automotive, financial services, telecom, consumer goods, and electronics. The retail segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 34.3% over the forecast period.
North America is the most significant global digital video advertising market shareholder and is estimated to exhibit a CAGR of 36.4% over the forecast period.

Competitive Players
The key players in the global digital video advertising market are Conversant LLC, Longtail Ad Solutions, Inc., Tremor International Ltd., Verizon Media, and Viant Technology LLC.
Market News

In April 2023,
to enable marketers to use deep, cookie-free, and contextual TV data to target and measure activations efficiently, Viant Technology Inc. teamed with IRIS. The collaboration would provide marketers with greater precision and aid businesses in providing customers with targeted adverts.
In February 2023,
to reduce the carbon footprint of its digital advertising efforts, Viant Technology Inc. partnered with Scope3 and committed to achieve carbon-neutral energy use.

Global Digital Video Advertising Market: Segmentation
By Product

Desktop
Mobile

By Industry Vertical

Retail
Automotive
Financial Services
Telecom
Consumer Goods and Electronics

By Regions

North America
Europe
Asia-Pacific
Latin America
The Middle East and Africa

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