Digital Video Ad Market 2020 and Forecast 2021-2027

  • TBI919546
  • November 05, 2020
  • Global
  • 135 pages
  • IFF Market Research

Report Overview: Digital Video Ad Market

The global digital video advertising market size was valued at USD 18.6 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 30.0% from 2021 to 2027. 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. 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 for digital video advertising 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. 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 2021-2027. 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: Digital Video Ad Market

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. 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: Digital Video Ad Market

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. 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: Digital Video Ad Market

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. Some prominent players in the digital video ad market include:

Key companies Profiled: Digital Video Ad Market Report

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, Trusted Business Insights has segmented the global digital video advertising market report based on type, industry vertical, and region.

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

Table of Contents
Chapter 1 Methodology and Scope
1.1 Market Segmentation & Scope
1.2 Market Definitions
1.3 Information Procurement
    1.3.1 Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum)
    1.3.2 IFF Internal Database
    1.3.3 Secondary Sources & Third Party Perspective
    1.3.4 Primary Research
1.4 Information Analysis
    1.4.1 Data Analysis Models
1.5 Market Formulation and Data Visualization            
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