Global Digital Video Advertising Market was valued at US$41.132 billion in 2019. Digital video advertising is a type of advertising of a particular product or a service in a video format that is viewed on network-connected devices like smartphones, desktop, and tablets. Digital video advertising is an interactive marketing strategy that a company can employ to increase the brand awareness of its particular product or service. The increasing number of people using connected devices along with the penetration of internet connectivity is the major contributor to the market growth of digital video advertising globally. According to the World Bank, the percentage of the population using the internet increased from 6.77% in 2000 to 47.72% in 2017.
With social media growing at a significant rate, advertisers are continuing to seek massive audiences by targeting tech giants such as Facebook and Google. With people using smartphones to use various social media apps such as Facebook and YouTube on their mobile phones, this will lead to spending most of the ad revenue on mobile advertising which will further boost the market growth of the digital video advertising market. Companies are using digital video advertising solutions to lower the advertising cost by targeting a large group of audience on multiscreen at a single go. With a growing population using social media, the chances for non-profits, and businesses to engage their target audience on social media are also growing.
Audiences are nowadays consuming digital content at a higher rate than ever before ranging from mobile video to over-the-top. This is prompting marketers to focus more on developing interactive video content and more efficient buying mechanisms. The booming e-commerce industry is also leading to the evolution of content for ever-increasing internet users, thereby catapulting the digital video advertising market growth. Growing usage of digital video advertising to create awareness about various issues is another major driver of the global digital video advertising market. However, the effect of GDPR and other privacy regulations, particularly on the use of data and AI in making advertisements, are hindering digital video advertising market growth. Advancements in marketing technologies along with the advent of 5G technology will further propel the digital video advertising market growth during the next five years.
Governments across the globe are trying to contain the spread of novel COVID-19 by closing public spaces, schools, and borders. As such, physical events such as sporting events, business conferences, and concerts have been canceled. Almost every company has made work from home mandatory for its employees. As a result of this global pandemic outbreak, marketers are moving toward cheaper and more flexible channels such as programmatic advertising where consumer presence and available impressions are rising. This budget shift is majorly due to the higher consumption rate of digital media due to the online lifestyle of the post-corona consumer. Thus, this pandemic outbreak has positively impacted the digital video advertising market to some extent.
Global digital video advertising market is segmented by device type, end-user industry, and geography. By device type, the market segmentation is done as smartphones, tablets, laptops, and others. The market segmentation by end-user industry is done as retail, automotive, healthcare, education, and others.
By geography, APAC projected to witness a significant CAGR during the forecast period
By geography, the global Digital Video Advertising market is classified into North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC). North America accounted for a significant share in the global Digital Video Advertising market in 2019. Large population base present in Canada and the U.S. using social media platforms such as Facebook, Snapchat, and Instagram is further contributing to the market growth of digital video advertising market in the region. Digital ad spending in the U.S. exceeded $100 billion in 2018, according to the advertising report from the Interactive Advertising Bureau with mobile advertising becoming dominant.The country is witnessing a growing trend towards the development of original video content so as to improve the impact as well as the performance of video advertising campaigns. Thus, rising investments in original video content for use in advertising campaigns is also fueling the digital video advertising market across the region.
Asia Pacific (APAC) will witness a noteworthy CAGR during the forecast period owing to the increasing demand for digital video advertising platforms in countries like China and India. The biggest spenders on digital video advertising include industries such as BFSI, consumer durables, and E-commerce. E-commerce companies are partnering with social media as well as over-the-top (OTT) platforms to ramp up marketing of their products and services. For example, in 2018, Flipkart partnered with Hotstar and jointly launched a video advertisement platform- Shopper Audience Network. The platform enables brands or marketers to place targeted advertisements through personalized video advertising on Hotstar.
Market Players and Competitive Intelligence
Prominent key market players in the global Digital Video Advertising market include VideoNap, Vdopia, Tremor Media, SAY Media, Monsoon Ads, Microsoft Advertising,and Specific Media. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the global Digital Video Advertising market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.