DUBLIN--(BUSINESS WIRE)--The "Global Digital Video Advertising Market - Forecasts from 2021 to 2026" report has been added to ResearchAndMarkets.com's offering.
The digital video advertising market is projected to witness a compound annual growth rate of 20.89% to grow to US$155.18 billion by 2026, from US$41.132 billion in 2019.
The market is expected to surge in the coming years, due to the rise in the number of internet and smartphone users, increasing investment by firms to enhance their advertising portfolio and other related factors. According to the data given by the World Bank, there were over 48.997% of the global population using the internet in the year 2019. Moreover, the rise of social media is also expected to play a major role in the market.
Major companies have been using social media as an advertising platform, intending to enhance and present their product to a wider and larger audience. Furthermore, growing digital video advertising to create and build awareness about certain social issues is also expected to play a major role in the market, during the forecast period.
Increase usage of social media is the prime factor that is expected to drive the market growth during the forecasted period
The market is expected to surge in the coming years, due to the rising use of social media, worldwide. According to several official data, there are around 2.6 billion Facebook users, 2 billion YouTube users, and around 1 billion Instagram active users in the year 2021. The increasing usage of social media is expected to propel the digital video advertising market growth. According to the Interactive Advertising Bureau's annual report, digital video advertising has been projected to represent around 56% of the total video spending in the year 2021.
According to Nestle, 72% of Instagram users have purchased a product that they had seen on Instagram. Major companies from various industries have been investing a significant sum of capital into digital video advertising solutions in social media. For instance, in the automotive industry, BMW and other key players have been building anticipation and excitement through teaser videos targeting specific and key users before the launch.
Social media has been playing a key and major role in their advertising portfolio. YouTube has been providing its customers with video advertising service and platform that helps a business connect to their customer base. There is a significant number of users using YouTube, which is expected to play a major role in the market growth. Instagram, according to several official industrial sources, around 500 million people use Instagram stories daily. These trends and developments are expected to enhance the market growth in the coming years.
Smartphones are expected to hold a significant share of the market owing to increased smartphone users and usage
Based on device type, the global video advertising market is segmented into smartphones, tablets, laptops, and others. During the forecast period, the smartphone segment is expected to hold a significant share of the market owing to rising smartphone users and usage. The smartphones of today are equipped with internet connectivity which has opened avenues of digital video advertising especially over social media platforms and OTT platforms.
The video advertisements can capture the user's attention in a short period compared to the traditional practices. Factors such as an increase in mobile devices, economical internet plans, growth of Wi-Fi connectivity, increasing participation on social media platforms, time spent online, growth of e-commerce, and m-commerce are the key drivers of the digital advertisement market through smartphone devices.
Social media marketing is another important but new player in the field of digital advertisement. As people spend more and more time on Instagram, Snapchat, Facebook, and the like, brands make use of this opportunity to market their products. Collaborations with celebrities and influencers, innovative advertising approaches like memes have fueled the market even further. Popular video-sharing platforms like YouTube, TikTok, Twitch, etc. have included advertising in their videos along with OTT platforms like Netflix, Amazon Prime, Disney+, etc.
Digital ads on mobile are now a significant share of internet advertising spending which aids the brands to generate revenues even on a higher scale. Consumers are more frequently consulting their smartphones to help them make everyday decisions assisting the advertisement market even further. On the downside, the question of data privacy and security is put up. IT giants like Google in 2020 eliminated support for third-party cookies on the Google Chrome browser to ensure data privacy.
Pandemic Insights
Major companies have been making significant developments in the market, in the past few years. For instance, in August 2021, YouTube announced that it had tapped ComScore for a novel measurement initiative that would provide connected video and TV advertising buyers a proper and clearer picture of the platform. In July 2021, The Interactive Advertising Bureau announced that it had been planning a virtual four-day industry event in September 2021 to promote the digital ecosystem. The event would introduce a novel marketplace for connected TV and digital video buyers.
The COVID-19 has turned out to be a boon for the digital video advertising players as the revenue generation opportunity is estimated to increase by an additional US$2.49 billion in 2020 in comparison to the no COVID-19 scenario. Many leading market players for digital video advertising witnessed revenue growth in 2020. The digital push provided by the pandemic is anticipated to surge digital advertisement spending in the coming years.
Market Segmentation
By Device Type
- Smartphones
- Tablets
- Laptop
- Others
By End-user Industry
- Retail
- Automotive
- Healthcare
- Education
- Others
By Geography
- North America
- South America
- Europe
- Middle East & Africa
- Asia Pacific
Companies Profiled
- Tremor Video Inc.
- Microsoft Advertising
- FruitBowlDigital
- Chatter Buzz
- Brafton
- Ally Digital Media
- Digital Silk
- Stickyeyes
- Supercool Creative
- Demo Duck
For more information about this report visit https://www.researchandmarkets.com/r/bxfk6m
