Video Advertising Agency Market Outlook Report 2025-2031: Connected TV and OTT Advertising Expansion Presents Opportunities - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Video Advertising Agency Market Report: Trends, Forecast and Competitive Analysis to 2031" has been added to ResearchAndMarkets.com's offering.

The global video advertising agency market is expected to grow with a CAGR of 8% from 2025 to 2031. The major drivers for this market are the increasing demand for digital advertising, the growing adoption of video marketing strategies, and the rising consumer engagement with online video content.

Key Highlights by Segment

• Within the service type category, creative & production is expected to witness the highest growth over the forecast period.
• Within the end use category, entertainment is expected to witness higher growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.

Emerging Trends in the Video Advertising Agency Market

The market is trending towards more data-centric and personalized models, largely driven by AI and data analytics for hyper-personalization. The adoption of Connected TV and OTT advertising is opening a new video advertising frontier, combining the reach of TV with digital targeting precision. Rising demand for short-form and vertical video content is influencing creative processes, making video ads more mobile-friendly. Moreover, the integration of shoppable and interactive video features and the emphasis on user-generated content foster greater engagement and trust.

Recent Developments in the Video Advertising Agency Market

The industry is moving towards automated solutions with programmatic advertising improving targeting efficiency. Growth in Connected TV and OTT services is expanding media offerings. A focus on integrating campaigns across platforms is enhancing brand strategy and budget utilization. Advanced analytics and measurement tools now provide better campaign insights. In-house video capabilities are challenging traditional agency models, incentivizing agencies to differentiate through creative innovation and specialized services.

Strategic Growth Opportunities

Strategic growth opportunities include expanding services in Connected TV and OTT advertising, harnessing short-form video, and focusing on performance-based advertising linked to e-commerce. Personalized and dynamic video content offers new avenues for engaging consumers. Additionally, video content for B2B marketing presents untapped potential, offering agencies opportunities to provide high-value, professional services.

Market Drivers and Challenges

Key drivers include the growth in online video consumption, high engagement levels from video ads, and advancements in advertising technologies. However, challenges such as fragmented media landscapes, high production costs, and difficulties in ROI measurement persist. Agencies must innovate in content creation strategies and invest in robust measurement systems to stay competitive.

Country Wise Outlook for the Video Advertising Agency Market

The US leads with robust digital infrastructure and a shift towards OTT and CTV services. China's tech landscape excels in AI-driven content and social media marketing, with rapid development in short-form video content. Germany focuses on programmatic marketing with a growing e-commerce influence. India sees booming digital adoption driven by mobile usage, while Japan experiences a migration of ad spending towards dynamic video formats on digital platforms.

List of Video Advertising Agency Companies

Companies in the market compete on the basis of product quality offered. Major players include WPP, Interpublic Group, Omnicom, Bluefocus Intelligent Communications, PublicisGroupe, Liou Group Digital Technology, Dentsu, Hakuhodo, Guangdong Advertising, and Havas Group.

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