Digital Video Advertising Market Size Soars Amid Growing Online Video Consumption and Advertiser Investments

The digital video advertising market was valued at $53.23 billion in 2021, and is estimated to reach $712.6 billion by 2031, growing at a CAGR of 29.6% from 2021 to 2031.

Digital video advertising is the process of displaying ads either inside online video content usually before, during or after a video stream, known as pre-roll, mid-roll and post-roll or as standalone ads. In addition, majority of video ads are bought, sold and displayed programmatically using various targeting methods and may also include interactive elements.

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Furthermore, increase in usage of digital media and growing adoption from e-commerce sector is boosting the growth of the digital video advertising market. In addition, the increase in global penetration of smartphones and internet is positively impacts the growth of the digital video advertising market. However, the risk of security incidents on networks and the high costs of digital video advertising is hampering the digital video advertising market growth. On the contrary, rising innovations in the digital advertising Industry is expected to offer remunerative opportunities for the expansion of the during the digital video advertising market forecast

Depending on industry vertical, the retail industry segment holds the largest digital video advertising market share as it allows brands and marketers to identify and analyze search results using cookies, which givers retailers an in-depth understanding of peoples' needs and demands. However, the media and entertainment segment are expected to grow at the highest rate during the forecast period, owing to increasing penetration of social media platforms allow media houses to expand their distribution content by offering digital content licensing and production rights.

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Region-wise, the digital video advertising market size was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to, high penetration rate of smartphones. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increasing the adoption of smart devices, OTT platforms, social media platforms.

The digital video advertising market has witnessed stable growth during the COVID-19 pandemic, owing to advertisers increasingly turning to digital video advertising as a result of technological improvements and changing customer behavior. Furthermore, individuals are increasingly adopting visual media via venues other than traditional cable and satellite TVs. Non-traditional platforms, such as computers, mobile phones, OTT media platforms, and social media applications, are allowing advertisers to improve their service delivery techniques and open new revenue streams for marketers and broadcasters.

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The COVID-19 pandemic has resulted in changes in model performance, as more continuous monitoring and validation is required to mitigate various types of risks, compared to static validation and testing methods, which, in turn, drive the development of advanced technology models. In addition, with rapid digital transformation, various governments have introduced stringent regulations to protect end users' data such as The Federal Trade Commission (FTC) regulates the content of digital video advertising industry and disclosures made in privacy policies through Section 5 of the FTC Act, which prohibits unfair and deceptive acts or practices, General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Thus, governments in various countries have taken strict actions toward the defaulters of COVID-19 regulations, and natural language processing technology is helping end-users to scan their internal policies as well as Ads that cause economic injury, and other compliance with different regulatory policies.

However, COVID-19 pandemic is making it even harder for larger companies to keep pace, and even more difficult for midsize and smaller companies to adopt AI technologies, owing to long development timelines and high investment requirements.

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The key players profiled in the digital video advertising market analysis are Advertise.com, Conversant Solutions, LLC., Tremor International Ltd., SpotX Inc, Viant Technology LLC, Legacy Pro Co LLC, MultiVisionDigital, PubMatic, Inc., WebFX, and Levitate Media, LLC. These players have adopted various strategies to increase their market penetration and strengthen their position in the digital video advertising industry.

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