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Video Advertising Trends
The video advertising industry shows no signs of slowing down, with projections signaling remarkable growth in 2024 and the years to come
Here are some video advertising trends to watch out for in 2024
1. Video Advertising Will Continue To Grow
According to eMarketer, all video advertising (including long-form video, short-form video, ad-based videos on-demand/connected TV, national TV networks and local TV) will grow by 4 7% in 2024
By 2025, it is projected to reach $91 95 billion, and by 2027, it will surpass $100 billion for the first time, reaching $105 9 billion
2. Short-Form Video & UGC Will Continue in Their Popularity
Per Avatar Studios, two popular video formats short-form, TikTok-style B2C videos and user-generated videos will remain popular in 2024, reflecting the dominance of TikTok and user-generated content (UGC) in consumer video consumption
As a result, many companies will focus on using both formats in their advertising efforts B2C brands that have capitalized on this trend have reported more ROI from short-form videos, which brands may likely continue seeing in 2024
$91.95 Billion
Video advertising spend is predicted to grow to this amount by 2025
Source: Statista
3. Connected TV (CTV) Is Here To Stay
With linear TV viewership predicted to continue to decline, CTV is showing no signs of stopping in its growth eMarketer anticipates that CTV households will more than double traditional pay TV households in 2024, reaching 115 1 billion
CTV advertising will follow suit According to GroupM’s mid-year forecast, CTV global advertising will have an annual compounded growth rate of 10 4% from now to 2028 Its growth will be driven by several factors per eMarketer including:
Access to real-time, data-driven insights
More precise audience segmentation capabilities
Higher ad recall and engagement rates because you can’t skip CTV ads
The significant surge in CTV advertising is impacting advertising strategies and budgets as CTV emerges as the ideal channel to reach specific target audiences
4. YouTube Viewership & Ad Spending Will Increase
An analysis conducted by Tinuiti in Q2 2023 revealed a significant surge in ad spending on YouTube, outpacing its streaming competitors Tinuiti’s clients witnessed a remarkable 31% increase in YouTube CTV spending during this time, while streaming services like Max and Netflix experienced more modest growth of just 6%
Notably, viewership of YouTube on TV screens has been steadily rising, reaching a level on par with mobile viewing at 15 minutes YouTube has harnessed this growing viewership by introducing user-friendly features and expanding its offerings, including bringing Shorts to TV screens
Overall, eMarketer forecasts that YouTube’s growth will reach double digits in 2024 and 2025 and will exceed Hulu by 2025, making it #1 in terms of U S CTV ad revenues by company surpassing other competitors like Roku, Pluto TV, Peacock and Tubi
115.1 Billion
The number of CTV households we ' re anticipated to see by 2024 more than double traditional pay TV households
Source: eMarketer
31% Increase
Tinuiti's clients saw this in YouTube CTV spending in Q2 2023
Source: Tinuiti
