Digital Video Advertising Market Report 2026

The digital video advertising market size has grown exponentially in recent years. It will grow from $140.28 billion in 2025 to $188.76 billion in 2026 at a compound annual growth rate (CAGR) of 34.6%. The growth in the historic period can be attributed to expansion of digital media consumption, growth of social media platforms, increasing mobile internet penetration, rising adoption of online video streaming, demand for measurable advertising outcomes.

The digital video advertising market size is expected to see exponential growth in the next few years. It will grow to $615 billion in 2030 at a compound annual growth rate (CAGR) of 34.4%. The growth in the forecast period can be attributed to increasing investments in ai-driven ad targeting, rising demand for interactive video formats, expansion of connected tv advertising, growing focus on data-driven marketing strategies, increasing adoption of immersive video ad experiences. Major trends in the forecast period include increasing adoption of programmatic video advertising, rising demand for personalized video campaigns, growing use of short-form video ads, expansion of cross-platform advertising strategies, enhanced focus on performance-based video metrics.

The rising usage of digital media is anticipated to propel the growth of the digital video advertising market in the coming years. Digital media refers to communication channels that utilize various encoded machine-readable data formats. It supports the digital video advertising market by promoting different company brands, and the surge in digital media consumption across multiple platforms has created new opportunities. For example, according to Forbes, a US-based global media company, in 2023, the number of global social media users reached a record 4.9 billion, with projections suggesting this figure will rise to approximately 5.85 billion by 2027. Thus, the increasing use of digital media is driving the expansion of the digital video advertising market.

Major companies in the digital video advertising market are concentrating on integrating live images to enhance their advertising capabilities. This strategy facilitates dynamic and visually appealing content that captures viewers' attention, increasing brand visibility and engagement. For example, in September 2024, Amazon Ads, the online advertising division of Amazon.com, Inc., a US-based multinational technology company, launched new AI-driven tools designed to enhance advertising capabilities for brands, including a Video Generator and Live Image feature. These tools enable the rapid creation of engaging video ads and animated images from a single product image. The Video Generator allows advertisers to produce custom videos that highlight key product features in just minutes and at no additional cost, addressing common time and budget constraints in video marketing.

In August 2024, Outbrain, a US-based company, acquired Teads from Altice Teads S.A. for $1 billion. This acquisition strengthens Outbrain's position in the digital advertising space by allowing it to incorporate premium video advertising solutions into its current offerings. Teads is a US-based media company that offers a cloud-based, omnichannel platform for programmatic digital advertising across a global network of high-quality digital media.

Major companies operating in the digital video advertising market include Google LLC, Verizon Media, Comcast, Meta Platforms Inc., Tencent Holdings LTD, ByteDance LTD, Amazon Advertising, LinkedIn Corporation, Snap Inc., Twitter Inc., Hulu Ad Manager, Roku Inc., Pinterest Inc., The Trade Desk Inc., Youku Tudou Inc, Vimeo Ads, Tremor International LTD, Samsung Ads, PubMatic Inc., PubMatic, Viant Technology LLC, Tubi Advertising, InMobi, Conversant LLC, ZypMedia, Adobe Advertising Cloud, Smaato, OpenX, AdColony, Magnite Inc., Criteo S.A., AdRoll, Amobee, Adform, Unity Technologies, Kargo Global Inc., Unity Ads

North America will be the largest region in the digital video advertising market in 2025. The regions covered in the digital video advertising market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital video advertising market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The digital video advertising market consists of revenue earned by entities by providing digital video ads including linear video ads such as pre-roll, mid-roll, as well as post-roll and nonlinear ads such as in-stream, overlay ads, and non-overlay ads among others. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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