The New Era of Video Advertising: A Story of Growth and Innovation

It was a windy Monday morning in 2024 when Anna clicked on her favorite social media app. As she scrolled through the feed, she noticed something: the videos seemed different. They were sharper, more appealing and strangely personal. Anna didn't realize she was part of a global shift in which video advertising had become an unstoppable force – dominating screens and capturing attention in ways traditional ads never could.

This transformation is no coincidence. The video advertising market will make rapid progress $84.6 billion this year. And the projection doesn't stop there. With an annual growth rate of 7.45%this industry will suffer a huge blow $112.8 billion by 2028. As connected devices increase, so do new opportunities to reach consumers across different platforms.

Mobile Advertising: The Unstoppable Growth Engine

Mobile video ads are no longer just an emerging trend – they have become the dominant force in advertising. Predictions suggest that mobile devices will contribute significantly to advertising spending in 2024 $89.7 billion of all video ad spending will come from mobile devices by 2028. For comparison, in-app advertising alone has increased significantly, reflecting how important mobile platforms have become for advertisers and how deeply embedded these ads are in users' daily lives.

These mobile ads are more targeted and personalized as algorithms optimize the content for the user's screen size, habits and preferences. This means that the days of irrelevant and untimely advertising are over. Now brands can catch Anna's attention with a customized ad for her favorite shoes, just moments after she completes a style tips video.

Connected TV: The New Advertising Frontier

As mobile ads increase, Connected TV cuts off its territory. Advertising spending on connected TV platforms – such as streaming services and smart TVs – will decline $22.8 billion in 2024. By 2028, this number is expected to rise to $36.1 billionwith an annual growth rate of 12.23%. This increase is due to more and more households abandoning traditional cable connections in favor of streaming services.

The appeal for advertisers is clear: Connected TV offers the wide reach of television paired with targeted digital precision. Imagine you're streaming your favorite show on a Friday night and suddenly see a compelling, interactive ad for a new product you've been thinking about for a long time – only this time you can instantly purchase it right on your TV.

The continued growth of this market makes connected TV one of the most promising areas of digital advertising. As brands explore increasingly attractive formats and increase their investments, expect a wave of innovation in this space.

Short videos: Big impact in small packages

Another important growth driver is Short videos. Whether it's a 10-second TikTok or a short ad on Instagram Reels, brands have learned that short videos are one of the most effective ways to quickly engage users. In 2024, ad spending on short videos is expected to increase $38.8 billionwith an expected growth rate of 12.54%. By 2028, this number will increase to $62.2 billion.

This format is valuable for reaching younger audiences with shorter attention spans. A single, catchy clip can start a trend or sell out a product in minutes. It's fast, effective and everywhere.

Video advertising trends

When considering the future of video advertising, two formats stand out as growing the fastest: Short videos And Connected TV. Short-form video ads, commonly seen on platforms like TikTok and Instagram Reels, are expected to grow impressively 12.54% compound annual growth rate (CAGR) from 2024 to 2028, with expected expenditure of approx $62.2 billion until 2028. Meanwhile Advertising on connected televisionwhich benefits from the growing trend of streaming services, is expected to grow by 12.23% CAGRto reach $36.1 billion in the same period. These formats are leading the way as advertisers seek to reach increasingly fragmented and mobile-focused audiences.

Maximizing value per user

Across all platforms, advertisers are investing money in understanding and engaging consumers. In 2024, the average advertising spend per internet user is expected to be $267.3. With more data available, brands can better understand what resonates with their audiences, ensuring every dollar of ad spend is used effectively.

This highly targeted approach is changing the industry from casting a wide net to providing more curated experiences for users like Anna. Whether through social media, in-apps or connected TV, advertisers can reach consumers where they are, with the content they are most likely to engage with.

Outlook: A bright future for video ads

Anna's experience is just a taste of what's to come. As video advertising grows and evolves, it will influence the way we consume content. The possibilities are endless, from shoppable ads that allow us to purchase products with a tap to interactive videos that allow us to choose our advertising journey.

As the industry grows, one thing is clear: video advertising isn't just the future of advertising – it's the present. And for brands looking to grab attention in a world of shrinking attention spans, there's no better time to invest in video.

This isn't just a trend; it is a transformation. And as the year 2028 approaches, with $112.8 billion In terms of spending, we are only at the beginning of the video advertising revolution.