Digital Video Advertising - Australia & Oceania

Ad spending in the Digital Video Advertising market in Australia & Oceania is forecasted to reach US$3.74bn in 2024.
The expected annual growth rate (CAGR 2024-2030) of 5.83% is anticipated to lead to a market volume of US$5.26bn by 2030.
With a projected market volume of US$85.39bn in 2024, the majority of revenue is forecasted to be generated the United States.
Within the Digital Video Advertising market, 90% of total ad spending is predicted to be generated through mobile in 2030.
The average ad spending per internet user in the Digital Video Advertising market is projected to be US$104.90 in 2024.
Connected TV ad spending in the Digital Video Advertising market is expected to reach US$358.80m in 2024, with an estimated annual growth rate (CAGR 2024-2030) of 4.22%, resulting in a market volume of US$459.80m by 2030.
The ad spending on short-form videos in the Digital Video Advertising market is forecasted to reach US$1.58bn in 2024, with an expected annual growth rate (CAGR 2024-2030) of 9.66%, leading to a projected market volume of US$2.74bn by 2030.
Australia's growing digital video advertising market is driven by increasing internet penetration and demand for targeted, engaging content.

Definition:
Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps on computer screens, smartphones, tablets, and other internet-connected devices. Videos that seamlessly match the form and function of the environment (e.g., news websites, video platforms) in which they appear (so-called native advertising) are also included in Digital Video Advertising.

Additional information:
Digital Video Advertising comprises advertising spending, connected-TV advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending. Figures are based on Digital Video Advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Digital Video Advertising include Comcast Corp., The Walt Disney Company, YouTube, TikTok, and Facebook. For more information on the data displayed, use the info button right next to the boxes.

All ad formats within webpage-based videos, app-based video players, social media networks, or social media apps
Pre-roll, mid-roll, and post-roll video ads
Text- or image-based overlays that appear in video players
Native advertising
Connected TV advertising
Ad spending on short-form videos

Traditional TV advertising video formats broadcasted over traditional transmission channels (e.g., DTT, cable, satellite)
Addressable TV ads, targeted advertising to individual households via set-top boxes; including cable and satellite using addressable technologies such as Dynamic Ad Insertion (DAI)

The Digital Video Advertising market in Australia & Oceania is experiencing significant growth and development.

Customer preferences: Customers in Australia & Oceania are increasingly turning to digital video advertising as their preferred method of consuming content. With the rise of smartphones and the increasing availability of high-speed internet, people are now able to access video content anytime and anywhere. This has led to a shift in advertising budgets towards digital video, as advertisers recognize the effectiveness and reach of this medium.

Trends in the market: One of the key trends in the Digital Video Advertising market in Australia & Oceania is the growth of programmatic advertising. Programmatic advertising allows advertisers to target specific audiences and deliver personalized messages at scale. This has become increasingly important as advertisers look to maximize their return on investment and ensure that their ads are seen by the right people. Programmatic advertising also offers greater efficiency and transparency, as it automates the buying and selling of ad inventory. Another trend in the market is the increasing use of mobile devices for video consumption. With the widespread adoption of smartphones and tablets, more and more people are watching videos on their mobile devices. This has led to a shift in advertising strategies, with advertisers focusing on creating mobile-friendly ads that are optimized for smaller screens. Advertisers are also leveraging mobile-specific features such as location-based targeting and interactive ad formats to engage with their audience.

Local special circumstances: Australia & Oceania is a highly diverse region, with a wide range of cultures and languages. This presents both opportunities and challenges for advertisers in the Digital Video Advertising market. Advertisers need to tailor their ads to local preferences and cultural nuances in order to effectively engage with their target audience. This includes using local languages, featuring local talent, and incorporating local themes and references in their ads. Advertisers also need to be mindful of local regulations and advertising standards, which can vary across different countries in the region.

Underlying macroeconomic factors: The Digital Video Advertising market in Australia & Oceania is also influenced by underlying macroeconomic factors. Economic growth, consumer spending power, and technological infrastructure all play a role in shaping the market. As the economy grows and disposable incomes increase, advertisers have more resources to invest in digital video advertising. Similarly, improvements in internet infrastructure and the availability of high-speed internet contribute to the growth of the market, as it enables seamless video streaming and ad delivery. In conclusion, the Digital Video Advertising market in Australia & Oceania is experiencing growth and development due to changing customer preferences, emerging trends such as programmatic advertising and mobile video consumption, local special circumstances, and underlying macroeconomic factors. Advertisers in the region need to adapt their strategies to cater to the unique needs and preferences of the local audience, while also leveraging the opportunities presented by advancements in technology and infrastructure.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

From six-second bumper ads to multi-minute compilations, video marketing is constantly evolving, and audiences everywhere never fail to tune in. As the number of digital video viewers keeps rising every year, marketers embrace video as a promotional tool more vividly than ever. In 2023, digital video ad spending amounted to almost 176.63 billion dollars. Unsurprisingly, the United States remains the country with the highest spending on digital video ads, followed by China and the United Kingdom. Connected TV (CTV) and social video are among the most popular content marketing tactics worldwide, and the post-pandemic era has only consolidated companies’ dependency on these tools.