Digital Video Advertising - Europe

Ad spending in the Digital Video Advertising market in Europe is forecasted to reach US$23.98bn in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2030) of 4.47%, leading to a projected market volume of US$31.18bn by 2030.
With a projected market volume of US$85.39bn in 2024, most revenue will originate from the United States within the European market.
In 2030, 84% of total ad spending in the Digital Video Advertising market in Europe will come from mobile platforms.
The average ad spending per internet user in the Digital Video Advertising market in Europe is anticipated to be US$32.24 in 2024.
Connected TV ad spending within the Digital Video Advertising market in Europe is estimated to reach US$2.99bn in 2024, with an expected CAGR of 4.78%, resulting in a projected market volume of US$3.95bn by 2030.
Ad spending on short-form videos in the Digital Video Advertising market in Europe is projected to reach US$11.71bn in 2024 and is predicted to grow annually at a rate of 8.55%, leading to a projected market volume of US$19.16bn by 2030.
In Europe, Germany leads in implementing advanced targeting techniques in Digital Video Advertising, setting a high standard for personalized and effective ad campaigns.

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 Europe is experiencing significant growth and development, driven by changing customer preferences and the increasing adoption of digital platforms.

Customer preferences: Customers in Europe are increasingly turning to digital video advertising as a preferred method of consuming content. This shift can be attributed to the convenience and flexibility offered by digital platforms, allowing users to access video content anytime and anywhere. Additionally, the rise of mobile devices has further fueled this trend, as consumers can now watch videos on their smartphones and tablets on the go.

Trends in the market: One major trend in the Digital Video Advertising market in Europe is the increasing use of programmatic advertising. Programmatic advertising allows for the automated buying and selling of ad inventory, making the process more efficient and targeted. This trend is driven by the desire for advertisers to reach their target audience more effectively and optimize their ad spend. Programmatic advertising also enables real-time bidding, allowing advertisers to bid for ad space in real-time based on the specific audience they want to reach. Another trend in the market is the growth of video-on-demand (VOD) services. VOD platforms, such as Netflix and Amazon Prime Video, have gained popularity in Europe, offering a wide range of video content that can be streamed on-demand. Advertisers are increasingly leveraging these platforms to reach their target audience, as they provide a captive audience and the ability to target specific demographics.

Local special circumstances: Europe is a diverse region with different languages, cultures, and regulations, which can impact the Digital Video Advertising market. Advertisers need to consider these local special circumstances when developing their advertising strategies. For example, different countries may have different regulations regarding data privacy and advertising practices, which can affect the targeting capabilities and the types of ads that can be shown.

Underlying macroeconomic factors: The growth of the Digital Video Advertising market in Europe can also be attributed to underlying macroeconomic factors. The European economy has been steadily recovering from the global financial crisis, leading to increased consumer spending and advertising budgets. Additionally, the high internet penetration rate in Europe and the increasing availability of high-speed internet connections have created a favorable environment for digital video advertising to thrive. In conclusion, the Digital Video Advertising market in Europe is experiencing significant growth and development, driven by changing customer preferences, the increasing use of programmatic advertising, the growth of video-on-demand services, local special circumstances, and underlying macroeconomic factors. Advertisers in Europe need to adapt to these trends and consider the unique characteristics of each market to effectively reach their target audience and maximize the impact of their digital video advertising campaigns.

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.