Market Insights Advertising & Media Media TV & Video OTT Video

OTT Video Advertising - Worldwide

Worldwide

Ad spending in the OTT Video Advertising market is projected to reach US$189.60bn in 2024.
Ad spending is expected to show an annual growth rate (CAGR 2024-2029) of 5.83%, resulting in a projected market volume of US$251.70bn by 2029.
With a projected market volume of US$84,610.00m in 2024, most revenue will be generated in the United States.
In the OTT Video Advertising market, [revenuesplit_currentlayer_yearend_advertisingsplitmobile] of total ad spending will be generated through mobile in 2029.
The average ad spending per internet user in the OTT Video Advertising market is projected to amount to US$48.37 in 2024.

Key regions: South Korea, Japan, France, Germany, United States

Market

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Region comparison

Currency

Analyst Opinion

The OTT Video Advertising market in Worldwide is experiencing significant growth and development.

Customer preferences: Customers are increasingly turning to Over-The-Top (OTT) video platforms for their entertainment needs. OTT platforms offer convenience and flexibility, allowing users to access a wide range of content anytime and anywhere. This shift in customer preferences towards OTT video consumption is driving the growth of the OTT Video Advertising market.

Trends in the market: One of the key trends in the OTT Video Advertising market is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to target specific audiences and optimize their ad placements in real-time. This technology-driven approach is gaining popularity in the OTT Video Advertising market as it offers greater efficiency and effectiveness in reaching the target audience. Another trend in the market is the rise of ad-supported OTT platforms. Ad-supported OTT platforms offer free or low-cost access to content in exchange for viewing advertisements. This model is becoming increasingly popular as it allows advertisers to reach a larger audience while providing users with affordable or free access to premium content.

Local special circumstances: In the United States, the OTT Video Advertising market is driven by the high adoption of OTT platforms and the presence of major players in the market. The country has a large population of cord-cutters and cord-nevers who prefer streaming services over traditional TV. This has created a lucrative market for OTT Video Advertising, attracting both domestic and international advertisers. In China, the OTT Video Advertising market is experiencing rapid growth due to the increasing popularity of video streaming platforms such as iQiyi, Tencent Video, and Youku. These platforms have a large user base and offer a wide range of content, attracting advertisers who want to reach the Chinese audience. Additionally, the rise of short video platforms like Douyin (TikTok) has further fueled the growth of the OTT Video Advertising market in China.

Underlying macroeconomic factors: The growth of the OTT Video Advertising market is also influenced by macroeconomic factors such as increasing internet penetration, smartphone adoption, and disposable income. As more people gain access to high-speed internet and smartphones, the demand for OTT video content and advertising opportunities increases. Additionally, rising disposable incomes in emerging markets are driving the growth of the OTT Video Advertising market as consumers have more spending power to subscribe to OTT platforms and engage with video advertisements. In conclusion, the OTT Video Advertising market in Worldwide is experiencing significant growth and development due to customer preferences for convenience and flexibility, the adoption of programmatic advertising, the rise of ad-supported OTT platforms, local special circumstances in different countries, and underlying macroeconomic factors such as internet penetration, smartphone adoption, and disposable income.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on OTT 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., Statista Global Consumer 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.