Video Advertising - Latvia | Statista Market Forecast

Ad spending in the Video Advertising market is projected to reach US$42.0m in 2024.
Ad spending is expected to show an annual growth rate (CAGR 2024-2028) of 4.75%, resulting in a projected market volume of US$50.6m by 2028.
With a projected market volume of US$85bn in 2024, most revenue will be generated United States.
In the Video Advertising market, US$34.3m of total ad spending will be generated through mobile in 2028.
The average ad spending per internet user in the Video Advertising market is projected to amount to US$25.4 in 2024.
Connected TV ad spending in the Video Advertising market is projected to reach US$3.9m in 2024.
Connected TV is expected to show an annual growth rate (CAGR 2024-2028) of 4.64%, resulting in a projected market volume of US$4.7m by 2028.
Ad spending on short-form videos in the Video Advertising market is projected to reach US$17.9m in 2024.
Ad spending on short-form videos is expected to show an annual growth rate (CAGR 2024-2028) of 10.12%, resulting in a projected market volume of US$26.3m by 2028.

Definition:
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 Video Advertising.

Additional information:
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 Video Advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in 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)

Digital video advertising has changed over time: It started with video ads on computer screens, then moved on to YouTube, mobile screens, social media platforms, connected devices, and video-on-demand. Digital video advertising has become more popular over time as people watch more online video content, moving away from TV and toward smart connected devices. As expected, OTT (over-the-top) advertising is used by marketers for storytelling. OTT content, which can be delivered on demand and directly to users' smart TVs, computers, or smartphones that are connected to the internet, is ushering in a new era of video advertising.

The main cause for the increase in digital video ads is the improvement of the internet infrastructure and the affordability of smart devices that can connect to the internet, such as smart TVs, computers, and smartphones. In the past ten years, the internet infrastructure has changed significantly and is now more accessible, faster, and more affordable. Digital video advertising has experienced substantial growth because connected devices have become cheaper over time, allowing more people to purchase them and use them daily.

Even though digital video advertising was already growing before the COVID-19 pandemic, it experienced a rapid increase since the pandemic started, because people have been spending significantly more time on consuming digital video content. TikTok’s increasing popularity during the pandemic, the noticeable prevalence of the short video format, and the increase in ad-supported video-on-demand are the main reasons why people spend more time on digital video content. Digital video advertising will continue to gain importance significantly because consumers watch more digital video content.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on 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 annual financial reports of the market-leading companies and industry associations, third-party reports, web traffic, and survey results from our primary research (e.g., Statista Global Consumer Survey) to analyze the markets. 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, media consumption, 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 Digital 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.