Michele Majidi
Researcher
Video advertising and marketing in the U.S. - statistics & facts
It is no secret that digital marketing has become one of the most indispensable promotional tools of the recent past, and video has emerged as a particularly vital component. Few other formats can capture and retain audiences' attention as effectively as video, and the number of digital video-on-demand viewers in the U.S. and many other parts of the world keeps growing every year. Seeing that it has evolved into an essential tool for education, communication, and entertainment during the pandemic, marketers are now focusing on video promotion more vividly than ever.
Channels that have become synonymous with free online video over the last decade are YouTube, Instagram, and TikTok, which boast massive user counts and promise great exposure. Free ad-supported streaming (FAST) services are also on the rise, accounting for almost one-fourth of digital video ad views in the U.S. in 2023. In addition to posting videos and engaging with millions of internet users themselves, companies also embrace user-generated video content and leverage the global phenomenon that is influencer marketing.
While companies can publish videos at practically no cost on social media platforms, websites, or other digital channels, they can also invest large sums into creating memorable video ad campaigns. In 2023, digital video ad spend in the U.S. amounted to around 77 billion U.S. dollars, and according to the latest projections, spending on video ads will surpass the 100-mark by 2027. Unsurprisingly, the lion’s share of this sum is expected to be allocated towards mobile, as consumers increasingly watch digital video content on their smartphones.
Marketer usage: unlocking the value of video
Connected TV (CTV) and social video are among the most popular content marketing tactics in the United States, and the onset of the pandemic only fostered companies’ reliance on these tools. When asked about the share of media budgets devoted to select channels, U.S. industry experts stated that they allocated roughly 22 percent of their digital marketing spend towards digital video. This figure was higher than that devoted to paid search, highlighting video’s expanding presence in today’s complex marketing mix. Looking at how companies leverage the power of video, mobile stands out as a particular focal point. Not only are smartphones the top device to watch digital video content in the U.S., but videos on small handheld screens are also more engaging than written text.Channels that have become synonymous with free online video over the last decade are YouTube, Instagram, and TikTok, which boast massive user counts and promise great exposure. Free ad-supported streaming (FAST) services are also on the rise, accounting for almost one-fourth of digital video ad views in the U.S. in 2023. In addition to posting videos and engaging with millions of internet users themselves, companies also embrace user-generated video content and leverage the global phenomenon that is influencer marketing.
While companies can publish videos at practically no cost on social media platforms, websites, or other digital channels, they can also invest large sums into creating memorable video ad campaigns. In 2023, digital video ad spend in the U.S. amounted to around 77 billion U.S. dollars, and according to the latest projections, spending on video ads will surpass the 100-mark by 2027. Unsurprisingly, the lion’s share of this sum is expected to be allocated towards mobile, as consumers increasingly watch digital video content on their smartphones.
