With major events canceled or postponed and cut advertising budgets, marketers are under immense pressure to find the most effective way to share brand messages. For many of them, that means an even greater reliance on video advertising, especially across digital and social platforms.

According to data presented by Finaria, ad spending in the video advertising segment jumped by almost 10% year-over-year to $33.2bn amid the COVID-19 pandemic. The rising trend is set to continue in 2021, with global video ad spending rising to $37.4bn.

Mobile Video Ads to hit $35bn Value by 2025, Desktop Video Ads to Plunge by 45%

The video advertising segment includes all ad formats within the web or app-based video players, such as native video advertising, video ads before, during, or after the streaming video, and text or image-based overlays that appear while watching a video.

In 2017, the ad spending in the video advertising segment amounted to $21.7bn, revealed the Statista survey. By the end of 2019, this figure jumped by more than 40% to $30.4bn.

Although thousands of companies cut down their marketing budgets in times of crisis, the video advertising segment continued growing in 2020. Statistics show ad spending jumped by $2.8bn in a year as marketers and agencies turned to video advertising amid the coronavirus lockdown.

The Statista survey indicates global video ad spending is expected to increase by another $4.2bn in 2021. This figure is forecast to jump by 21% in the next four years and hit $45.5bn.

As the largest market segment, ad spending in desktop video advertising is set to reach $19.4bn in 2021, a slight increase in a year. However, Statista data indicate desktop video ads are forecast to witness a sharp fall in spending, with figure plunging by 45% to $10.5bn in 2025.

On the other hand, ad spending in the mobile video advertising segment is expected to double in the next four years and jump from $17.9bn in 2021 to $35bn in 2025.

The United States and China to Generate Almost 60% of Video Ad Spending

With a market volume of $14.7bn in 2021 or 11.5% more than a year ago, the United States represents the world’s largest video advertising market. Statistics show mobile video ads account for 53% of that value, or $7.8bn. By 2025, the video ad spending in the United States is expected to rise to $17.6bn.

As the second-largest globally, ad spending in the Chinese video advertising industry is expected to jump by 13.6% to $7.5bn in 2020, 50% less than the leading United States. Japan follows with $2.5bn in video ad spending as of this year.

Statistics show that the United Kingdom and Germany, as the other two leading markets, are also expected to witness impressive growth this year, with their market volumes rising by 13% and 10% to $1.5bn and $1.2bn, respectively.

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