It was a breezy Monday morning in 2024 when Anna clicked on her favorite social media app. Scrolling through the feed, she noticed something: the videos seemed different. They were sharper, more engaging, and oddly personalized. Anna didn’t realize that she was part of a global shift, one where video advertising had evolved into an unstoppable force—dominating screens and capturing attention in ways that traditional ads never could.
This transformation is not a coincidence. The video advertising market is set to reach a staggering US$84.6 billion this year. And the projection doesn’t stop there. With an annual growth rate of 7.45%, this industry will hit a whopping US$112.8 billion by 2028. As connected devices grow, so do new opportunities to reach consumers across various platforms.
Mobile Advertising: The Unstoppable Growth Engine
Mobile video ads are no longer just an emerging trend—they have become the dominant force in advertising. In 2024, mobile will contribute significantly to ad spending, with projections indicating that US$89.7 billion of total video ad spending will be generated via mobile by 2028. For comparison, in-app advertising alone has grown considerably, reflecting how integral mobile platforms have become for advertisers and how deeply woven these ads are into the daily life of users.
These mobile ads are more targeted and personal, with algorithms optimizing content for the user’s screen size, habits, and preferences. This means the days of irrelevant and untimely advertisements are fading away. Now, brands can capture Anna’s attention with a custom-tailored ad for her favorite shoes just moments after she’s finished a video on style tips.
Connected TV: The New Ad Frontier
While mobile ads are rising, Connected TV is carving out its territory. Ad spending on Connected TV platforms—such as streaming services and smart TVs—will hit US$22.8 billion in 2024. By 2028, that figure is expected to surge to US$36.1 billion, with an annual growth rate of 12.23%. This increase comes as more households cut traditional cable in favor of streaming services.
The appeal for advertisers is clear: Connected TV offers the large-scale reach of television combined with the targeted digital precision. Imagine streaming your favorite show on a Friday evening and suddenly seeing a compelling, interactive ad for a new product you’ve been considering—except this time, you can instantly shop for it, right from your TV.
The continuous growth of this market makes Connected TV one of the most promising areas in digital advertising. As brands explore more engaging formats and increase their investment, expect a wave of innovation in this space.
Short-Form Videos: Big Impact in Small Packages
Another key driver of growth is short-form videos. Whether it’s a 10-second TikTok or a brief ad on Instagram Reels, brands have learned that short-form videos are one of the most effective ways to engage users quickly. In 2024, ad spending on short-form video is projected to reach US$38.8 billion, with an anticipated growth rate of 12.54%. By 2028, that number will grow to US$62.2 billion.
This format is precious for reaching younger audiences with shorter attention spans. A single, catchy clip can spark a trend or sell out a product in just minutes. It’s fast, impactful, and it’s everywhere.
Video Advertising Trends
When examining the future of video advertising, two formats stand out as the fastest-growing: short-form videos and Connected TV. Short-form video ads, often seen on platforms like TikTok and Instagram Reels, are projected to grow at an impressive 12.54% compound annual growth rate (CAGR) from 2024 to 2028, with spending expected to reach US$62.2 billion by 2028. Meanwhile, Connected TV advertising, which capitalizes on the growing trend of streaming services, is set to expand by 12.23% CAGR, reaching US$36.1 billion in the same period. These formats lead the charge as advertisers seek to capture increasingly fragmented and mobile-first audiences.
Maximizing Value Per User
Across all platforms, advertisers are pouring money into understanding and engaging consumers. In 2024, the average ad spend per internet user is expected to be US$267.3. With more data available, brands better understand what resonates with their audiences, ensuring every dollar of ad spend is used effectively.
This hyper-targeted approach is shifting the industry from casting a wide net to delivering more curated experiences for users like Anna. Whether through social media, in-app, or Connected TV, advertisers can reach consumers where they are, with the content they are most likely to engage with.
Looking Forward: A Bright Future for Video Ads
Anna’s experience is just a glimpse of what’s to come. As video advertising grows and evolves, it will shape how we consume content. The possibilities are endless, from shoppable ads that allow us to purchase products with a tap to interactive videos that let us choose our ad journey.
As the industry grows, one thing is clear: video advertising isn’t just the future of advertising—it’s the present. And for brands looking to capture attention in a world of shrinking attention spans, there’s no better time to invest in video.
This isn’t just a trend; it’s a transformation. And as 2028 approaches, with US$112.8 billion projected in spending, we’re just at the beginning of the video advertising revolution.
