Short-form video ads to hit $145bn as brands splash out

Short-form videos might have been popularised by influencers on TikTok and then replicated on YouTube and Instagram but it seems marketers simply cannot get enough, with global ad spend expected to grow by a CAGR of 50% and hit more than $145bn by 2028.

That is according to a new report from Statistica, backed by OnlyAccounts.io, which reveals the medium will grow by more than $11bn a year as younger audiences lap up the 60-second spots like they are going out of fashion.

Now viewed as a powerful tool to generate leads, increase brand awareness, and drive user engagement, short-form video has become a dominant force in the digital landscape.

With a dynamic format, engaging content, and ability to reach audiences across different social media platforms have become a game changer for brands and companies worldwide.

According to a Statista survey, global spending on short-form video ads has jumped 20 times in just five years, rising from $4.6bn in 2018 to over $88bn in 2023. This figure is expected to grow by 11% to $99.4bn this year, the highest value the market has ever seen and rise by 65% within five years.

The average spending per user will also significantly increase, rising from $16.50 in 2023 to $23.60 in 2028.
With brands and companies spending billions of dollars on the format, short-form videos are expected to make up 60% of total spending on digital video advertising in 2028, up from 52% this year.

In global comparison, most short-form video advertising revenue comes from Asia. Last year, Asian brands and companies spent $38.8bn on this type of advertising, $1.8bn more than US companies and almost three times more than European brands.

However, Statista expects the Americas to become the world`s largest short-form video market in the following years. By 2028, the total ad spending in the region is expected to grow by 13% and hit $68.2bn.

The Asian market will see an 8% growth in this period, resulting in total ad spending of $57.9bn. Statistics show the European market will also see bigger growth than Asia, with total ad spending growing by almost 10% to $16.6bn in 2028.

Even so, four years is a long time in advertising. And, with generative AI currently spreading like wildfire, short-form video could soon be facing far more competition for those marketing dollars.