In-app video ads to capture over 30% of total US mobile advertising spend in 2024

In-app video ads are poised to seize more than 30% of the total US mobile advertising spend for the first time in 2024, according to eMarketer

Back in 2020, video ads accounted for just over a quarter (26.7%) of in-app ad spending. Fast forward to 2024, and this figure is projected to surge to 36.8%, with further growth anticipated to reach 37.5% by 2025.

One of the key catalysts driving this upward trajectory is the prevalence of in-stream ads. With a vast majority of video streaming services, including popular platforms like Hulu and Netflix, primarily accessible through mobile apps, the demand for mobile video advertising is on an upward trajectory. As ad-supported over-the-top (OTT) platforms continue to gain traction, particularly on mobile devices, they contribute significantly to the burgeoning landscape of mobile video advertising.

Moreover, social media platforms are actively fueling the surge in video advertising. In 2024 alone, social platforms are expected to rake in a staggering $43.03 billion from native video ads, with a predominant focus on mobile platforms. Notably, TikTok‘s ad business is projected to experience a remarkable 31.0% year-over-year growth in 2024, predominantly fueled by video ad placements. Similarly, Instagram is also witnessing growth, albeit at a more moderate pace, but still on a sizable base.

Despite the undeniable growth of web video ads, the overall experience remains suboptimal compared to in-app placements. While outstream video ads continue to drive sales, the majority of video services steer users toward app-based experiences, further bolstering the case for in-app video advertising dominance.

Furthermore, the burgeoning video spending landscape is also buoyed by a shift in gaming ad dollars towards brand advertising. Although still a relatively small portion of the overall video ad spend, some brands are exploring opportunities for full-screen video advertising within gaming and other mobile apps. This evolving trend reflects a broader shift in the advertising paradigm, with brands increasingly recognizing the potential of immersive video experiences to engage audiences effectively.

With US mobile ad spending surpassing the $200 billion mark in 2024, accounting for over half (51.2%) of total media dollars spent in the US and nearly two-thirds (66.0%) of digital ad dollars, the dominance of in-app advertising is unmistakable. As the advertising landscape continues to evolve, the ascendancy of in-app video ads signifies a seismic shift in marketing strategies, with brands increasingly leveraging immersive video experiences to captivate mobile audiences.

Written by Sophie Blake


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