How Digital Video Advertising Will Dominate The Next Decade

Over the past few years, video advertising has exploded in popularity. From the second someone watches a video on their phone or computer to the moment they watch an ad on TV, video can capture attention and drive a response. Video advertising is viewed as more effective and efficient than traditional forms of advertising, like print and radio, because it delivers a message to the viewer in a convenient, time-sensitive, and engaging format.

Digital Video Advertising

Digital video advertising is one of the fastest-growing parts of the digital advertising industry. Video is now the most popular format for online viewing, and companies have been investing in digital video advertising to reach as many viewers as possible.

In today's digital world, video ads are everywhere. When you watch an ad on a video platform, you're watching a video ad. Over the past few years, digital video advertising has become a common sight in our day-to-day lives. We watch commercials on our TVs, phones, and even our computers. But what exactly is digital video advertising?

What is Digital Video Advertising?

It is the advertising delivered on video platforms like YouTube, Facebook, Instagram and TikTok. It's the same kind of advertising you're used to seeing on TV but delivered in a digital format. Digital video advertising is displayed on video platforms, viewed through a computer, tablet, phone, or TV. It's delivered through various channels, including video ads shown on the websites of video platforms, video ads shown on the video platforms themselves, and video ads shown on third-party platforms like publishers, CMSes, ad networks, and ad tech companies.

It is a form of digital advertising that consists of advertising units that are either video formats or video clips. Video formats are pre-roll, mid-roll and post-roll ads on videos on websites, apps, and other video platforms.

Here are some ways how digital advertising is going to dominate the future of advertising:-

Engagement rates are higher with video advertisements

Consumer research has shown that video advertising results in higher long-term engagement rates than non-video advertising. This is because it is more engaging than traditional advertising formats and more likely to capture viewers' attention.

According to Tubular Labs, the first two months of 2020 have seen an average of 60% higher clicks and 16% higher conversions for digital video ads than non-video ads.

Higher click-through rates

In terms of click-through rates, digital video advertising has a higher CTA (conversion) rate than non-video advertising. A study by TubeMogul found that video ads with a CTA had an average conversion rate of 16%. In contrast, non-video ads only had an average conversion rate of 12% when measured over one week. This higher CTA shows that video ads are more likely to result in a conversion, which is a positive for advertisers.

According to Google, the average CTR on digital video ads is 1.8%, higher than the average CTR of 1.3% for digital video ads on non-video platforms. When an ad is shown on a video platform, it has a higher chance of being clicked on than the same ad shown on a non-video platform. This higher click-through rate also results in higher conversion rates, which can be measured in sales, leads, and visits.

Increase in sale

Digital advertising is also expanding the market for online sales. As digital advertising increases, so too does the market for online sales. This is shown in the increased number of online sales being made on digital platforms, such as sales on e-commerce platforms and mobile apps. The increased CTA rates on digital video platforms have led to an increase in the number of conversions on these platforms, which has, in turn, led to an increase in the number of sales.

A study by TubeMogul found that the average CPA (cost per acquisition) for digital video ads on Facebook was $4.76, higher than the CPA of $4.21 for non-video ads. This shows that when digital video advertising is used, it results in higher sales. This higher sale can be measured in new sales, re-engagement of existing customers, and new customer acquisition.

Also, a study by the Association of National Advertisers found that the first two months of 2020 have seen an increase in the number of sales for digital video advertisers, with a CAGR (compound annual growth rate) of 16%. This is compared to the CAGR of 5% for non-video advertisers.

Digital Advertisement dominates the online content

Digital Advertisement is vastly dominant online. It accounts for nearly all online advertising today. If one were to look today, there are almost 20,000,000 digital ad impressions being made daily across the globe. This is an increase of nearly 200% since 2017 and growing even faster by the day.

The rise of digital advertising and marketing means that there's just more data to draw from and make more informed decisions. As more consumers interact with advertising, marketers will be able to use new data to create more personalized ads at a scale that can be delivered most efficiently, with the right message at the right time.

Advertising is still the primary force in the online world. In fact, digital advertising comprised 92% of all U.S. ad spending in 2019, and that dominance is expected to grow even more with time.


Digital advertising has existed for a long time now.  It's been incorporated into TV and film advertising, brand advertising, and general marketing strategy. However, digital transformation is happening at an amazing rate, and marketers must try to adapt as quickly as possible. It will continue to play a significant role in the advertising industry for the foreseeable future.

In a nutshell, digital advertising uses digital tools to serve ads to people on the Internet to generate revenue. It includes digital banner ads (often found in most websites' right-hand column), text links, display ads, videos, and emails. It also includes social media advertising and mobile advertising, also known as digital advertising.