The rise of short-form videos, first popularized by TikTok and then copied in the form of YouTube Shorts and Instagram Reels, has been a game-changer in the social media landscape. These no more than sixty second long videos are not only entertaining and highly addictive content but also a fantastic way to reach younger audiences. That is why marketers continue pouring money into this type of advertising. According to data presented by OnlyAccounts.io, global ad spending on short-form video is expected to continue growing by a CAGR of 50% and hit more than $145 billion by 2028.
Spending on Short-Form Video Ads to Grow by An Average of $11B Per Year
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. Its dynamic format, engaging content and ability to reach audiences across different social media platforms have become a game changer for brands and companies worldwide, which spent billions of dollars on this type of advertising.
According to a Statista survey, global spending on short-form video ads has jumped twenty times in just five years, rising from $4.6 billion in 2018 to over $88 billion in 2023. This figure is expected to grow by 11% to $99.4 billion this year, the highest value the market has ever seen. Still, that is nothing compared to ad spending projections in the following years.
According to a Statista forecast, global spending on short-form video ads will continue growing by an average of $11bn per year and hit $145.8bn in 2028, showing a massive 65% increase in five years. The average spending per user will also significantly increase, rising from $16.5 in 2023 to $23.6 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.
Americas to Become the World`s Largest Short-Form Video Market by 2028 In global comparison, most short-form video advertising revenue comes from Asia. Last year, Asian brands and companies spent $38.8 billion on this type of advertising, $1.8 billion more than American companies and almost three times more than European brands. However, Statista expects the Americas to become the world`s largest short-form video.