In 2022, TikTok generated ************ U.S. dollars in advertising revenue. This figure is expected to double by 2024 and more nearly quadruple by 2026. TikTok marketers are digging into their pockets TikTok was the most downloaded mobile app worldwide in 2021, and the massive appeal of the short-form video platform has not gone unnoticed by advertisers. Over the last few years, more brands have started leveraging TikTok’s impressive reach and engagement figures to boost brand awareness and foster relationships with young, mostly Gen Z, customers. And even though the new kid on the block cannot yet match Facebook’s advertising revenues, it is becoming more appealing each year. As of 2021, TikTok’s revenue in the U.S. amounted to *********** U.S. dollars, which translated to roughly *** percent of total digital ad spending in the country. This share is expected to increase steadily over the next few years. Brands on TikTok Advertising on TikTok can open many doors for companies, especially those wanting to reach young (and previously hard to target) audiences. Videos posted on the app can go viral overnight and reach millions of online users, which is something that other social media apps are unable to deliver. In 2021, Netflix was the most talked about brand on TikTok, with more than ************ influencers mentioning it. In addition to posting videos and teasers for their upcoming releases, the streaming giant frequently partners with creators and launches challenges on the app.

In 2021, TikTok generated **** billion U.S. dollars in advertising revenue worldwide. For 2022, the Chinese social media platform is projected to more than triple this result, with **** billion U.S. dollars. In 2024, TikTok is projected to reach close to **** billion in ad revenue on a global scale.

In 2020, TikTok advertising spending of the global clothing and accessories industry stood at ** million U.S. dollars. The source expects the expenditure to increase to **** billion U.S. dollars by the end of 2023. For the retail industry, the spending is projected to increase from ** million to **** billion in the same time period.

In 2021, TikTok accounted for *** percent of the global digital advertising revenue. In 2022, the share was expected to increase to *** percent and keep on increasing for the next two years. In 2024, the value was projected to rise to *** percent.

In 2023, TikTok's net advertising spending increased by ** percent. A year earlier, the growth rate stood at *** percent. The platform's ad revenue was estimated at ** billion U.S. dollars in 2023.

TikTok's advertising revenue per TikTok user in the United States was projected to amount to **** U.S. dollars in 2022, marking a ***** percent increase from the previous year. This value was expected to further increase over the next two years, before reaching a projected ****** dollars in 2024.

In 2024, the advertising revenue of social video platform TikTok in the United States was estimated to be of approximately nine billion U.S. dollars. Instagram, which positions itself as a video-first platform, was estimated to have generated 30 billion U.S. dollars in advertising revenues in 2024. In comparison, Snapchat saw no estimated growth in ad revenue from 2021, maintaining its projected revenues of two billion U.S. dollars in 2024.

It has been forecast that Google (including YouTube) would generate 7.8 billion euros in advertising revenue in Germany in 2025. Chinese short-video platform TikTok could count on half a billion euros of digital ad revenues. According to the same source, the four platforms would account for roughly a half of total (digital and traditional) advertising revenues generated in Germany in 2025.

According to recent industry measurements, users in Brazil generated more than 5.6 million downloads of the video-sharing platform TikTok during June 2023. Indonesia ranked second, with almost five million downloads generated during the examined period. TikTok, which is the international version of the Chinese app Douyin, experienced spectacular growth in popularity in recent years.

TikTok: global popularity TikTok, which reached the milestone of one billion active users at the end of September 2021, still ranks among the most popular social media platforms worldwide as of January 2023. In 2022, TikTok users worldwide spent an impressive average of approximately 23.3 hours per month on the platform, highlighting the app's popularity and high engagement. In 2023, TikTok's global popularity in social media is still on the rise, with a worldwide penetration rate of 19.4 percent.

TikTok: revenue growth The social video app, which generates revenues via advertising and in-app purchases from users, saw in-app revenues of almost 500 million U.S. dollars worldwide in the first quarter of 2023. The global net advertising revenue generated by TikTok is expected to reach 18.5 billion U.S. dollars by the end of 2024. Additionally, the net advertising revenue of TikTok in the United States is expected to further increase, reaching an estimated 11 billion U.S. dollars in 2024.

TikTok's advertising revenue per TikTok user in the United States was projected to increase by ***** percent in 2022 compared to the previous year, when it had enjoyed an increase of ***** percent. This value was expected to further grow by **** percent in 2023.

Advertising revenue generated by TikTok was expected to increase by 55 percent in 2023. That would make it the fastest-growing social media platform among the seven market leaders presented in the data set. As of August 2023, X's (Twitter's) ad revenue was expected to shrink by 30 percent in that calendar year.

In 2023, TikTok was projected to generate an estimated *********** U.S. dollars in revenue in the United States. The video platform’s revenue is set to increase to ** billion U.S. dollars in 2025. In addition to advertising, TikTok is also expecting to generate money from TikTok Shop e-commerce.

Online advertising revenue in the United States grew by 15 percent in 2024 compared to 2023, from 225 billion to 259 billion U.S. dollars. The figure first surpassed 100 billion dollars in 2018 and 200 billion in 2022, owing to the emergence of new channels and formats including digital audio (podcasts and streaming) and digital video (streaming and CTV) as well as strong growth from retail media. Online advertising at a glance Search is the dominating internet advertising format in the United States, accounting for 40 percent of the country's digital advertising revenue. Display follows, accounting for 29 percent of ad revenue, while 24 percent is attributed to digital video ads. However, it is spending on two specific types of platforms that is booming. Social media, with Instagram and TikTok, and retail media, with Amazon and Walmart, harvest the fruit of winning users’ attention. Consumer attitudes to online ads Consumers most often come across online ads on social media and in video content (both on streaming services such as Netflix or Amazon Prime and on video portals, such as YouTube). However, they believe that they were most receptive to ads while shopping online and consuming news content. What internet users did not appreciate at all, were ads based on their browsing history and on their social media behavior, which they considered the most invasive.

In 2024, social video platform Instagram had the highest advertising revenue per user in the United States, with an estimated 16.74 U.S. dollars in estimated monthly revenues. Instagram's ad revenue per user was projected to experience a growth of nine percent by 2026, surpassing 20 U.S. dollars per user. In comparison, Snapchat was estimated to have ad revenue of less than two dollars per user. TikTok, which is still subjected to a possible ban by January 2025 in the United States, was projected to have ad revenues of almost eight U.S. dollars per user in 2024.

In 2021, TikTok accounted for *** percent of digital adverting spending in the United States. By 2024, the share is expected to increase to *** percent. TikTok is also projected to be the second largest influencer marketing platform in the U.S. by that time.

In 2024, global advertising spending will reach an estimated 917 billion U.S. dollars, up from 845 billion dollars a year earlier. That represents a year-over-year (YoY) growth of approximately 8.5 percent. The annual value was projected to continue to expand, surpassing 1.17 trillion dollars by 2028. World's top advertising channels According to another source's forecasts, the internet alone attracted seven out of 10 ad dollars worldwide in 2024, solidifying digital channels' relevance for the industry. The rest of the top three global ad media included TV and outdoor displays, which collectively accounted for little more than 20 percent of the market. However, the out-of-home (OOH) segment was expected to be the world's fastest-growing ad medium that year, and the only one with a double-digit increase rate. Leading countries and media companies In 2023, Alphabet concentrated around one-quarter of global ad revenues. Meta, Amazon, Alibaba, and TikTok followed , revealing that five big techs held most of the world's ad revenues. Meanwhile, the United States came in first on the ranking of economies by ad spending in 2024. It stood far ahead of the second place, China, and both left the United Kingdom and Japan nearly tied for the third place.

In 2021, global social media advertising spending stood at around *** billion U.S. dollars. The source projected that this figure would more than double and exceed an all-time high of *** billion by 2028. Where to advertise in a sea of social media platforms? While there are many regional differences when it comes to social media usage and accessibility, some platforms reign supreme among users and advertisers alike. As of 2022, Facebook, YouTube, and Instagram were the most popular social networks worldwide. Thanks to their massive audiences, these Meta-owned properties also ranked among the leading social media platforms for marketers. What makes advertising via these channels so appealing is not only the prospect of boosting brand awareness and generating leads but also the possibility to strengthen brands’ relationships with consumers via direct communication. Spotlight on influencer marketing In addition to posting photos and videos on their social media accounts and interacting with followers, companies can also enlist the help of content creators to drive visibility and potentially unlock new audiences. Over the past few years, the global influencer marketing market value has expanded rapidly and is now sized at an estimated **** billion U.S. dollars. Instagram remains the primary playground for this creator-driven form of online marketing, though apps like TikTok are also becoming more appealing to brands from around the world.

According to Cognitive Market Research, the Global Digital Video Advertising market size was USD 55.81 Billion in 2022 and it is forecasted to reach USD 424.96 Billion by 2030. Digital Video Advertising Industry's Compound Annual Growth Rate will be 29.1 % from 2023 to 2030. Market Dynamics of the Digital Video Advertising Market

Key Drivers of the Digital Video Advertising Market

Rising Adoption of Social Media Platforms to Boost Market Growth 

The rising adoption of social media platforms is significantly boosting the growth of the digital video advertising market. Since more consumers are engaging with platforms like Facebook, Instagram, YouTube, TikTok, and others, brands are increasingly leveraging these channels to reach their target audiences with video content. Social media platforms offer advanced targeting capabilities, allowing advertisers to tailor their messages based on demographics, interests, and behavior. This hyper-targeting, combined with the immense reach of these platforms, makes social media a powerful tool for video advertising, driving higher engagement and increasing the overall effectiveness of digital video ad campaigns, thus fueling market expansion.

Key Restraints of the Digital Video Advertising Market

Rising Use of Ad Blockers to Hamper Market Growth

The rising use of ad blockers presents a significant restraint to the growth of the digital video advertising market. As more consumers adopt ad-blocking software to avoid intrusive or irrelevant ads, advertisers face challenges in reaching their target audiences effectively. This trend reduces the visibility of video ads, especially on websites and platforms where users are increasingly bypassing traditional ad formats. Consequently, advertisers may see diminished returns on their investments, as fewer viewers are exposed to their content. This growing resistance to online ads may force marketers to seek alternative, non-intrusive methods, impacting the overall market growth.

Key Trends of the Digital Video Advertising Market

Computerized Advertising to Create Opportunities in the Market 

The rise of computerized advertising presents significant opportunities for growth in the digital video advertising market. Advancements in artificial intelligence (AI), machine learning, and data analytics enable advertisers to optimize video ad targeting, personalization, and delivery in real-time. AI-powered algorithms can analyze consumer behavior and preferences, allowing for more precise ad placements across various digital platforms. Additionally, automation tools streamline campaign management, improving efficiency and reducing costs. As brands increasingly adopt computerized advertising solutions, they can deliver more relevant, engaging video content to consumers, enhancing user experience and driving higher conversion rates, thereby expanding market potential. Introduction of the Digital Video Advertising Market

The Digital Video Advertising market refers to the segment of online advertising that involves delivering promotional video content through digital channels such as websites, social media, mobile apps, and streaming platforms. It includes formats like in-stream ads, out-stream ads, bumper ads, and interactive videos, designed to engage users with dynamic, visual storytelling. This market is driven by the increasing consumption of online video content, advancements in ad targeting technologies, and the shift from traditional TV advertising to digital platforms. Digital video advertising allows brands to reach specific audiences more effectively, track engagement metrics in real-time, and enhance overall campaign performance.

Internet Ad Spending Market Outlook

As of 2023, the global internet ad spending market size is estimated to be valued at approximately USD 500 billion and is projected to reach about USD 1.2 trillion by 2032, growing at a compound annual growth rate (CAGR) of 10.5%. This robust growth is driven by increasing internet penetration, the rise of social media platforms, and the digital transformation of businesses worldwide, which have collectively fueled the demand for internet advertising.

One of the primary growth factors in the internet ad spending market is the rapid adoption of mobile devices. With over 5 billion mobile users globally, businesses are increasingly shifting their ad budgets towards mobile platforms to reach a wider audience. Mobile advertising, including in-app ads and mobile web ads, has shown significant growth, driven by the ubiquity of smartphones and the high engagement levels of users on mobile apps and social media platforms. Additionally, advancements in mobile technology, such as 5G, are expected to further enhance mobile ad experiences, thereby driving ad spending.

Another significant factor contributing to the growth of the internet ad spending market is the evolution of social media advertising. Social media platforms like Facebook, Instagram, Twitter, and LinkedIn have become essential channels for businesses to connect with their target audiences. These platforms offer sophisticated targeting options, enabling advertisers to deliver personalized and relevant ads to users based on their interests, behavior, and demographics. The increasing time spent on social media by users has made it an attractive option for advertisers, leading to a continuous rise in social media ad spending.

The growing importance of video advertising is also a major driver of the internet ad spending market. Video ads are highly engaging and have higher retention rates compared to other ad formats. Platforms like YouTube, TikTok, and various streaming services have seen a surge in video content consumption, prompting advertisers to allocate more budget towards video ads. The integration of video ads in social media feeds and the rise of short-form video content have further boosted the appeal of video advertising. Innovations in video technology, such as interactive and shoppable video ads, are expected to propel market growth.

Interactive Advertising has emerged as a pivotal component in the digital marketing landscape, offering brands the ability to engage consumers in more meaningful and dynamic ways. Unlike traditional static ads, interactive ads invite users to participate, whether through clicking, swiping, or engaging with content in real-time. This form of advertising not only captures attention but also enhances user experience by providing personalized and immersive interactions. As brands seek to differentiate themselves in a crowded digital space, the use of interactive elements in advertising campaigns is becoming increasingly prevalent. The ability to gather real-time feedback and insights from consumers further empowers advertisers to refine their strategies and improve campaign effectiveness.

Regionally, North America holds a substantial share of the internet ad spending market, driven by the high digital ad spend in the United States and Canada. The presence of major tech companies and a mature digital ecosystem contribute to the region's dominance. However, significant growth is also expected in the Asia Pacific region, where increasing internet penetration, the proliferation of mobile devices, and the rapid digitalization of economies like China and India are key factors. Europe, Latin America, and the Middle East & Africa are also witnessing steady growth, supported by rising digital ad investments and expanding online consumer bases.

Ad Format Analysis

The ad format segment of the internet ad spending market is diverse, encompassing search ads, display ads, social media ads, video ads, classifieds, and others. Search ads remain a cornerstone of internet advertising, driven by the prominence of search engines like Google and Bing. Businesses invest significantly in search ads to capture users' intent-driven searches, which often result in higher conversion rates. The efficiency and measurability of search ads make them a preferred choice for many advertisers looking to optimize their marketing efforts.

Display ads, which include banner ads, rich media ads, and

The short-form video market is experiencing explosive growth, driven by the increasing popularity of platforms like TikTok, Instagram Reels, and YouTube Shorts. This segment is particularly vibrant among younger demographics (13-30 years old), with engagement rates significantly higher than longer-form video content. The market's success is fueled by several factors: readily accessible creation tools, easily digestible content formats catering to shorter attention spans, and the virality inherent in shareable, easily consumable videos. The market is highly segmented by both video length and target audience. While shorter videos (under 30 seconds) currently dominate, longer short-form content (1-5 minutes) is gaining traction, reflecting evolving consumer preferences and platform algorithm adaptations. Geographic distribution shows strong concentration in North America and Asia-Pacific, with regions like China and India exhibiting particularly robust growth due to their large and increasingly internet-savvy populations. The competitive landscape is fiercely competitive, with established tech giants like Facebook, YouTube, and ByteDance vying for market share alongside emerging players. This competition drives innovation, leading to constant improvements in video editing tools, recommendation algorithms, and monetization strategies. While challenges exist—including concerns around content moderation, creator compensation, and potential audience fatigue—the market's dynamism and expansive reach strongly suggest continued upward trajectory throughout the forecast period. The future of short-form video hinges on several key developments. Expect to see continued platform innovation in areas like augmented reality (AR) and virtual reality (VR) integration, further enhancing user engagement and creative possibilities. Monetization strategies will also evolve, potentially moving beyond advertising towards diversified revenue models like subscriptions, brand partnerships, and direct-to-fan support. The emphasis on personalized content recommendations will intensify, improving user experience while simultaneously tailoring ads more effectively. Growth in emerging markets will continue to be a pivotal factor, as increased internet penetration and smartphone adoption drive adoption. The ongoing battle for user attention between short-form and long-form video will reshape the entire video landscape, leading to potential hybrid formats and further niche specialization.