Emarketer released a report, which revealed that in Canada, digital video surpasses TV in ad spending for the first time. Advertisers have steadily increased their investments in digital over the last decade. Back then, less than a quarter of ad expenditures were released in digital. But last year, digital reached that jeopardized traditional formats.
Digital video gained the most momentum of any format last year, growing by 10.0% year over year. This includes both in-stream video formats, such as YouTube ads, and those outstream on social media platforms. In 2021, digital video ad spending will grow by another 15.2% to CA$3.25 billion by $2.43 billion. Double-digit growth wis projected to continue for a few more years and by the end of 2024, the format will account for more than a third (34.0%) of digital advertising and about a fifth (20.2%) of all advertising.
Digital video’s growth derived mostly from the growth of social media ad units, as short, soundless, autoplay ad formats have gained significant traction in user feeds. Outstream video on social platforms is proving to be an effective alternative to TV for branding efforts. While digital provides all the tools to prevent over frequency, OTT buying methods across dozens of aggregators can lead to double spotting.
Video ads are mostly viewed on mobile devices, mainly due to the heavy consumption of social media on mobile. Mobile video ads will account for 84.5% of digital video ad spending this year. In 2020, mobile video ad spending rose by 8.5% YoY and will grow by 17.0% in 2021.