Rising digital media consumption and the growth of e-commerce are expected to propel the digital video advertising market's astounding 29.6% compound annual growth rate.

The digital video advertising industry is expected to increase at a compound annual growth rate (CAGR) of 29.6% from 2021 to 2031, from its 2021 valuation of $53.23 billion to $712.6 billion, according to a recent analysis released by Allied Industry Research.

Digital video advertising is the practice of showing advertisements either as standalone or as pre-, mid-, or post-roll advertisements inside online video content, often before, during, or after a video stream. Furthermore, most video advertisements are purchased, sold, and shown programmatically via a variety of targeting techniques, and they may also have interactive features.

The market for digital video advertising is also expanding as a result of rising digital media consumption and e-commerce sector acceptance. Additionally, the rise in internet and smartphone usage worldwide is having a favorable effect on the market expansion for digital video advertising. However, the high expenses of digital video advertising and the possibility of network security events are impeding the market's expansion. Conversely, it is anticipated that emerging developments in the digital advertising sector would present lucrative prospects for the growth of the digital video advertising industry.

The retail industry segment has the biggest market share for digital video advertising, according to industry vertical. This is because it enables marketers and brands to use cookies to identify and analyze search results, giving merchants a comprehensive grasp of consumers' requirements and desires. However, due to the growing popularity of social media platforms, which enable media companies to increase their content distribution by providing digital content licensing and production rights, the media and entertainment category is anticipated to grow at the fastest rate throughout the projected period.