Michele Majidi
Researcher
Digital video advertising and marketing in the U.S. - statistics & facts
As YouTube turns 20 in 2025, digital video at a mass scale is also easing into a new maturity. Few other formats can capture and retain audiences' attention as effectively, and the number of digital video-on-demand (VOD) viewers in the United States and many other parts of the world keeps growing every year. With streaming platforms incorporating ads and user attention remaining high on sites like TikTok and YouTube, advertisers are dividing their video budgets between social, streaming, and online video.
Channels that have become synonymous with free online video over the last decade included YouTube, Instagram, and TikTok, which boast massive user counts and promise great exposure. Free ad-supported streaming (FAST) services are also on the rise, accounting for an estimated 6.1 billion dollars in ad revenue in 2025. In addition to posting videos and engaging with millions of internet users themselves, companies also embrace user-generated video content and leverage the global phenomenon that is influencer marketing.
While companies can publish videos at practically no cost on social media platforms, websites, or other digital channels, they can also invest large sums into creating memorable campaigns. In 2025, digital video ad spend in the U.S. was forecast to add up to around 92 billion U.S. dollars, and according to the latest projections, spending on video ads will surpass the 100-billion mark by 2027. Unsurprisingly, the lion’s share of this sum is expected to be allocated towards mobile, as consumers increasingly watch digital video content on their smartphones.
Video is moving up the digital ranks
Connected TV (CTV) and social video are among the most popular video marketing tactics in the U.S. and the first half of the 2020s consolidated companies’ reliance on these tools. When asked about the share of media budgets devoted to select channels, U.S. industry experts stated that they intended to allocate roughly 22 percent of their digital marketing spend towards digital video in 2024. This figure was higher than that devoted to paid search, highlighting video’s expanding presence in today’s complex marketing mix. Video streaming advertising areas that made U.S. marketers particularly excited were improved targeting and personalization, as well as better cross-platform measurement.Channels that have become synonymous with free online video over the last decade included YouTube, Instagram, and TikTok, which boast massive user counts and promise great exposure. Free ad-supported streaming (FAST) services are also on the rise, accounting for an estimated 6.1 billion dollars in ad revenue in 2025. In addition to posting videos and engaging with millions of internet users themselves, companies also embrace user-generated video content and leverage the global phenomenon that is influencer marketing.
While companies can publish videos at practically no cost on social media platforms, websites, or other digital channels, they can also invest large sums into creating memorable campaigns. In 2025, digital video ad spend in the U.S. was forecast to add up to around 92 billion U.S. dollars, and according to the latest projections, spending on video ads will surpass the 100-billion mark by 2027. Unsurprisingly, the lion’s share of this sum is expected to be allocated towards mobile, as consumers increasingly watch digital video content on their smartphones.
