In 2024, in-app video ads will capture over 30% of total US mobile advertising spend for the first time. Driven by placements in social media, YouTube, and OTT apps, in-app video ad spending will increase 20.4% YoY in 2024 to reach $61.11 billion. It will account for over half (58%) of the $105.93 billion in US video ad revenues and nearly 90% of mobile video ad revenues.

• Video ad spending is a rapidly increasing part of in-app advertising. In 2020, just over a quarter (26.7%) of in-app ad spending went to video ads. That figure will reach 36.8% in 2024 and 37.5% in 2025.
• In-stream ads are a big driver. Most video streaming services, such as Hulu and Netflix, are very difficult to watch on the mobile web. As ad-supported OTT continues to grow, this will contribute to the rapid increase in mobile video advertising.
• Social platforms also continue to push video advertising. Social platforms will sell $43.03 billion in native video ads in 2024, with virtually all of it on mobile. TikTok’s ad business alone will grow 31.0% YoY in 2024—and it’s mostly video. Instagram also continues to grow on a larger base—but at a slower pace.
• Web video ads are also growing, but the experience is suboptimal. Outstream video ads continue to generate sales, but most video services funnel users into an app experience.
• Video spending is also being bolstered by some gaming ad dollars shifting to brand advertising. Although it remains a small part of the overall video ad spend, some brands have explored full-screen video advertising within games and other apps. “We traditionally looked at full-screen videos as purely rewarded, but in the same placement now we’re starting to see brand videos surfacing,” said Lashanne Phang, global business lead for mobile apps and native at PubMatic.

Read the full report, Mobile Advertising 2024.