Ad spend on short-form videos to grow by CAGR of $145bn+ by 2028

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Ad spend on short-form videos to grow by CAGR of $145bn+ by 2028 Duncan is an award-winning editor with more than 20 years experience in journalism. Having launched his tech journalism career as editor of Arabian Computer News in Dubai, he has since edited an array of tech and digital marketing publications, including Computer Business Review, TechWeekEurope, Figaro Digital, Digit and Marketing Gazette.

The rise of short-form videos, first popularised by TikTok and then copied in the form of YouTube Shorts and Instagram Reels, has been a game-changer in the social media landscape.

These no more than 60-second long videos are not only entertaining and highly addictive content but also a fantastic way to reach younger audiences. That is why marketers continue pouring money into this type of advertising.

According to data presented by, global ad spending on short-form video is expected to continue growing by a CAGR of 50% and hit more than $145bn by 2028.

Spending on Short-Form Video Ads to Grow by An Average of $11B Per Year

As a powerful tool to generate leads, increase brand awareness, and drive user engagement, short-form video has become a dominant force in the digital landscape. Its dynamic format, engaging content, and ability to reach audiences across different social media platforms have become a game changer for brands and companies worldwide, which spent billions of dollars on this type of advertising.

According to a Statista survey, global spending on short-form video ads has jumped twenty times in just five years, rising from $4.6bn in 2018 to over $88bn in 2023. This figure is expected to grow by 11% to $99.4bn this year, the highest value the market has ever seen. Still, that is nothing compared to ad spending projections in the following years.

According to a Statista forecast, global spending on short-form video ads will continue growing by an average of $11bn per year and hit $145.8bn in 2028, showing a massive 65% increase in five years. The average spending per user will also significantly increase, rising from $16.5 in 2023 to $23.6 in 2028.

With brands and companies spending billions of dollars on the format, short-form videos are expected to make up 60% of total spending on digital video advertising in 2028, up from 52% this year.

Americas to Become the World`s Largest Short-Form Video Market by 2028

In global comparison, most short-form video advertising revenue comes from Asia. Last year, Asian brands and companies spent $38.8bn on this type of advertising, $1.8bn more than American companies and almost three times more than European brands.

However, Statista expects the Americas to become the world`s largest short-form video market in the following years. By 2028, the total ad spending in the region is expected to grow by 13% and hit $68.2bn.

The Asian market will see an 8% growth in this period, resulting in total ad spending of $57.9bn. Statistics show the European market will also see bigger growth than Asia, with total ad spending growing by almost 10% to $16.6bn in 2028.

Interested in hearing leading global brands discuss subjects like this in person? Find out more about Digital Marketing World Forum (#DMWF) Europe, London, North America, and Singapore.

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