Video Advertising’s Fastest-Growing Formats: Short-Form and Connected TV

The future of video advertising is clear: short-form videos and Connected TV are set to dominate. As the industry continues to evolve, these two formats are experiencing the fastest growth rates and are transforming how brands reach their audiences.

Popularized by platforms like TikTok and Instagram Reels, short-form videos are expected to grow at an impressive 12.54% compound annual growth rate (CAGR) between 2024 and 2028. With this rapid expansion, ad spending in short-form video is projected to reach US$62.2 billion by 2028. These bite-sized ads are proving incredibly effective, particularly with younger, mobile-first users who prefer fast, engaging content.

On the other hand, Connected TV advertising is also experiencing a boom, fueled by the massive shift toward streaming platforms. With households moving away from traditional cable, Connected TV combines the broad reach of television with the precision targeting of digital. Ad spending in this space is projected to grow at 12.23% CAGR, reaching US$36.1 billion by 2028. This growth represents a significant opportunity for advertisers looking to capture attention across streaming services and smart TVs.

As brands look for innovative ways to engage consumers, these two formats are leading the charge, ensuring that video advertising remains a powerful tool in the future.