The video ad tech market will grow from revenue of just under US$1.7 billion in 2018 to close to US$6 billion by 2023, according to ABI Research.
The research firm noted that, despite ongoing consolidation in the ad tech market, overall growth continues as digital ad spend increases and data is used more effectively.
It also said that updated standards like VAST 4.1 are adding “cohesion and interoperability”, even though adoption is expected to be relatively gradual.
“Mobile video often garners a significant amount of attention, particularly attention devoted to 5G, but connected TV viewing is growing at a faster rate and could reach parity in the coming years,” said Michael Inouye, Principal Analyst at ABI Research.
“Advertising, though, remains relatively siloed and as more ad spend moves to digital, the value in cross channel management and tracking will grow in kind – particularly when it includes traditional TV services, which remain the primary source of video viewing for a large number of households.”
“We’re hearing more and more that companies want to avoid the data lake and in turn are pushing to make the data actionable. Despite the attention devoted to privacy, the volume of data will continue to grow, particularly as elements of the IoT and 5G are added to the mix. Video will also reach new screens and be viewed in more places, all of which will increase the value for ad technologies.”