Why I Started Paying Attention to Video Advertising

A few years ago, I hardly paid any attention to video advertising, aside from the usual YouTube ads. But as I began managing advertising campaigns for clients in the U.S., I started hearing from colleagues about how well video ads were performing in certain niches.

This made me wonder: am I missing out on an important opportunity? I decided to dive in and test video ads across a few campaigns myself. The results were surprising — in some cases, video advertising outperformed traditional PPC (pay-per-click) formats. In this post, I want to share some numbers from public sources and my observations on why video advertising deserves your attention.

Market Overview and Growth Trends

According to public sources, local ad revenue in the U.S. is projected to grow by 9.3% from 2023 to 2024, reaching $172 billion. Traditional media revenue in 2024 is expected to be around $88 billion, while digital media is forecasted to bring in $84 billion. This indicates that digital advertising is almost catching up with traditional advertising.

Interestingly, the growth rate for local video advertising is expected to slow down from 2024 through 2027, with a -1.5% CAGR (compound annual growth rate). However, if we exclude political spending, the growth rate is projected to be a healthy +4.7% CAGR. This suggests that video advertising will continue to grow steadily in non-political years. Overall, the U.S. local advertising market is expected to grow at a +1.8% CAGR from 2024 to 2027.

Another important trend is the significant increase in digital revenue for local video advertising by 2027, which is expected to narrow the gap with traditional advertising. Political advertising is also anticipated to drive growth for local TV platforms in even-numbered years.

My Observations and Results

Over the past few years, I’ve tested different video ad formats across various industries, including retail, services, and technology. In several cases, video ads showed a higher conversion rate compared to traditional PPC formats. This is largely because video allows for a more emotional and interactive connection with the audience, creating a deeper bond with the brand.

Video advertising is especially effective when you need to tell a story or demonstrate a product in action. For instance, a campaign I ran for a client specializing in kitchen appliances saw a significant boost in sales after launching a series of video ads showcasing their products in use.

I see video advertising is becoming an increasingly powerful tool for local businesses, and I genuinely believe it deserves more attention. If you have any questions or need help choosing a platform for your campaigns, feel free to reach out — I’d be happy to share some great tips and insights.