Video Ad Insertion Platform Market Trends

Growth Drivers

• Programmatic advertising and real-time bidding (RTB) expansion: The global spending on programmatic advertising is projected to cross USD 725.5 billion by 2026. The video ads, especially through real-time bidding (RTB), are expected to gain momentum during the forecast period. The U.S. and EU are pushing for clearer practices in programmatic systems, as shown in the FTC’s digital advertising guidelines and the EU’s Digital Markets Act (DMA). Magnite and PubMatic platforms are utilizing automated tools to verify supply chains and build trust with brands. The vendors are also investing in transparent bidding processes to gain advertiser trust and optimizing supply paths to enhance campaign efficiency.
   
• Growing need for cross-platform measurement and attribution: Businesses need clear, unified metrics to track advertising performance across mobile, desktop, connected TV (CTV), and social media platforms, which is likely to boost the sales of video ad insertion platforms. As the inconsistent measurement methods reduce return on investment (ROI), initiatives, including NIST’s Smart Data Interoperability Framework, are focused on standardizing data exchange across platforms. The leading companies, Google and Nielsen, have already introduced systems that track users across devices using reliable matching methods. The developed markets are leading this shift, with brands seeking detailed analytics to target high-value audiences effectively.

Challenges

• Unclear or fragmented pricing models: The unclear pricing models and multiple intermediaries involved in the dynamic ad insertion are estimated to hinder the market growth in the years ahead. For example, in Japan, new companies focusing on expanding their operations in programmatic business face platform fees upwards of 30.5%, squeezing margins. The study by the World Trade Organization discloses that nearly 42.2% of SMEs struggle to compete due to unclear margin structures. These unstable pricing standards are deterring new entrants and SMEs from expansion and complicating ROI calculations for governments seeking cost-efficient adtech procurement.
   
• Telecom infrastructure disparities: The lack of proper connectivity networks is poised to hamper the sales of video ad insertion platforms to some extent. The developing economies most often witness low 5G or broadband penetration, which directly restricts real-time ad insertion. The report by the World Trade Organization (WTO) states that South Korea, Sweden, and the U.S. have near-total 5G coverage, while sub-Saharan Africa lags below 25.5%. This also reduces platform reliability and campaign effectiveness. Small-scale enterprises often hesitate to expand their operation in developing markets owing to poor infrastructure and low ROI.