Last week’s successful IPO from Emeryville, Calif.-based TubeMogul, provider of a digital video ad platform, shined the spotlight back on other players in the sector, including Redwood City, Calif.-based competitor YuMe.

Both companies are poised to benefit from major brands shifting more of their TV advertising spending to the digital video market.

While the video ad market today is worth about $5 billion — relatively tiny in comparison to $197 billion spent worldwide on TV ads — it’s estimated to be expanding at a compound annual growth rate (CAGR) of around 30 percent, driven by brands wanting to further extend their presence to where viewers are these days.

Old Habits are Fading

A recent survey of more than 1,000 adults conducted by YuMe indicated 87 percent of consumers (and 92 percent of millennials) use a connected device (the average US household owns 4.4, by the way) while watching TV.

More than 60 percent of the respondents said they view web videos on a tablet and 54 percent use a smartphone, while 44 percent (and greater than 50 percent for millennials) watch on a gaming console.

According to research presented by YuMe, a sample advertiser with a TV ad campaign of $5 million could increase the reach by 27 percent by shifting just 10 percent of the budget over to video ads targeted across various devices.

Another survey conducted by YuMe tested the impact of multi-screen exposure on video ad effectiveness. The roughly 700 adult respondents saw both brand recall and purchase consideration levels increase when ads were viewed across at least three screens. Ads viewed in the triple combination of an over-the-top device, tablet and smartphone saw recall go up 50 percent.

According to comScore, nearly 187 million people in the US in June watched online videos, with Google Sites (primarily YouTube) coming in at No. 1 (153.3 million unique viewers) and Facebook in second place (91.5 million viewers).

Who Leads the Pack?

When it comes to the top US online video ad properties, the BrightRoll platform in June served ads to nearly half of the total US population, followed by Specific Media at 40.8 percent and AOL at 36.7 percent, according to comScore. Rounding out the top five: LiveRail (now owned by Facebook) was at 35.6 percent and Google Sites at 34.4 percent. Smaller players TubeMogul and YuMe had a reach of 32.5 percent and 17.8 percent, respectively.