Despite the economic downturn brought on by the coronavirus pandemic, we estimate that US spending on digital video advertising still has the potential to increase by as much as 7.8% during H1 2020—or decrease by as much as 5.2% vs. H1 2019.
Even if digital video growth increases modestly, that’s about $3 billion to $5 billion less than we expected. Our previous US digital ad spending forecast completed on March 6, 2020, called for a 26.2% increase in digital video ad spending for the full year.
"Ads are bought in real time, and budgets can easily be pulled," said eMarketer principal analyst Nicole Perrin. "Also, consumers are spending more time with digital media, including media supported by video ads. But the increasing inventories come alongside a drop in advertiser demand, leading to falling prices."
"However, video is more insulated than other formats because it has long been in greater demand," Perrin said. "Falling prices due to reduced overall demand will make video placements even more attractive compared with static banner ads. The qualities that make video stand out to advertisers—sound and motion—are especially appealing for branding-oriented efforts, which many companies are now focused on."