Why Digital Video Ad Spending Will Falter
"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."