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Lack of Premium Inventory Inhibits Video Ad Spend

Both sell-side media companies and buy-side advertisers agree that lack of premium inventory hold back video’s growth, according to Forrester. While digital video is becoming an effective channel to engage with consumers, many brands, agencies and publishers are seeking alternatives due to limited premium video inventory.

The report, Solving Digital Video Advertising’s Premium Dilemma, was conducted by Forrester on behalf of video ad platform Teads. It shows that 40 percent of agencies and 27 percent of advertisers are worried that lack of premium video inventory will hurt the video market in the future, even though 70 percent of agencies and 77 percent of advertisers surveyed expect video budgets to jump in the next two years.

The same holds true for sell-side participants as well. Many media companies are struggling with limited video inventory, along with costs and focus, says the report. More than 40 percent of publishers say that video’s return on investment (ROI) is not as high as they would like due to high costs of producing video content to host an ad, while 37 percent admit that they don’t have enough video inventory.

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