When People Pay Attention to Video Ads and Why

What cost has risen the most dramatically for U.S. businesses in the last 25 years? It’s not the cost of healthcare or taxes, or even executive compensation. It’s advertising, more precisely the cost of commanding consumer attention, which has seen a staggering seven- to nine-fold increase in real terms since 1990.

When demand outpaces supply, prices rise. Marketers’ demand for consumers’ attention has grown dramatically in recent years with the proliferation of new brands and products. The supply of attention, however, can only grow wit.....