One of the great – and completely misguided – tropes of the digital age is that “digital ad inventory is infinite.” The thinking goes that ad inventory in more traditional media is limited by physical space (print) or time (TV and radio), and that this scarcity supports ad values. The Internet, in contrast, has vast and undefined borders – and thus the supply of ad inventory is “infinite.” Infinite supply means that value of digital advertising eventually gets driven to zero, or close to it.
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