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Whether this is due to an increase of competition, rising costs of competing or hitting a ceiling of volume, every business will face the challenge of seeing diminishing returns on a once high-performing channel for them.
I've come across this challenge many times, which has made me very focused on adopting new channels that have potential at an early stage to reap the rewards. We're currently at a point where video ads are reaching their peak; cost is still relatively low and engagement is high, but, like with most ad platforms, increased competition will drive up those prices and make it less and less viable for smaller companies (and larger ones) to invest in it.
Many companies doubled-down on growing a community within the platform, hopeful of using it as a new and growing acquisition channel, but things didn't exactly pan out that way.
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