Digital video programming will have the most advertising success when it can start to draw budgets away from cable TV programming, says Todd Gordon, EVP and US Director, Magna Global during an interview with Beet.TV at the AOL NewFront event.

Video is starting to lure a larger share of budgets, but the price is tracking at a premium in between prime-time ad cable prices. “There is some video that competes with primetime, but the ability of digital video to fully compete is dependent on its ability to compete on price with cable,” he explains. “It’s mostly at a premium to cable now, but to source dollars from prime is limited, but sourcing from cable and the diverse audience there is doable.” In general, the supply of ad inventory has risen since there are so many digital outlets now.

As more marketers book full-episode video, he expects more money to come from cable budgets.