> Think about it, almost everyone I know rarely clicks on ads or buys from ads anymore.

This is a typical tech echo chamber. There is a significant number of people who make direct purchases through ads.

> But if they can get good video generations models, they can control this ad space too without having human in the loop.

Looks like based on a misguided assumption. Format might have significant impacts on reach, but decision factor is trust on the reviewer. Video format itself does not guarantee a decent CTR/CVR. It's true that those ads company find this space lucrative, but they're smart enough to acknowledge this complexity.