Just-published Skai Study Reveals Ad Spend Trends
MULO (multi-location) brands have more advertising options than ever before. As the year ends, last-minute decision-making regarding which outlets will deliver the best results challenges valuable marketing budgets. Skai (an omnichannel ad platform specializing in walled garden media) just published its third quarter 2024 Digital Marketing Quarterly Trends Report. Street Fight is among the first media outlets to report on these findings!
The Report indicated that full-funnel approaches are most effective in driving growth. For example:
- Amazon DSP (demand-side platform) campaigns expanded its ad reach into the upper funnel, driving a 63% increase in spending for that segment compared to last year.
- Google continued its push toward Performance Max, which delivers ads across a broader
range of placements within its ecosystem, contributing to 49% YoY growth. - Meta’s Advantage Shopping Campaigns+ grew 67%.
The great news for marketers is that ad price inflation seems to have slowed down. The Report shows that the average cost-per-click (CPC) for retail media rose just 2% YoY, down from an 11% increase in Q2. Paid search CPC growth also slowed, dipping from +9% to +5%, while the cost of social impressions shifted from +3% YoY last quarter to -3% YoY this quarter.
Spending across all channels grew. Retail media spend was up 28% compared to the same quarter of 2023, but paid search only grew a modest 3%. Social media spending increased by 5%.
Prime Day in July attracted more advertiser dollars than the entire Thanksgiving to Cyber Monday period last year on a same-advertiser basis. A whopping 38% increase shows that consumers are drawn to price specials and advertisers are meeting them where they are.
“It’s no surprise that retail media spending remains the brightest spot in digital media, as
performance continues to scale without hitting diminishing returns,” said Chris Costello, Senior
Director of Marketing Research at Skai. “In this additive environment, brands can adapt to
pricing changes without sacrificing growth. Advertisers have their houses in order as we
approach the critical Q4 holiday season.”
The study was based on more than 3K advertiser and agency accounts across 150 countries and $8.6B in spending across Analysis is drawn from a population of approximately $8.6 billion in advertising spend across 40 verticals. The platforms studied are:Google, Microsoft,Baidu, Yahoo! Japan, Verizon Media, Amazon Ads, Walmart Connect, Instacart, Criteo, Kroger, Apple Search Ads, Pinterest, Snapchat, Facebook, and Instagram.
Skai works with major brands like HP, DoorDash, Sony, Philips, and L’Oreal.
For more insights into the future of ad spending and how brands and agencies are planning for the year ahead, please join us at Street Fight LIVE on November 7th!
