Full-Funnel Strategies Drive Growth Across Digital Channels: Report
Topline growth numbers in retail media, paid search, and paid social remain positive, with each digital channel responding differently to a moderation in ad price inflation.
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Skai, the omnichannel advertising platform specialising in walled garden media, published its Q3 2024 Digital Marketing Quarterly Trends Report.
This in-depth analysis highlights the digital marketing trends that defined the third quarter of 2024. Topline growth numbers in retail media, paid search, and paid social remain positive, with each channel responding differently to a moderation in ad price inflation.
Full-funnel approaches drive growth in all channels
Major walled garden publishers have ramped up efforts to engage customers throughout their journey, utilising new ad formats. These ad types have outpaced the overall growth of the publishers or channels. Amazon DSP campaigns, for example, 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 towards Performance Max, which delivers ads across a broader range of placements within its ecosystem, contributing to 49% YoY growth. Similarly, Meta’s Advantage Shopping Campaigns+ grew 67%.
Ad price inflation has slowed
After higher prices dominated trends in the first half of 2024, 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 continues to rise as ad volumes adjust
Despite less upward pressure from ad prices, spending across all channels grew. Retail media experienced a significant YoY increase in clicks YoY, driving a 28% boost in spending compared to the same quarter last year. Paid search saw a modest 3% growth in total investment, even as clicks declined slightly. Meanwhile social media more than offset lower prices with a surge in impressions, increasing overall spending by 5%.
Amazon ad spend for Prime Day surpasses Black Friday and the Cyber 5
The two-day Prime event in July attracted more advertiser dollars than the entire Thanksgiving to Cyber Monday period last year, on a same-advertiser basis. This fueled a 38% YoY increase in July spending for Amazon and a 34% rise across the entire retail media channel.
“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.”
