Ad Expenditure Increases Across Channels As The Shopping Focus Fuels Retail Media And Social Media Growth
Martech Outlook | Tuesday, December 10, 2024
More brands attempting to reach a bigger set of shoppers when they are in-market drove retail media growth.
Fremont, CA: Skai is a prominent omnichannel marketing device that uniquely links data and media to enable informed decisions, high efficiencies, and optimal returns. Its collaborators include Google, Meta, Amazon Ads, TikTok, Snap, Walmart Connect, Instacart, Roundel, Criteo, CitrusAd, Pinterest, Microsoft, Apple Search Ads, and more. Skai has been trusted by a long list of brands, including Pepsico, Michaels, Reckitt, Daimler, LG, and Vodafone, for over 15 years.
Skai, an omnichannel platform for performance marketing, has released its Q2 2022 Digital Marketing Quarterly Trends Infographic, an in-depth analysis of the digital marketing trends that defined the previous quarter (Q2), with a complete report to come next week. Overall, spending climbed across all channels compared to the last quarter and year.
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Overall spending continues to rise.
Retail media growth surged 42 percent year on year (YoY) in Q2 as advertisers increased spending on Amazon and the ever-expanding field of other retail media networks. Paid social media spending increased by 15 percent in 2022, demonstrating a more controlled spending environment than the previous year, which was disturbed by tighter user privacy measures on Apple mobile devices. Paid search spending climbed by 11percentage year on year.
Shopping is a major factor across all channels.
More brands attempting to reach a bigger set of shoppers when they are in-market drove retail media growth. In addition, paid social expenditure increased in the third quarter due to investments in commerce-focused ad types and advertisers. Only in paid search did investment appear to follow the macroeconomic trend of shifting away from goods and toward services.
IDFA is causing social advertisers to adjust.
IOS 14.5 modified privacy constraints and data availability for both targeting and measurement in 2021, resulting in successive spending decreases from April to May to June. However, with many remedies and workarounds in place for all these disruptions this year, the monthly spending on sponsored social media will be more constant in 2022, opening the stage for growth to accelerate.
Responsive Search Ads currently account for the majority of search spending.
The transition of sponsored search from the Expanded Text Ad (ETA) style to the Responsive Search Ad (RSA) format has reached a tipping point, with RSA now accounting for 38percent of total Q2 spend, up from 23percent in the same quarter last year. Over the same period, ETA pays decreased from 40percent to 27percent of real spend, and measurement signals have helped maintain those spending levels, resulting in stronger growth for social media expenditure than many predicted."
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