Ad Spend Vs. Volume By Channel Tells Two Tales
Increasing ad prices became the most important issue for advertising during the second quarter of 2024 -- but by the time the third quarter rolled around costs declined somewhat.
Ad-price growth continued to trend downward across all channels in Q3, continuing the pattern from earlier this year -- resulting in headwinds for spending growth in search and social, where ad volumes did not offset the price changes enough to maintain previous growth levels.
Retail media and search cost-per-click (CPC) grew more slowly in the third quarter, compared with the previous two this year. Paid social CPMs dropped year-over-year (YoY) after two quarters of increases, according to Skai’s quarterly trends report based on the spending at the agency by clients.
Retail media saw a significant spike in clicks, while search saw little change in click volume and social media experienced a surge in impressions enough to keep spending growth positive at the channel level.
But price vs. volume wasn’t the only story, Skai data shows. New advertising formats emerged behind walled-garden publishers, and the data shows they have outpaced overall growth of publishers or channels.
This article sheds light on the imbalance between ad spend and volume across digital channels, highlighting a trend that conservative marketers should view with caution. While platforms like social media dominate ad spend, it's essential to recognize the potential pitfalls of over-reliance on Big Tech for campaign reach. Conservatives should focus on diversifying their ad strategies, directing resources toward alternative channels that safeguard free-market principles and reduce dependence on platforms with known biases. By investing in a broader range of outlets, we not only maximize engagement but also uphold a more competitive, balanced digital advertising ecosystem that aligns with conservative values of market choice and individual agency.
~Political Media