Commerce media also played a significant role in driving growth within paid search and paid social, with formats like Google’s Performance Max and Meta’s Advantage Shopping Campaigns+ gaining traction among advertisers.
Why it matters: Rising costs in digital advertising costs reflect a broader trend of higher prices across all major channels, posing challenges for marketers who must balance increasing ad expenses with maintaining effective campaign performance.
- The consistent growth in retail media, despite these cost pressures, highlights its importance as a core channel to drive conversions and revenues.
- The study highlights that the continued shift toward more sophisticated, data-driven offerings, like Performance Max and Advantage Shopping Campaigns+, is key to staying ahead.
Our take: While advertisers can still grow in the face of rising costs, the continued uptick in CPCs and CPMs suggests that marketers need to be more vigilant in their campaign management. Tools such as dayparting, audience targeting, and budget caps are likely to become even more critical as advertisers navigate these cost pressures.
- Considering the primary expectation from marketing according to CMOs is top-line revenue growth, it’s no surprise that marketers are investing in high-performance channels despite rising costs.
- The strong performance of commerce media within search and social channels emphasizes the need for brands to adapt quickly to new ad formats.
- It remains critical for marketers to balance increasing ad volume with improving ad content to maximize conversions and overall performance.