Today, Skai, the leading omnichannel advertising platform specializing in walled garden media, released its Q3 2024 Digital Marketing Quarterly Trends Report. This comprehensive analysis reveals the digital marketing trends that shaped the third quarter of 2024. Retail media, paid search, and paid social all showed positive topline growth, with each channel reacting uniquely to a moderation in ad price inflation.

1. Full-Funnel Growth Strategies:

   • Major walled garden publishers have enhanced customer engagement throughout their journey by leveraging new ad formats.
   • Amazon DSP campaigns saw a 63% increase in upper-funnel spending compared to last year.
   • Google's Performance Max contributed to a 49% year-over-year growth, while Meta's Advantage Shopping Campaigns+ experienced a remarkable 67% growth.

2. Ad Price Inflation Eases:

   • The average cost-per-click (CPC) for retail media rose just 2% YoY, a decline from the 11% increase in Q2.
   • Paid search CPC growth decreased from 9% to 5%, and the cost of social impressions shifted from +3% to -3% YoY.

3. Increased Spending Amidst Adjusted Ad Volumes:

   • Despite a decrease in upward pressure from ad prices, spending grew across all channels:
     • Retail media clicks increased significantly, resulting in a 28% boost in spending YoY.
     • Paid search investment saw a modest 3% growth, even as clicks dipped slightly.
     • Social media compensated for lower prices with a 5% increase in overall spending due to a surge in impressions.

4. Amazon's Prime Day Ad Spend Surpasses Black Friday:

   • The two-day Prime Day event in July attracted more advertising dollars than the entire Thanksgiving to Cyber Monday period last year, leading to a 38% YoY increase in July spending for Amazon and a 34% rise across the retail media channel.

Quotes from Skai

"It's no surprise that retail media spending remains the brightest spot in digital media, as performance continues to scale without hitting diminishing returns," stated 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 Q3 2024 Digital Marketing Quarterly Trends Report by Skai highlights the resilience and adaptability of digital marketing strategies amidst evolving market conditions. As brands prepare for the upcoming holiday season, understanding these trends will be crucial for maximizing advertising effectiveness.