Higher ad prices played a role in growth across retail media, paid search and paid social while higher ad volume also factored into retail media and paid social, according to Skai's latest Quarterly Trends Report.

Skai, a leading omnichannel advertising platform specializing in walled garden media, releases its Q1 2024 Digital Marketing Quarterly Trends Report, providing comprehensive analysis and interactive infographics on the defining trends of the quarter.

1. Stable Growth Amid Seasonal Shifts:

   • Topline growth numbers in retail media, paid search, and paid social remain consistent compared to the previous quarter.
   • Despite a sequential decline due to the end of holiday seasonality, spending exhibits year-over-year growth across all channels.

2. Retail Media's Resilience:

   • Ad prices in retail media rise by 15% year-over-year, matching a 24% increase in spending.
   • Despite higher CPC, attributed sales revenue sees no change in overall return on ad spend (ROAS), indicating sustained effectiveness.

3. Performance Max Campaigns:

   • Despite consistent adoption rates, spending on Performance Max campaigns triples year-over-year, driving a 6% increase in total search spending.
   • Transition from legacy shopping campaigns leads to fewer impressions and clicks but higher CPC.

4. Paid Social Evolution:

   • Year-over-year CPM increases for the first time since Q1 2022, alongside the lowest impression growth.
   • Spending growth of 17% overall and 8% for Meta reflects stabilization after the transition to Outcome-Driven Ad Experiences.

5. Insights from Chris Costello:

   • Senior Director of Marketing Research at Skai, Chris Costello, emphasizes sustained growth trends across digital channels.
   • Observes slight upticks in paid search spending due to Performance Max transformation and stabilization in Meta's ad inventory.

Methodology:

• Analysis drawn from a significant advertising spend population across various platforms and vertical industries.
• Data encompasses more than 3,000 advertiser and agency accounts across 40 verticals and 150 countries on the Skai™ platform.
• The methodology ensures robust insights, although not fully representative of the entire market.

Skai's Q1 2024 report offers valuable insights into digital marketing trends, highlighting resilience in retail media, the impact of Performance Max campaigns, and the evolving landscape of paid social, providing advertisers and agencies with actionable insights for strategic decision-making.