At the same time, CPM-based prices flattened out or dropped significantly across all five platforms. Instagram was the fastest growing, but had the biggest drop in CPM. Taylor believes this is because newer platforms such as Reel tend to be priced lower and attract more spending.
Similarly, spending on TikTok, a relatively new platform with a slew of new ad products, grew 11%, despite a 4% drop in CPMs.
Also read: TikTok connects brands with user-generated ads
Google’s paid search spend growth has been steady since the fourth quarter, up 11% last quarter from 10% last quarter, while cost-per-click (CPC) remained flat from last quarter’s decline. Cost-per-click for retail advertisers continues its strong pace from last year, when he increased 25%. This means profit squeeze for Google search advertisers, even though average order value is only up 1% of his.
Amazon slows down, Walmart grows
Spend growth on Amazon Sponsored Products slowed from 12% to 25% in the previous three quarters to 8% in Q2, while cost per click decreased by 2%. A 10% decrease in cost-per-click resulted in a 1% decrease in Amazon Sponsored Display spend.
Walmart grew faster, with a 39% increase in sponsored product spend, despite a 4% drop in cost per click. Retailers’ shift to second-price auction bidding last year continued to help boost spending, but CPC declines slowed year-on-year, with Walmart’s CPC actually up 41% in June, marking the anniversary of the transition to second-price auctions, Taylor said.
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