Retail Media Spending Nearly Doubles on Black Friday 2024

Black Friday 2024 delivered $10.8 billion in online sales, up just 1% from last year. But the real story isn’t the steady sales — it’s how retail media advertisers ensured they captured those dollars.

With retail media ad spending nearly doubling year-over-year (92%) and conversion rates holding steady, advertisers effectively turned their increased budgets into proportionate sales growth. This proves that brands embracing retail media are gaining a competitive edge on peak shopping days by meeting consumers exactly where they make decisions.

The surge in retail media spending reflects how this channel has become a cornerstone of holiday advertising. Amazon alone saw ad spending spike 4.8X on Black Friday compared to the pre-Thanksgiving period (November 1-28), underscoring how today’s brands strategically leverage retail platforms to drive incremental growth. Despite higher CPCs, advertisers successfully maintained conversion value, showing that retail media continues to deliver returns even in a high-stakes environment.

This was also the Black Friday that cemented the increasing importance of social commerce. Ad spend on social media was up 35.1% from last year, the channel’s first double-digit growth during Cyber Week since 2019 — evidence of how social platforms (from Meta to TikTok) are capturing more and more commerce spend.

Finally, paid search also played a critical role in Black Friday’s success, with spending increasing 4X compared to early November. Commerce advertisers drove measurable results by using paid search to maintain visibility throughout the holiday period, complementing retail media’s spikes in performance.

Together, retail media, social, and search proved indispensable for brands looking to capture demand and convert shoppers during one of the biggest shopping days of the year. 

Let’s dive into the data to uncover the strategies and insights that defined Black Friday 2024.

Retail media ad spend surged

Retail media advertising solidified its position as the leading driver of holiday ad performance this year. Spending in this channel was up 92% year-over-year, with much of this growth fueled by increased CPCs, which rose 71%. Although clicks only grew 12% compared to Black Friday 2023, this highlights how retail media captured the most critical shopper moments with precision targeting.

By Black Friday, ad spending on Amazon surged to 4.8X the pre-Thanksgiving daily average, further emphasizing the role of retail media in influencing purchase decisions.

The average daily performance leading up to Thanksgiving saw a notable boost this year, likely influenced by the later timing of the holiday. With extended promotions and a condensed shopping window, many consumers took advantage of early deals before the big weekend.

Key Takeaway: Retail media’s nearly double year-over-year spending growth highlights its role as a must-have channel for advertisers capturing high-intent shoppers. The sharp rise in CPCs reflects fierce competition, but the steady click growth shows that the investment is paying off.

Conversion value held steady despite rising costs

Higher CPCs typically put pressure on ROAS, but retail media proved resilient. Conversion value remained stable year-over-year even as costs increased, showing how brands effectively used retail media to generate incremental sales.

This trend highlights the sophistication of retail media platforms, which allow advertisers to meet consumers directly at the point of purchase with tailored messaging.

Key Takeaway: Retail media continues to deliver strong conversion value, demonstrating that higher costs don’t necessarily mean lower efficiency when strategies are executed well.

Paid search shows strong growth with a Black Friday peak

Search spending started to pick up for commerce advertisers on or around November 17 before showing a larger spike on Thanksgiving and then again on Black Friday, ending the period 4X higher than it started for that segment and 2.4X overall.

CPCs rose 48%, reflecting intense competition, but advertisers continued to invest as paid search proved its ability to drive traffic and conversions.

Key Takeaway: Paid search’s strong performance highlights its continued reliability for driving both traffic and conversions, with its steady ramp-up proving critical during the peak shopping season.

Commerce advertisers outperformed the overall paid search channel

On Black Friday, commerce advertisers spent more on paid search compared to the overall paid search channel. Spending in this segment increased 200% (or 3X) above the November daily average, significantly outpacing the 94% lift seen across all paid search advertisers. This strong performance highlights the focus on retail-specific strategies driving holiday sales.

CPC premiums were also higher for commerce advertisers, rising 48% compared to a 29% increase for the overall channel. These higher costs reflect intense competition for search traffic during the peak shopping period, particularly for commerce-related queries.

Key Takeaway: Commerce advertisers leaned heavily into paid search during Black Friday, with spending and CPC growth outpacing the overall channel. Their investment underscores the value of search as a performance channel during high-stakes shopping periods.

Industry breakdown: Retail Media

By category, typical gifting categories saw the biggest lift on Black Friday. Computers & Consumer Electronics once again led the way in terms of both spending and conversion value, while Food & Groceries saw the least impact.

Industry breakdown: Paid Search

On a category basis, the standouts for Black Friday are both similar and different from retail media. Several industry verticals could be considered gift categories, but in paid search, categories like Computers & Consumer Electronics can have non-commerce components that result in that category lagging behind the overall channel.

Conclusion: The combination of retail media and paid search drove 2024 Black Friday success

Black Friday 2024 wasn’t just about rising sales—it was about how brands used retail media and paid search to capture those dollars. The nearly 92% increase in retail media ad spend shows how advertisers are prioritizing targeted, shopper-specific strategies to influence buying decisions. Meanwhile, paid search provided a steady foundation, complementing retail media’s spikes in performance, while paid social demonstrated the exponentially growing interest in social commerce.

As the holiday shopping season progresses, these strategies will remain critical. The brands that can balance rising costs with data-driven execution will be the ones that win—not just on Black Friday, but throughout the rest of the year.

Note: Our analysis is based on spending from Skai clients only and should not be interpreted as a fully accurate representation of channel or individual publisher performance.