Digital Marketing Snapshot 2022 Q3

Advertisers grow ad spending in Q3 to find customers in a challenging economy

Performance marketing channels respond to shifting customer demand by increasing ad volume at lower prices
WHAT YOU NEED TO KNOW
Spending growth in Q3 was broadly similar to last quarter despite economic headwinds, as algorithms adjusted to external conditions
Ad prices declined across all channels, while the volume of ad impressions and clicks increased, reflecting market conditions and changes to ad inventory
Lower CPC for search shopping campaigns and retail media ads balanced lower conversion rate (CVR) and average order size (AOS) to maintain or improve return on ad spend (ROAS)
Spending and ad prices for commerce post types and campaign objectives both jumped in Q3, showing a key difference between direct response and brand marketers in the social channel
GROWTH TRENDS CONTINUE IN Q3
Spending growth in Q3 was broadly similar to last quarter despite economic headwinds, as algorithms adjusted to external conditions
MORE ADS AT LOWER PRICES
Ad prices declined across all channels, while the volume of ad impressions and clicks increased, reflecting market conditions and changes to ad inventory
AD PRICES ADAPT TO CONSUMER DEMAND
Lower CPC for search shopping campaigns and retail media ads balanced lower conversion rate (CVR) and average order size (AOS) to maintain or improve return on ad spend (ROAS)
SOCIAL COMMERCE FLEX
Spending and ad prices for commerce post types and campaign objectives both jumped in Q3, showing a key difference between direct response and brand marketers in the social channel
FOCUS ON COMMERCE

COMMERCE SPENDING GROWTH

Retail media and social showed robust investment growth across commerce segments, while declining ad prices led to lower spend for search shopping campaigns that was then offset by keyword spend at the account level

SHOPPING AD SHARE

With lower ad prices for shopping ads in search, and higher ad prices for social, the share of total commerce spend from these ads diverged in Q3
CORE TRENDS