Ad spend increased across Google, Meta, Amazon and Walmart during the first two quarters of 2023.
Another major advertising platform on the grow in Q2: fashion brand Temu.
The company became a major player in the Google Shopping race, so much so that it is now competing against 82% of US advertisers – to put this percentage into perspective, this is a higher share than Walmart, according to Tinuiti’s latest Digital Ads Benchmark Report.
Why we care. An increase in ad spend is fantastic news for marketers as it shows that stability and trust in the digital ad space is finally returning following the economic downturn. The more brands are willing to spend, the more opportunities that are created for advertisers – not just in terms of campaign volume, but bigger budgets will give advertisers access to more resources to improve engagement, conversions and ROI.
The business’ strong performance will also be of interest to marketers previously thinking of buying ad space with Walmart, as Temu may now be considered a serious alternative.
What has Tinuiti said? Andy Taylor, vice president of research at Tinuiti, suggested Temu’s success was unexpected:
“It’s pretty shocking to see a new player – one that many are not aware of – rise to become a bigger advertiser in the space than Walmart, in terms of the companies we support.”
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By the numbers. Among the most interesting stats highlighted in the 31-page report:
YouTube ad-impression growth remained strong at 34% year-over-year (YoY), while the average CPM fell 18%.
YouTube spending on connected TVs (CTVs) shot up 31% YoY, however, desktop spending fell.
Desktop YouTube spend dropped by 27% YoY in Q2 2023, with the desktop share of YouTube spending falling from 20% to 14% during the same period.
Reels ads now account for 11% of Instagram ad impressions.
Advertisers grew investment in Meta properties 9% year-over-year in Q2 — the strongest quarter since Q1 2022.
Walmart Sponsored Products spend rose 39% year-over-year in Q2, as ad pricing declined just 4% in the second quarter compared to a 41% decline in Q1.
The report. You can download Tinuiti’s latest Digital Ads Benchmark Report to dive deeper into all the numbers and trends.