Amazon's digital advertising growth stands out in a slowing market. In Q3, the growth of Amazon Sponsored Products nearly doubled to 15%, compared to 8% in the previous quarter. This surge is largely attributed to Amazon’s Prime Day, which saw a 29% increase in ad spending compared to last year’s event.
In contrast, Google’s paid-search advertising is experiencing a downturn. Text ads and shopping have grown by 11%, down from 14% in Q2. However, spending on shopping campaigns rose 16%, showing some resilience amid the fluctuations.
The launch of Google’s AI Overviews in May has altered click-through rates (CTRs) across various ad segments. While AI Overviews serve non-branded queries and occupy a larger share of phone screens, they initially impacted CTRs negatively. From April to its lowest point in July, non-branded keyword CTRs on mobile devices dropped by 14%.
However, there’s good news. In August and September, CTRs began to recover across device and keyword segments. They remain 4% lower than in April 2024 but are up 6% since the beginning of the year. Andy Taylor, vice president of research at Tinuiti, notes, “As we saw a drop in non-branded text ads' click-through rates on phones, standard shopping campaigns improved. These campaign types compete in the same auctions, and shifts in one can influence the other.”
The insights come from the Tinuiti Digital Ads Benchmark Report, which is based on anonymized performance data from advertising programs with over $4 billion in annual digital ad spend. The report also highlights intriguing trends in video and display advertising.
YouTube's ad spending grew by 11% in Q3 2024, a sharp decline from the 28% growth seen in Q2. The deceleration aligns with broader revenue trends for YouTube and reflects the strengthening comparisons to previous years. Taylor observes that viewers increasingly access content through television sets, yet YouTube continues to lag behind other streaming platforms in terms of ad spend share.
Interestingly, YouTube TV ad spend more than doubled compared to other devices, accounting for 34% of YouTube spending in Q3 2024, up from 30% the previous year. Spending on YouTube ads on TVs increased by 24% year-over-year, illustrating a shift toward TV screen consumption. In contrast, ad spending on phones grew by 10% year-over-year, but their share of overall spending slipped from 50% in Q3 2023 to 49% in Q3 2024. Tablets saw the most significant decline, with spending dropping from 8% to 6% over the same period.
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In contrast, Google’s paid-search advertising is experiencing a downturn. Text ads and shopping have grown by 11%, down from 14% in Q2. However, spending on shopping campaigns rose 16%, showing some resilience amid the fluctuations.
The launch of Google’s AI Overviews in May has altered click-through rates (CTRs) across various ad segments. While AI Overviews serve non-branded queries and occupy a larger share of phone screens, they initially impacted CTRs negatively. From April to its lowest point in July, non-branded keyword CTRs on mobile devices dropped by 14%.
However, there’s good news. In August and September, CTRs began to recover across device and keyword segments. They remain 4% lower than in April 2024 but are up 6% since the beginning of the year. Andy Taylor, vice president of research at Tinuiti, notes, “As we saw a drop in non-branded text ads' click-through rates on phones, standard shopping campaigns improved. These campaign types compete in the same auctions, and shifts in one can influence the other.”
The insights come from the Tinuiti Digital Ads Benchmark Report, which is based on anonymized performance data from advertising programs with over $4 billion in annual digital ad spend. The report also highlights intriguing trends in video and display advertising.
YouTube's ad spending grew by 11% in Q3 2024, a sharp decline from the 28% growth seen in Q2. The deceleration aligns with broader revenue trends for YouTube and reflects the strengthening comparisons to previous years. Taylor observes that viewers increasingly access content through television sets, yet YouTube continues to lag behind other streaming platforms in terms of ad spend share.
Interestingly, YouTube TV ad spend more than doubled compared to other devices, accounting for 34% of YouTube spending in Q3 2024, up from 30% the previous year. Spending on YouTube ads on TVs increased by 24% year-over-year, illustrating a shift toward TV screen consumption. In contrast, ad spending on phones grew by 10% year-over-year, but their share of overall spending slipped from 50% in Q3 2023 to 49% in Q3 2024. Tablets saw the most significant decline, with spending dropping from 8% to 6% over the same period.
Read next: TikTok's EU User Base Grows by 8 Million; Content Removals Drop to 3.7 Million Monthly Average
