Marketers have increased their ad spend across Google, Meta, Amazon and Walmart.
Another major digital platform to have reported huge success in Q2 2023 is fashion brand, Temu.
The company became a major player in the Google Shopping race during the first two quarters of the year, 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 of course 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 Tinuiti’s success was unexpected. He said:
“It’s pretty shocking to see a new play – 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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Key findings. There were a number of interesting stats highlighted in the 31-page report that may be of interest to marketers, including:
- 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.
Deep dive. Read Tinuiti’s latest Digital Ads Benchmark Report for more information.