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Social CPMs dive double digits as marketers navigate monetization challenges

For more insights and key statistics on the biggest trends in today’s most disruptive industries, subscribe to our Chart of the Day newsletter.

Key stat: Paid search CPMs declined by double digits YoY every quarter in the past four quarters—29% in Q2 2023 alone, per Skai. Paid search CTRs have not seen the same pattern of decline.

Behind the chart:

  • As social media network user growth wanes across key platforms and advertisers navigate the complexities of measurement post AppTrackingTransparency (ATT), social media platforms have increased ad loads to boost revenue.
  • Pinterest’s ad load increased by 30% in Q2 of this year, while Meta's ad inventory grew by 34%. While these higher ad loads are contributing to an increase in social ad spend, we project US social network ad spend to increase just 3.4% this year.
  • Social platforms will prioritize lower-funnel formats, leveraging AI to drive commerce through initiatives like Meta’s Advantage+ Shopping Campaigns (ASC+).

Use this chart:

  • Budget your 2024 paid social spend based on recent ad trends.

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