VIDEN Digital Advertising Insights and Trends for eCommerce Newsletter: 1st Edition
VIDEN - eCommerce Advertising Partner
Data-Driven Digital Advertising for eCommerce | Paid Search, Paid Social, Creative
So, where do we start? Well, we all know that setting up and managing successful ads campaigns can be challenging: crafting compelling ad copy, budget management, keyword selection, and more difficulties to struggle with. Such complexities require deep expertise and dedication that many businesses may not possess in-house. This is where professionals come into play. Discover 6 crucial aspects to look at when choosing a digital advertising agency, and find a checklist to consider before hiring a digital advertising agency in our article.
Let’s move on and address the question that's on every business mind. Working with the right agency is essential for business growth indeed, but understanding ads costs is a must if you don't want to break the budget. As the world's largest and most popular platform, Google Ads remains a powerhouse for online advertising. Knowing the current pricing landscape can make or break your marketing strategy. Our ads expert, Olga Bobchenok , helps you define the right Google ad spend to budget effectively. Read her article.
If you're already running campaigns and want to know about the changes in Facebook and TikTok ads costs to make the most of your advertising budget, click the link to explore how much they cost in 2024. Below, you will also find a quick summary of US ads costs updates in Q1. Keep reading to stay informed about ad cost trends.
Across the major US digital ad platforms, only Amazon Sponsored Products saw slower pricing growth in Q1 2024, but all have seen a significant increase in pricing growth since Q1 2023.
Are you running Google ads campaigns now? If the answer is “Yes,” you have probably noticed the cost rise. In the most recent year alone, from Q1 2023 to Q1 2024, the median CPC for Google retail search ads increased by approximately 20%.
Good news for those running Amazon ads campaigns: In Q1 2024, CPC growth decelerated from 19% to 11%.
How about Meta ads? Have you noticed any changes? In Q1 2024, Facebook's CPM decreased by 2% year-over-year, marking the seventh consecutive quarter of such declines. However, this was the smallest drop recorded during this period.
In the first quarter of the year, Instagram CPM increased by 6% year-over-year, marking the second consecutive quarter of growth and an improvement from the 2% rise in Q4.
If you are running TikTok ad campaigns, you probably marked some cost changes. In the final month of 2023, the median TikTok advertiser experienced a 14% decline in CPM. However, this trend reversed with a 9% increase in January, culminating in a 17% rise by March. The 15% CPM growth observed in Q1 2024 was the largest since Q1 2023, when CPM soared by 44% year-over-year.
Now it’s time for another important topic. No matter what platform you choose, whether Google, Meta, or other, you can't ensure your ads campaigns are successful without proper analytics. We know it can be tough to effectively analyze and interpret data and, therefore, drive actionable insights to optimize your campaigns. Here comes our marketing analyst, Darya Kislova , to share in the article guidelines on how analytics can systematically enhance your ROAS/ROI across three progressive levels of analytical sophistication: Basic, Intermediate, and Advanced.
Finally, let's dive into Google Analytics 4, a powerful tool for data-driven decision-making (DDDM). Historical data helps you understand customers' journeys, identify trends, and make informed predictions. By analyzing past behaviors and patterns, you can gain valuable insights into preferences and thus optimize campaigns effectively. The optimal duration for retaining data varies according to your business goals, but extending it can offer a more comprehensive insight into your data. Our analytics expert, Rustam Faskhutdinov , will explain how to extend the retention period in GA4. Read his article.
We are convinced that being up-to-date isn't just about staying in the flow; it's about staying ahead. By remaining informed about the latest updates, trends, and technologies, digital advertisers can adjust their strategies, optimize their campaigns, and ultimately achieve marketing success. Let’s delve into the key digital advertising trends of 2024.
Our experts highlighted 5 trends businesses should follow in 2024:
1. Transitioning Beyond Third-Party Cookies
We can see a significant shift from third-party cookies to privacy-by-design targeting methods. According to the Etude Industry Pulse 2024 survey, over a quarter of respondents cited reduced access to consumer data and/or cookies as one of the top three challenges they expect to face in 2024.
Increasingly stringent data privacy regulations drive this transition, which completely reinvents audience targeting and measurement, necessitating a stronger integration with technologies that balance privacy with targeting precision.
A 2023 survey of retail and eCommerce advertising leaders in the UK revealed that more than half anticipate an increased advertising budget for direct TV/OTT (over-the-top) ads due to changes in third-party cookies. Additionally, 36% expect higher budgets for display YouTube ads, followed by 31% for retail media networks, 23% for TikTok advertising, and 8% for search ads.
2. The Rise of AI
A recent research report by Material and Newtone X reveals that 59% of respondents consider AI the primary topic, with a generally positive outlook on its potential to revolutionize industry practices in the short and long term. According to Hubspot State of Marketing research, 40% of businesses have hired dedicated AI experts to support their marketing teams. Forrester revealed that 91% of U.S. ad agencies are currently using or exploring generative AI. Large agencies are leading in adoption, with 78% of respondents from agencies with over 200 employees leveraging the technology, compared to only 53% from smaller agencies with fewer than 50 employees.
Throughout 2024, businesses are expected to leverage AI in two main ways:
3. More Spending on Video Ads
The growth of social media advertising has significantly shifted the focus toward digital video. Hubspot reveals that 82% of users post video content on Instagram, and the content formats they use most are video-based. Video ad spend (which will make up 55.2% of total social network ad spend) will increase by 21.2%. Advertisers use short video ads tailored for mobile viewing as consumers spend more time on their mobile devices.
4. Optimizing Ad Placements During Election Seasons
Election cycles, especially U.S. presidential election years, pose significant challenges for advertisers. The influx of political content saturates the media landscape, making it difficult for non-political ads to capture attention and achieve impact.
RetailMeNot reports that 90% of retailers adjust their marketing because of the upcoming election. As election season approaches, the advertising market is set for intense competition, with ad spending expected to surge by 31.2% from 2020, according to Axios. This surge will likely drive ad costs up, especially in the weeks leading to November.
Brand Muscle advises advertisers to anticipate a 15-50% increase in CPMs for CTV and paid social CPC during the key six weeks of the election (September 15–November 5) and other significant dates throughout the year in battleground states.
5. A Data-Driven Approach for Optimizing Ad Spend and Effectiveness
According to Forbes, data-driven strategies for ad spending and effectiveness are expected to become increasingly sophisticated and practical, enhancing consistency and reliability.
Businesses must adopt advanced analytics and machine learning to refine their advertising strategies. This approach goes beyond basic clicks and impressions, delving into a deeper understanding of consumer behavior, effective audience segmentation, and accurate trend forecasting. Essential tools will include A/B testing, segmentation analysis, and predictive analytics. This sophisticated, data-driven decision-making will allow for more strategic budget allocation, precise audience targeting, and higher returns on investment.
Make sure you watch and follow these global trends to accelerate business growth. But how does the US ad market differ from the global one? Let’s find out.
According to financial analyst Brian Wieser, advertising expenditure in the US is projected to increase by 5.6% this year, reaching $360 billion. Notably, this growth forecast excludes political advertising, which Wieser anticipates will total $15.5 billion across all media. Digital ad revenue is expected to grow by 10.7%, nearly double the overall ad spend growth. Leading this increase will be retail media and social commerce.
Additionally, insights from the recent Digital 2024 Global Overview Report indicate that 72% of America’s advertising budget is allocated to digital advertising. In the U.S., the penetration of programmatic advertising is significantly notable. As of January 2024, it accounted for 81.9% of the total digital advertising expenditure. This underscores the growing influence of programmatic advertising on the digital market in America, corroborating forecasts by Insider.
Statista projects that digital advertising expenditures in the United States will increase by 50% between 2024 and 2028. U.S. digital ad spending will grow from 303 billion dollars to 452 billion in that five-year period.
This significant growth highlights the importance of strategically planning campaigns. The most successful brands plan their promotions and sales events well ahead of time. Here comes a promotional calendar for shopping events as a comprehensive strategic tool and a roadmap coordinating all marketing activities for a particular campaign.
Not sure when it's the best to start planning campaigns? We've put together all eCommerce events until the end of 2024 to guide you when it’s better to start working on your campaigns based on the best practices. Don't miss this opportunity to launch your campaign at the right time to maximize the results.
It’s essential not only to start your promotions just in time but also to stay up-to-date in the ever-evolving digital landscape. Being current with industry updates ensures your marketing efforts remain effective, relevant, and impactful in a fast-paced digital world. Let’s delve into the innovations in digital advertising.
Have you explored the newest ads innovations of the first half of 2024? If not, our experts made a roundup of new features and announcements from Google, Meta and Amazon. Our CMO, Victoria Saniukevich , will walk you through the key updates.
Google has improved its AI-powered broad match feature to help you reach customers regardless of how they search. To make these enhancements more accessible, Google has introduced four updates to query matching and brand controls:
At the end of June, Google also revealed the Cross-Media Reach Measurement tool in Google Ads, helping measure deduplicated, on-target reach and frequency across video campaigns. Cross-Media Reach enables advertisers to compare the reach efficiency of their Video Reach and Video View Campaigns on YouTube with TV, offering a comprehensive view of their brand campaigns across both channels.
In May, Google showcased new products and updates regarding AI, Performance Max, Search, Demand Gen, YouTube, Measurement and Audiences, and Apps. Have you watched Google Marketing Live 2024? If not, check our brief overview of the key announcements.
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At the beginning of June, Google introduced Brand Recommendations powered by Google AI. These recommendations help advertisers enhance the effectiveness and performance of their campaigns, ensuring they achieve their campaign goals using the latest Google Ads best practices.
At the end of April, Google Ads announced six new AI features for Performance Max campaigns:
Responsive search ads can now show one headline when it’s predicted to improve your performance. As part of this change, a headline can now be shown at the beginning of description lines.
With the campaign level headlines and descriptions feature, you can associate up to 3 headlines and 2 descriptions at the campaign level, making it easier to add headlines and descriptions.
If you opt in to account level automated assets, Google AI can create assets on your behalf, showing the best performing assets for each query.
Google Consent Mode was updated to comply with the Digital Markets Act (DMA) effective March 2024. While the old version will still work, upgrading to V2 is essential for full functionality. Without the update, data transmission to Google will be hindered, leading to less optimized advertising campaigns. Find out the checklist to ensure you use consent mode.
In May, Amazon Ads introduced three new interactive and shoppable ad formats for streaming TV on Amazon Prime Video:
New ad formats from Meta
Recently, Meta announced new ad formats for the upcoming holiday season topic:
Remember to integrate ad innovations into your marketing strategy to stay ahead of your competitors and connect with your audience in more meaningful and impactful ways, especially during the holiday season.
How do you plan the holiday season campaigns? Our expert, Julia Yanukovich , shared the Holiday Checklist for your Meta campaigns to help you market your business effectively throughout the holiday season.
Take advantage of seasonal efficiencies
✔️ Start planning your campaigns early (September/October).
✔️ Allow your budget to be flexible throughout the season.
✔️ Plan for Q5 campaigns to take advantage of auction efficiencies.
Drive and meet demand with automation
✔️ Maximize holiday sales with Advantage + shopping campaigns and Advantage+ catalog ads.
✔️ Use automation features like budget scheduling and ad scheduling.
✔️ Consider Shops ads if you have a checkout-enabled Shop.
✔️ Run Advantage+ app campaigns in advance of the holidays to enable customers to easily shop via your app.
Build seasonally relevant creative
✔️ Create breadth of messaging, in a mix of concepts/formats that speaks to the season and diverse needs of customers.
✔️ Meet customer expectations for sales by highlighting your promotions and running reminder ads.
✔️ Consider using generative Al to diversify your holiday creative at scale.
✔️ If you have a catalog of products, ensure your catalog creative is holiday-ready.
You are not surprised that the landscape is becoming more complex and regulated than ever before. For marketers, staying abreast of these regulations is not merely a matter of compliance but a strategic necessity. Let’s finish our newsletter with new regulations in digital advertising.
Have you heard about new regulations across the EU and the US? We will guide you through this question.
The regulatory environment governing digital advertising continues to evolve, presenting businesses with challenges and opportunities. Pay attention to new rules and regulations released in Q1 2024 and those coming into operation by the end of the year.
Why is it important? Staying informed about digital advertising regulations is about fostering a sustainable and reputable business that can adapt to the evolving digital landscape. Understanding these regulations will be necessary to build trust with consumers.
What impact will the latest legislation from Europe and the United States have on digital advertising in 2024 and beyond? Let’s find out!
The EU has led consumer privacy with GDPR, tackled misinformation, and targeted ads with the Digital Services Act (DSA).
While some DSA requirements began in 2023, full implementation and enforcement started in February 2024. The DSA mandates social platforms like Facebook, Instagram, and YouTube intensify efforts against misinformation and hate speech and ban targeted ads based on ethnicity, religion, or sexual orientation. Google and Meta now face annual audits to detect "systemic risks." Search engines must suppress misleading results, and Amazon must follow new rules to prevent the sale of illegal products.
In 2023, new regulations were introduced in Virginia, Colorado, Connecticut, Utah, and California. This year, Texas, Oregon, and Montana are adopting new rules, with more states to follow in 2025 and beyond.
The California Privacy Rights Act (CPRA) is the most extensive state-level regulation, requiring companies to allow consumers to opt out of the sale or sharing of their personal information, including for cross-context behavioral advertising.
At the federal level, a bipartisan group of lawmakers proposed the American Privacy Rights Act (APRA) in April 2024. If enacted, it would establish comprehensive national data privacy rights, allow individuals to sue for violations, set strong data security standards, and empower the FTC to enforce these rules.
Additionally, other proposed federal legislation could potentially end the dominance of Big Tech's Big Four, further transforming the digital advertising landscape.
What does it mean for digital marketers in perspective?
The Digital Services Act could potentially lead to safer advertising environments on social media, helping brands and users enjoy a more hospitable digital ecosystem. However, it also means that some aspects of targeted digital advertisements in the EU will be slightly less personalized.
The CPRA aims to give consumers more transparency and control over their personal data, at least in states with such laws. The APRA represents Congress's best chance to pass a federal data privacy law.
Consumers want a unified experience but demand control over who accesses their personal data in advertising. If Big Tech and the advertising industry fail to self-regulate on consumer privacy, governments are ready to step in and enforce regulations.
“We’d like to conclude our 1st newsletter edition with the words from one of the greats in advertising, Leo Burnett.
This profound statement embraces what truly impactful digital advertising strives to achieve. The power of well-crafted digital advertising campaigns can also be discovered in the impressive statistics and results they drive (for example, in increased brand awareness by 80%).
We hope you find inspiration in the insights we've shared and continue to create successful ads campaigns to drive your business growth.”
Best Regards,
Founder and Managing Partner at VIDEN - eCommerce Advertising Partner
Senior Graphic Designer | VIDEN - Premier Google Partner | 8+ years experience in Marketing Design
5moCongratulations on the launch of Viden Insights Newsletter! Looks like the first edition is packed with valuable information and innovative perspectives. Excited to see how it continues to inspire and inform. Well done!
Head of Marketing @ VIDEN | Meta Ads and Google Ads for DTC eComm Brands | Growth Advisor
5moThat's great news! Thank you for sharing, it's a great chance to take a look at the most insightful content of the month. Must-have for all eComm businesses 💯
Customer Success Manager @VIDEN | Digital Advertising & Analytics for eCommerce | Google & Meta Ads
5mo⬅ New platforms, technologies, and strategies constantly emerge, offering innovative ways to connect with your audience and achieve your business goals. The key to success lies in staying informed, staying open to experimentation, and embracing constant learning.
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5mo👏
Marketer @VIDEN - Your eComm Ads Partner | Google Ads, Meta Ads, TikTok Ads & Amazon Ads Services
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