Advertisers in the US aren’t so much retreating from digital advertising as being more cautious about how they spend. In each of the three advertising channels tracked by marketing analytics firm Skai, the volume of ads rose while unit pricing dropped in the first quarter of this year. In paid social advertising this led to a 27% decrease in pricing but a 33% increase in volumes, which equates to a 3% drop in spending. Advertisers are increasingly turning to retail media, where retailers like Amazon, Walmart and Kroger have a large presence. In retail media, pricing decreased 3% but volumes increased 34% resulting in 30% spending growth compared to last year.
Source: Skai, May 2023.