Digital Commerce Adspend Rises 55% As Costs Increase

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African American Hands Shopping In Online Ecommerce Store

Advertising spend on retail media platforms has risen by more than 50% as the cost-per-click reached a new high, according to data from digital advertising company Skai.

Retail media, covering platforms like Amazon, Walmart and Instacart, saw advertising spend rise by 55% in Q2 2021 while the number of clicks has increased by 25%.

WARC Data forecasts e-commerce advertising spend to rise by 35% this year, outpacing other media.

As spend is growing quicker than clicks, advertising costs on e-commerce platforms have increased – the average cost-per-click (CPC) for retail media advertising is now $1.01, up 24% (+$0.20) from a year before. Additional research suggests Amazon’s CPC has risen by 52% over the past year.

Higher costs could pose a challenge for advertisers as selling online becomes more competitive. As marketers invest more, aligning brand-building with performance marketing will be vital.

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