The cost of search, social and retail media advertising grew by double digits in the final three months of 2021, according to data from digital advertising company Skai.
Search cost-per-click (CPC) saw the largest rise, increasing by 23% year on year to $0.71 in Q4 2021. Social cost per thousand (CPM) also saw a large increase, up by more than a fifth (22%) to a new high of $9.13.
Retail media costs also reached a new high of $1.10 in Q4 2021, a 13% increase from the previous year.
Alphabet, Meta and Amazon, who take 46% of all advertising investment, will be some of the main beneficiaries of higher prices. Strong advertiser demand for e-commerce placements will also help newer entrants like Walmart, who recorded $2.1bn in advertising revenue last year.
This strong growth in advertising spend and costs looks likely to continue in 2022 – WARC Data’s forecast puts total advertising growth at 12.5% this year, with e-commerce set to be the quickest-growing medium. Additional research shows media inflation of 4.5% is expected worldwide this year, with TV and online video seeing the largest increase.
Credit: WARC