ClickZ Paid Social Marketer Newsletter - 11.07.2024

PLUS: Amazon stole the holiday crown from Google

Author

Sophie Bruxner-Randall
November 07, 2024 • Estimated Reading Time: 6 minutes

Editor’s Pick 🎯

YouTube surpasses forecasts in Alphabet's Q3 earnings call

Google parent Alphabet's Q3 earnings call revealed YouTube's impressive performance, bringing in nearly $9b in ad revenue—a 12.2% increase year-over-year. This substantial growth, typically undisclosed by Alphabet, signals the platform's rising dominance in digital advertising.

👉 Fospha highlighted this upward trend in their their latest report, identifying YouTube as the second-fastest-growing ad channel for eCom brands by ad spend.

While YouTube currently reports the highest CPA among Google channels as brands adapt and optimize their campaigns, its increasing popularity reflects a broader shift toward brand-building channels for long-term growth. The platform's potential for driving brand growth makes it one to watch in coming quarters.

Niche Nuggets 🔎

In Q3 2024, ad prices declined, impacting spending growth in search and social channels. Despite lower costs, ad volumes didn't fully compensate, leading to flat growth. Retail media saw a spike in clicks, while social media impressions surged, maintaining positive spending growth.

New ad formats emerged, outpacing traditional channels. Amazon DSP expanded its reach, boosting spending by 63%. Google Performance Max and Meta's Advantage Shopping Campaigns also saw significant growth. These trends reflect preparations for the Q4 shopping season, with retail media showing healthy YoY growth.

Skai's data highlights that while lower ad prices posed challenges, they unlocked greater ad volume in retail media. This shift suggests a dynamic industry landscape, encouraging you to explore innovative strategies for future growth.

LinkedIn now offers Lead Generation as an objective for boosted posts, enhancing your marketing strategy. This feature allows you to gather high-quality leads using first-party data, extending your reach beyond current followers. However, it lacks the comprehensive targeting options of LinkedIn's Campaign Manager.

This holiday season, Amazon has emerged as the top choice for gift inspiration, surpassing Google. While 74% of U.S. consumers plan to use Amazon, only 44% will turn to Google. This shift highlights the evolving landscape of online shopping, where consumers are increasingly seeking confidence in their purchasing decisions.

Generative AI chatbots like Google Gemini and ChatGPT are making a slight impact, with only 8% of consumers consulting them for gift advice. Meanwhile, 30% look to Facebook for ideas, and 25% prefer direct visits to favorite brand stores. Sustainability is a growing concern, with 12% considering it in their shopping choices. Additionally, 88% aim to save money, with 37% comparing prices online before purchasing.

The article outlines five key strategies for B2B lead generation using Google Ads: ensure accurate tracking, understand key metrics, prioritize long-term profitability over low CPA, utilize shared budgets and portfolios, and focus on search campaigns. Additionally, cautiously test Performance Max campaigns for potential lead generation benefits.

Leading Voices 📣

Jamie Bolton reveals how top eCommerce brands drive resilient growth:

🌐 Diversification is Key: A diverse channel mix acts as an “insurance policy” for brands amid rising CPAs and a challenging market.

🔄 Stay Agile: What worked last year may not work today. Top brands adjust their strategy over time, adapting to new growth levers as they mature.

📊 Measurement Matters: With channel diversity comes more complex measurement needs. Only with full-funnel attribution can brands assess their channel mix and remain agile.

For a full rundown, check out the full post!

Performance Pulse 📈

Ad prices fell in Q3 2024, impacting ad spend growth in search and social. Retail media saw a click surge, while new formats outpaced traditional channels. Amazon DSP and Google Performance Max showed significant growth. Lower prices increased ad volume, especially in retail media's purchase funnel.

To navigate rising holiday advertising costs, diversify your strategy by incorporating platforms like TikTok, YouTube, and Connected TV. These channels offer competitive pricing and reach new audiences. Focus on user-generated content and platform-specific strategies to optimize engagement and conversions, ensuring a successful holiday marketing campaign.

Front Row, an acceleration company, helps brands optimize e-commerce strategies on platforms like Amazon. By leveraging Deal Days, brands can boost sales and visibility. Success requires planning, unique offerings, and nurturing customer loyalty. Effective SEO and affiliate marketing are crucial for sustained growth and maximizing long-term benefits.

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