At the same time, all five of the platforms saw pricing on a CPM basis flat or down substantially. Instagram, while growing fastest, also had the biggest CPM decline, which Taylor attributed to newer platforms such as Reels tending to have lower pricing and attracting lots of spending.
In a similar fashion, spending on TikTok, a relatively newer platform with a steady stream of new ad products, rose 11% even as CPMs fell 4%.
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Google paid search spending growth has stabilized since the fourth quarter, up 11% last quarter up from 10% last quarter, and cost per click was flat after declining last quarter. Cost per click among retail advertisers continued at a healthy pace from last year, up 25%. This was despite the average order value rising only 1%, which means a margin squeeze for Google search advertisers.
Amazon slows and Walmart grows
Spending growth on Amazon Sponsored Products slipped to 8% in the second quarter from 12%-25% in the prior three quarters, with cost per click declining 2%. Amazon Sponsored Display spending declined by 1% on a 10% decline in cost per click.
Walmart grew faster, with sponsored products spending up 39% on a 4% decline in cost per click. The retailer’s move last year to second-price auction bidding continued to help drive spending, but the decline in CPC moderated year over year, Taylor said, and Walmart’s CPC actually soared 41% in June as it hit the anniversary of the second-price auction move.