Comparisons to Previous Month (February 2024):
The table below reports the percentage changes in key metrics across digital channels when compared to the preceding month, March 2024. For each metric, positive percentages denote growth, while negative figures signify a decline.
Month-Over-Month Takeaways:
Declines in CPM for X: The Super Bowl represented a pinnacle of activity for X, marked by intense discussions and a notable surge in CPM. As a result, the average CPM for March experienced a downturn, likely attributed to the combination of February's Super Bowl-induced high CPMs and a subsequent overall dip in demand for X's inventory.
YouTube experiences performance shifts: YouTube saw a rise in CPM and CPC relative to the prior month, indicating that advertisers are facing higher costs to reach their target audiences on the platform. However, alongside these increases, there has been a worrying decline in CTR. These trends may signal some potential challenges for the platform, such as reduced availability of ad placements or a disconnect between ad content and viewer engagement.
TikTok holds strong in the face of the vote in the House of Representatives: TikTok has seen a further increase in CPM, transitioning into March with a modest 7% uplift, signaling a rise in demand. We see advertisers increasingly leveraging TikTok even with the potential ban, underscoring its significance within the digital landscape. Additionally, CPC rates have escalated, and while CTR has diminished, these changes remain aligned with broader market dynamics.
Comparisons to Previous Year (March 2023):
The table below reports the percentage changes in key metrics across digital channels when compared to the preceding year, March 2023. For each metric, positive percentages denote growth, while negative figures signify a decline.
Year-Over-Year Takeaways:
Instagram Reels is the place to be: Year-over-year, Instagram's overall CTR has surged by 131%, a growth predominantly propelled by Instagram Reels, where the CTR has skyrocketed by an astounding 495%. This highlights the platform's enhanced capability to direct users to websites via Reels. Additionally, for Instagram Reels, the CPM has dropped by 22% year-over-year, suggesting a possible increase in available inventory due to more users engaging with Reels or a lack of focus from advertisers in capitalizing on this evolving platform.
When we examine the demographics, it's evident that the surge in click-through rates (CTR) across Meta primarily stems from the 25-34 and 18-24 age brackets, which recorded a year-over-year (YoY) growth in March of 842% and 661% respectively—marking the most substantial growth among all age groups. This indicates that the late Gen Z and early Millennials are the key drivers of this significant YoY increase in CTR. However, it's worth noting that despite not experiencing as pronounced a growth, the 45-54 age group maintains the highest CTR compared to any other demographic segment.
Search in general is down YoY: Google Ads Search and Bing have both experienced declines in CPC**. For Google, this trend is likely attributable to a redirection of budgets towards Performance Max, which has gained favor for its efficacy and ease of use. On the other hand, the downturn for Bing may stem from a diminishing significance among advertisers.
Instagram and Pinterest are on the rise: Building on our February findings, Instagram and Pinterest persist in showcasing substantial year-over-year growth in CTR. This pattern affirms the impact of Meta's focus on algorithm optimization and Pinterest’s new interactive features and advertising formats.
** Note: As Google Ads Search and Bing are demand capturing platforms where you bid on clicks, CPC is a much more effective measure of demand compared to CPM which is a better indicator for the other platforms.