Tracer’s 2024 Mid-Year Review: Key Metrics, Industry Stories, and Future Outlook

2024 Advertising Trends: Spotlight on Key Platforms

Breaking Down Platform Proportional Spend Trends 

The visual below shows how digital advertising budgets shifted from January to June 2024 compared to the same period in 2023. Each line represents a platform, with the x-axis displaying the years 2023 and 2024. The percentages indicate each platform's share of the total $90M+ spend for that year. The highest percentage spend per year is at the top of the graph, while the lowest is at the bottom. The crossing lines demonstrate changes in spending allocations, with some platforms moving lower in 2024, indicating decreased proportional spend. This visual highlights which platforms have gained or lost ground over the past year.

Key Insights:

• X’s Spending Dive: Proportional spend on X plummeted dramatically from 4.7% in 2023 to just 0.1% in 2024.

• Google Search Spend Slips: Percentage spend on Google Search decreased from 16.1% to 11.7%, potentially due to a shift toward Google Performance Max, which saw an uptick from 4.7% to 6.6%.

• TikTok Investment Soars: Spend share on TikTok increased significantly from 12.5% in 2023 to 14.7% in 2024.

• Instagram Spending Surge: Proportional spend on Instagram soared from 12.8% to 18.2%. A significant part of this increase is driven by higher investment in Instagram Reels. In 2023, Instagram Reels accounted for 1.9% of total spend, which rose to 3.6% in 2024—a remarkable 86.2% increase in spend dollars.

• Stable Spend on Others: Spend allocations on other platforms remained steady from 2023 to 2024.

For us, data is the best way to navigate the constantly changing landscape, and actually stay focused on future opportunities for growth. Data fuels our creative intuition and inspiration but also keeps us laser focused on the most effective execution. This allows us to deliver the best work that works hardest for our clients.

Craig Atkinson, CEO, Code3

Evaluating Platform Performance Trends

The table below highlights the year-over-year percentage changes in key metrics across digital channels for January to June 2024, compared to the same period in 2023. Positive percentages indicate growth, while negative values signify a decline. This snapshot provides insight into how each platform is evolving and adapting within the ever-changing digital landscape.

Key Insights:

TikTok’s unstoppable rise amid uncertainty

TikTok reported the most significant year-over-year rise in CPMs of all the platforms, climbing 16%. This sharp increase reflects heightened competition among advertisers. At the same time, TikTok saw a 23% boost in CTRs, signaling robust user engagement despite ongoing uncertainties about the platform’s future. These trends highlight the strong dedication of both advertisers and users to TikTok.

Skyrocketing engagement at Instagram, Pinterest, and YouTube

Instagram, Pinterest, and YouTube have seen substantial increases in CTRs the first half of 2024 compared to the same time last year. Instagram’s CTRs soared by 89% from 2023 to June 2024, while YouTube and Pinterest posted gains of 77% and a remarkable 395%, respectively. These significant boosts may be linked to recent platform updates, such as Instagram Reels’ algorithm enhancements, Pinterest’s new interactive features, and the introduction of YouTube Shorts. Notably, the increase in user engagement on Instagram is largely attributable to Instagram Reels, which saw a 455% increase in CTR from 2023 to 2024, compared to ~120% increases for other placements like Stories, Feed, and Explore. Overall, these changes seem aimed at capturing more user engagement as these platforms work to attract advertisers amid the ongoing uncertainties surrounding TikTok. Although it remains to be seen if these strategies will succeed, it’s noteworthy that advertising costs on these platforms have either remained stable or decreased: Pinterest’s CPMs fell by 9%, YouTube’s increased by just 5%, and Instagram’s rose slightly by 3%. Interestingly, CPMs on Instagram Reels decreased by 9%, making it an attractive option for advertisers. Given these developments, advertisers should consider leveraging these platforms more actively.

Google Performance Max shines with shifting ad trends

While Google Search Ads have seen a significant decline in user engagement and advertising competition, Google Performance Max remains robust. CTRs are up 13%, reflecting the platform's effectiveness in generating user clicks. However, this increased effectiveness is accompanied by rising CPMs (up 8%), indicating growing competition among advertisers for visibility. Interestingly, CPCs have decreased by 4%, suggesting that while the competition for impressions is heating up, the cost per click has become more efficient. These trends are likely a result of advertisers shifting their budgets towards Google Performance Max, which is gaining favor for its efficiency and ease of use. 

X faces a sharp downturn

X is now facing a sharp downturn. From the first half of 2023 to the same time period in 2024, X's CTR has dropped by a striking 60%, signaling a significant decline in user engagement. This decrease follows a period of growth and suggests that user activity on the platform has diminished considerably. Additionally, CPMs for X have also fallen by 35% during this period, reflecting a broader trend of advertisers pulling back from the platform. This trend highlights a notable shift in both user interest and advertising investment on X.

LinkedIn sees rising ad costs

LinkedIn has experienced a notable surge in advertising costs, with CPMs rising by 13% from the first half of 2023 to the first half of 2024. This increase in CPMs is coupled with a 27% drop in CTRs, leading to a 54% spike in CPCs over the same period. These developments suggest that LinkedIn is becoming a more costly platform for advertisers. The future will reveal whether these rising costs continue and how advertisers will adapt to these changes.

Bing’s boosts user engagement

In the first half of 2024, compared to the same period in 2023, Bing experienced a 14% rise in CTRs, signaling higher user engagement, possibly driven by Microsoft's Copilot AI. Despite this boost in engagement, advertising costs have dropped significantly, with CPMs down 29% and CPCs down 38%, indicating reduced competition among advertisers. This unique combination of increased user interaction and lower advertising costs positions Bing as a platform worth watching for advertisers.

Data has become the cornerstone of modern marketing, offering CMOs unparalleled insights to optimize campaigns, personalize customer experiences, and demonstrate ROI. By leveraging advanced analytics and real-time tracking tools, marketers can manage the complexity of today's media landscape, make data-driven decisions, and align their strategies with business objectives to drive significant improvements in performance and customer satisfaction.

Bradley Keefer, Chief Growth Officer, Keen Decision Systems

The Defining Stories from the First Half of 2024

Super Bowl 2024: A Wake-Up Call for Women's Representation in Advertising

The Super Bowl of 2024, held on February 11, broke records as both the longest and most-watched game ever, largely driven by Taylor Swift's star-studded appearance. This dramatic increase in viewership, especially among women, marked a significant shift in digital advertising. Analyzing three years of Meta's post-impression data through Tracer (2023-2024), it was evident that ad impressions targeted at females surged in the days leading up to the Super Bowl, starting from four days prior (SB - 4), peaking on game day (SB). Yet, despite women comprising 47.5% of the audience, the proportion of ads shown to them on Meta platforms fell to its lowest point in three years. The graph below highlights our findings. This indicates that female viewers were more engrossed in the game itself rather than interacting with social media content.

For advertisers, this highlights the need to adapt strategies for major events like the Super Bowl. As female engagement with such high-profile events grows, there is an opportunity to refine targeting approaches and enhance representation in advertisements. Current data reveals that only 26% of ads are making strides towards inclusivity, with just 16% of women feeling accurately represented. To connect more effectively with female audiences, advertisers should focus on improving targeting strategies and ensuring authentic, stereotype-free portrayals. This shift towards more genuine representation can foster deeper connections and set new benchmarks for authenticity in advertising.

Solar Eclipse 2024: A Cosmic Pause from the Digital Noise

The solar eclipse on April 8, 2024, offered a rare and mesmerizing spectacle that momentarily diverted attention from the digital realm. We analyzed over 400 million ad impressions on Meta over four days — i.e., the day of the eclipse (April 8), two days before the eclipse (April 7), and the day after the eclipse (April 9). This analysis revealed a surprising 14% drop in click-through rates (CTRs) on the day of the eclipse compared to the previous day. This decline was even more pronounced in regions that experienced totality, where the moon completely obscured the sun. These findings suggest that the celestial event effectively drew people’s focus away from their devices and towards the sky. The graph below showcases our findings by plotting CTR values as an index relative to the average CTR on April 6, two days before the eclipse. Each line highlights the relative CTR for the time period analyzed, with the index set at 1.00 for the average CTR on April 6. For example, a relative CTR of 0.90 indicates that the CTR on a given day was 90% of the average CTR on April 6.

This temporary shift in attention highlights the powerful impact of extraordinary natural phenomena in breaking the digital monotony. In an age where screens and notifications often dominate our attention, the eclipse served as a profound reminder of the wonder and awe that the natural world can offer. As we navigate a landscape increasingly consumed by technology, such moments remind us to occasionally look up and appreciate the beauty around us.

TikTok’s Defiant Surge Amid Ban Threat 

In March 2024, a pivotal U.S. House of Representatives vote cast doubt on TikTok's future, mandating that its parent company, ByteDance, either divest the platform or face a nationwide ban. The bill moved to the Senate, which passed it in April 2024, and President Biden subsequently signed it into law. The new legislation grants ByteDance until January 2025 to sell TikTok or face a nationwide ban. There is a potential 90-day extension if the President determines that significant progress is being made toward the sale. With the extension, the latest a ban could begin is April 2025. Although TikTok has hinted that the company may pursue legal action that could result in additional delays.

Despite this legislative upheaval, TikTok saw ad expenditure surge by over 20% immediately following the March vote, contrasting with minimal increases during the same period on other platforms. TikTok continued to experience significant growth in advertising spend, CPMs, and CTRs during the first half of 2024, reflecting ongoing commitment from both advertisers and users. Additionally, Pew Research Center data indicates a decline in public support for a TikTok ban, suggesting the platform's enduring appeal amid the legislative uncertainty. The legislative drama surrounding TikTok highlights the platform's resilience and its critical role in digital advertising, reinforcing the need for advertisers to stay adaptable and vigilant in navigating the shifting landscape. The graph below illustrates our findings by plotting CTR and CPM values as indices relative to the average CTR and CPM for January 2024. The lines highlight the relative CTR and CPM (one line for each) for the time period analyzed, with the index set at 1.00 for the average of each metric in January 2024. For example, a relative CPM of 1.25 indicates that the CPM for that month was 25% higher than the average CPM in January 2024.

Looking to the Future

As we transition into the second half of 2024, the insights gleaned from the first half reveal a shifting digital marketing terrain. The changes in spending patterns, user engagement metrics, and industry dynamics underscore the necessity for advertisers to remain agile and forward-thinking. With platforms like TikTok experiencing notable growth despite external challenges, platforms like Instagram and Pinterest due to platform changes and additions, there is a clear imperative to adapt strategies in response to these trends.

Marketers should closely monitor the ongoing changes and leverage emerging opportunities, particularly on platforms that are experiencing heightened user engagement. The substantial shifts in advertising costs on LinkedIn and the concerning decline of X emphasize the importance of reassessing budgets and targeting strategies. As female representation and engagement in advertising continue to be pivotal topics, particularly highlighted by events like the Super Bowl, brands must prioritize inclusivity in their campaigns.

Additionally, the unique effects of extraordinary events, such as the solar eclipse, remind us of the broader context within which digital advertising operates. Marketers should embrace the unpredictability of the landscape, recognizing that external factors can significantly impact consumer behavior and engagement. Looking ahead, advertisers who prioritize authentic connections, inclusivity, and adaptability will be better positioned to thrive in this dynamic environment.

As we move forward, the following key strategies should be top of mind for marketers:

• Adaptation and Agility: Continuously reassess platform performance and audience engagement metrics to pivot strategies as necessary.

• Diversity and Inclusion: Focus on crafting campaigns that authentically represent diverse audiences, enhancing connection and relevance.

• Engagement Beyond Screens: Consider how real-world events and phenomena can influence digital behavior and tailor strategies to capture audience attention during such moments.

• Leveraging Emerging Platforms: Keep an eye on platforms like TikTok, Instagram, and Google Performance Max, which are showing promising increases in user engagement.

By embracing these insights and strategies, marketers can position themselves for success in the second half of 2024 and beyond.