Walmart's ad prices are down on last year.This story is available exclusively to Insider subscribers.The price of retail advertising is largely coming down as retailers roll out tech tools for buying ads.Four digital ad buyers and adtech companies shared how much retailers charge for advertising.as advertisers look for strong performance and to use first-party data to target and measure ads.
"There seems to be slightly more competition but our CPCs are coming down," the person said."We're being more intelligent with how we're using placements on the retailer sites." CPCs, or cost per click, is the price advertisers pay for each person who clicks on an ad. Jeromy Rew, media director at WPP-owned Wunderman Thompson, added that retail media CPCs have also come down as retailers are now automating ad sales.The economic downturn is also impacting retail advertising prices, said Chris Costello, senior director of marketing research at Skai. For example, the important"return on ad spend" metric reveals how many sales come from each ad dollar spent.
Insider pulled data from four retail adtech and agencies to see how much e-commerce ads cost, based on the common CPC pricing mechanism.CPC prices: Down 5% year-over-year during Q1 with an average CPC of 93 cents, according to retail adtech firm Skai. In Skai's findings, Amazon saw the smallest change in ad prices out of six platforms over the past year because Amazon's ad platform is more established and bigger than its rivals. However, the slight decline in ad prices likely comesSeparate data from retail adtech firm Pacvue and ad agency Tinuiti similarly found that it's getting slightly cheaper for advertisers to run Amazon's core sponsored product ads that appear in search results.