Key Digital Advertising Takeaways From Retail's Biggest Season

Download Skai’s full Q4 2024 Quarterly Trends Report

Q4 is traditionally the most significant quarter for advertisers, representing the peak period for digital ad spending and a prime opportunity for launching new products or strategies. Notably, in Q4 2024, display CPMs increased by 39%, influenced by factors such as a shorter holiday season and ongoing election impacts. This surge underscores the dynamic nature of the advertising landscape during this period and offers advertisers a chance to make a meaningful impact.

This year, Q4 2024 unveiled several noteworthy trends. Retail media sustained its multi-year meteoric rise, while paid search and social exhibited steady performance, reflecting key shifts in the market. Despite predictions that the Cyber 5 would diminish in budget impact due to year-round sales and earlier holiday deals, consumers still concentrated their shopping during these days, reaffirming their significance. These insights show how critical flexibility and strategic alignment are for thriving in today’s market.

Take some time to explore the full report to gain a deeper understanding of the data and trends shaping digital advertising. These insights can guide smarter strategies, help marketers respond to changes in the market, and identify valuable growth opportunities. By using these takeaways effectively, marketers have a real chance to move beyond ordinary results and achieve standout success in 2025.

Here are five key takeaways from Q4 2024:

• Commerce strategies dominated spending: Shopping formats like Amazon DSP captured more budget share.
• Retail media continued its meteoric rise: Spending surged 23% YoY, driven by high click volumes.
• Ad prices reflect efficient scaling: Marketers are scaling budgets while keeping CPCs and CPMs stable.
• Cyber 5 remains critical: Shoppers still focused their spending during this key window despite year-round sales.
• TikTok’s uncertain future: TikTok continues to perform but faces challenges such as potential U.S. bans.

Commerce strategies dominated spending in Q4

Campaign types focused on driving direct sales outcomes, such as Amazon DSP and Advantage Shopping Campaigns+, fueled growth across retail media, search, and social. These formats’ alignment with performance metrics made them especially appealing in Q4. Their ability to deliver measurable ROI while maintaining scalability helped solidify their value to marketers.

For advertisers, commerce-focused strategies are no longer optional. These formats integrate well into campaigns aiming for efficiency, driving direct sales while also supporting broader brand goals. Their prominence signals a shift in how marketers allocate budgets.

Marketer Tip: Start 2025 by identifying which commerce media strategies align with your goals. Test new shopping formats early in the year to measure their impact and refine your targeting. Prioritize creative that highlights clear value propositions to drive conversions effectively.

Retail media continued its meteoric rise

Retail media saw another quarter of standout growth, with YoY spending up 23%, driven primarily by higher click volumes rather than rising CPCs. Platforms like Amazon DSP and Walmart Connect remain essential, offering high-intent audiences and measurable returns. This multi-year growth pattern shows no signs of slowing down.

For advertisers, retail media continues to stand out as a dual-purpose channel, effective for both conversions and brand-building. Its steady expansion offers opportunities to capture demand and build stronger connections with shoppers.

Marketer Tip: Begin 2025 by increasing investments in retail media. Test a mix of Sponsored Products and DSP campaigns to balance immediate sales goals with upper-funnel engagement. Leverage insights from Q4 to fine-tune your strategies for upcoming seasonal events.

Ad prices reflect efficient scaling

Ad prices across retail media, paid search, and paid social remained steady in Q4 2024, a sign that marketers are effectively scaling budgets without driving up CPCs and CPMs. Retail media, in particular, benefited from this efficiency, with CPCs rising only 3% YoY. This stability enables advertisers to amplify their reach without overextending budgets.

For marketers, this demonstrates the maturity of digital advertising strategies. Rather than being constrained by volatile costs, marketers can focus on optimizing their campaigns and maintaining cost efficiency at scale.

Marketer Tip: Kick off 2025 by revisiting your campaign metrics to identify areas for increased efficiency. Invest in scaling strategies that maintain cost-effectiveness, such as retargeting campaigns or testing new ad placements. Use stabilized CPCs to experiment with creative that enhances performance.

Cyber 5 remains critical despite year-round sales

Some experts predicted the Cyber 5 would have less impact on budgets as retailers moved toward year-round deals and earlier holiday sales. However, consumers continued to focus their shopping during these five key days, making them as relevant as ever. Cyber Monday’s later date in December also added an interesting twist, emphasizing the need for flexible planning.

For marketers, this reinforces the importance of tailoring campaigns specifically for this high-stakes shopping period. Adapting to shifting timing while maintaining a strong presence during Cyber 5 ensures relevance and maximizes returns.

Marketer Tip: Use Cyber 5 insights to shape your plans for 2025. Prepare earlier holiday promotions to capture demand before the peak shopping days. Invest in real-time analytics tools to make rapid adjustments during key shopping events.

TikTok’s uncertain future adds complexity

TikTok continues to excel in driving engagement and ad performance, achieving a 28% YoY increase in ad spending during Q4 2024, outpacing other social platforms. Its ability to connect with younger audiences has made it a go-to channel for brands looking to build awareness and foster engagement. However, its future remains unclear due to potential U.S. bans and ongoing regulatory challenges.

While TikTok is currently a top-performing platform, these uncertainties make long-term planning more complex for advertisers. Despite this, TikTok’s Q4 performance highlights its strong role in delivering results, particularly for campaigns aimed at Gen Z and millennial audiences.

Marketer Tip: Start 2025 by prioritizing campaigns that can deliver near-term wins on TikTok. Allocate flexible budgets to adapt quickly if the platform’s status changes. Continue focusing on authentic, creative content to maximize engagement, while TikTok remains a key player.

From trends to tactics: Shaping the year ahead

Q4 2024 presented a dynamic set of trends highlighting how digital advertising is evolving. From commerce-focused strategies driving growth to retail media’s continued dominance and TikTok’s unique position, these insights show the direction the industry is heading. By understanding these shifts, marketers can build stronger, more effective campaigns.

As 2025 begins, these trends offer actionable strategies to refine your approach. Whether it’s leveraging commerce media, adapting to seasonal patterns, or balancing efficiency with innovation, there are clear opportunities to make meaningful progress this year. Staying flexible and data-driven will ensure success in a changing landscape.

We welcome you to download the full report to explore these trends in more detail and uncover how they can shape your 2025 strategies.

Download Skai’s full Q4 2024 Quarterly Trends Report