• by Laurie Sullivan , Staff Writer @lauriesullivan, January 9, 2023

The average daily amount spent in paid-search advertising fell 18% in December compared with November, and the average cost per click (CPC) for paid-search advertising fell 9%, respectively, according to recent data.

The agency Skai -- which aggregates the data from its clients to identify industry trends -- saw that 20% of its paid search accounts spent about 10% or more per day in December versus November, compared with 53% spending 10% or less. Some 5% of accounts spent 50% or more per day in December versus November, compared with 11% of accounts spending 50% or less.

Some 30% of paid search accounts supported by Skai paid 10% or more per click in December versus November, compared with 35% that paid 10% or less.

About 3% of accounts paid 50% or more per click in December versus November, compared with 4% of accounts paying 50% or less.

A majority of accounts in paid search, paid social, and retail media all saw average daily spending decline by at least 10% in December compared with November. About one-third of accounts saw the CPC drop at least 10% in paid-search and retail media, while more than half of paid-social media accounts paid at least 10% less CPM.

Notably, the average daily spending in retail media advertising dropped 22% from November to December. Some 26% of retail media advertising accounts spent 10% or more per day in December versus November, compared to 52% who spent 10% or less.

Only 5% of accounts spent 50% or more per day in December versus November, compared with 14% of accounts spending 50% or less.

Skai also published data on the average CPC in retail media advertising, which fell 8% in December, compared with November.

Some 24% of retail media advertising accounts the agency supports paid 10% or more per click in December versus November, compared to 31% of those that paid 10% or less.

A mere 1% of accounts paid 50% or more per click in December compared with November, versus 1% of accounts paying 50% or less.

The benchmark is based off of Skai accounts in aggregate that spend above a minimum threshold for the previous three months. As of April 2022, spending benchmarks use average daily spend.