Marketers got a slew of retail numbers on Wednesday, much of it wrapped in cost-per-click (CPC) data.
U.S. retail sales slipped 1.1% in December from the prior month, but rose 6% compared with December 2021, reflecting the effects of inflation and weak demand, the Commerce Department reported.
Separately, the National Retail Federation (NRF) confirmed its holiday sales numbers, reporting that retail sales during the November-December 2022 holiday season grew 5.3% to $936.3 billion, compared with 2021.
CPCs were up and down in December, based on the platform. Pacvue released Q4 2022 CPC data on Wednesday -- all based on first-party numbers that highlight trends and insights across Amazon, Walmart and Instacart.
Ad spend on Amazon Sponsored Products rose 11% quarter-over-quarter -- down 0.8% year-over-year. Black Friday in November was the biggest driver of growth. Ad spend on Sponsored Brands rose 8.5% quarter-over-quarter, down 12.8% year-over-year.
CPC remained relatively stable. For Amazon Sponsored Products, the CPC was $1.21, remaining flat quarter-over-quarter (QoQ) and down 14.8% year-over-year. ROAS at $4.73 decreased 1.7% quarter-over-quarter with a 4.4% increase YoY. For Sponsored Brands at $3.77 return on ad spend fell 1.6% with a 0.3% increase annually.
In Q4, ad spend in the apparel category rose 74.42% year-over-year. ROAS was highest in the Toys and Game category during Q4, with October up 21.2% month-over-month at $8.74 and average CPC down 20.8% at $0.38 on Amazon.
Walmart Connect’s continued improvement in advertising relevance and placements has had a positive effect on click-through rates, as ad spend on the platform rose 17.95% QoQ and 31.49% year-over-year.
In Q4, CTR rose 21.57% quarter-over-quarter. The average CPC rose 16% QoQ to $0.65. As a result, average ROAS fell 12.55% QoQ to $6.06, but ROAS still high, up nearly 83% YoY.
Ad spend on Instacart increased 22.08% QoQ and 5.65% YoY -- with the average CPC in Q4 about $1.09, up 9% QoQ and a 6.86% YoY.
Average ROAS in Q4 was $4.37, representing a 7.02% decrease QoQ and a 4.80% increase YoY. ROAS remained consistent on Instacart during the past year.