Tinuiti’s Q1 2026 Digital Benchmark report shows ad spend rising faster than ad pricing across major platforms. Google, Amazon, Instagram, and YouTube saw growth driven by more clicks and impressions, while AI-powered campaigns like Performance Max and Advantage+ continued to shape results.
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Key Trends at a Glance: Digital Ad Spend Climbs Despite Stable Pricing
Did spending growth accelerate from Q4 2025 to Q1 2026 across Amazon Sponsored Products, Google Search, Instagram, Facebook, and YouTube ads?
Amazon Sponsored Product spending was up 21% year over year in Q1, driven by a 19% increase in clicks. Google seems unaffected by Amazon pulling out of the US Shopping auctions. Search ad spending for Tinuiti advertisers grew 14% year over year in Q1, marking the highest growth rate in nearly two years.
Google saw 11% year-over-year click growth for text search ads, while shopping ad clicks grew faster at 18% in Q1. This was partly driven by AI-powered Performance Max (PMax) campaigns. PMax made up 67% of Google Shopping ad spend in Q1 and delivered slightly better return on ad spend than standard Shopping campaigns for brands using both in Q1 2026.
Even though YouTube’s average CPM dropped 21% in Q1, deeper impressions drove a 20% increase in overall spend. TV screens played a big role, with spend on them rising 39% and making up 72% of video campaign budgets. They also accounted for 58% of Shorts ad spend.
Among growing platforms, Reddit stood out in Q1 with ad spending up 77% year over year, mainly due to higher pricing. Pinterest’s growth slowed a little, but ad spending still increased by a solid 27% in Q1.
Paid Search: Google Clicks Climb to Five-Year High with Stable CPCs
With Google Search spend up 14% in Q1 2026, how will the market react to Microsoft’s slower growth, rising CPCs, and Amazon’s shift to Microsoft Shopping?
Google paid search click growth stayed strong in Q1 2026, increasing 14% year over year, while average CPC remained flat once again. At the same time, Amazon’s reduced presence in Google auctions helped keep CPC growth under control.
Microsoft search ad spend grew 7% year over year in Q1 2026, slowing from 16% growth in the previous quarter. At the same time, average CPC growth for Microsoft paid search ads jumped from 5% in Q4 2025 to 12% in Q1 2026, while click growth shifted from a 10% increase in Q4 to a 5% decline in Q1.
Google Shopping ads saw 18% spend growth, 18% click growth, and flat CPCs, supported by strong Performance Max adoption and Amazon’s continued absence from auctions. Google Text Ads posted 13% spend growth with 11% click growth and just 1% CPC growth, while brand keyword CPCs actually declined 9% YoY.
Performance Max campaigns accounted for 67% of Google Shopping spend and 68% of sales, slightly outperforming Standard Shopping campaigns in ROAS for advertisers using both.
Paid Social: Social Ads Gain Momentum Despite CPM Challenges
Are Meta ad impressions continuing to grow in Q1, with Facebook spend staying steady despite shifts in impressions and CPMs, while Instagram sees its first CPM decline since 2023?
Impressions across Meta-owned platforms grew 17% year over year. Spend growth also rose from 9% in Q4 to 13% in Q1, while CPM decline eased from 7% to 3%. Newer formats like Reels on Facebook and Instagram continue to influence pricing and impression growth.
Facebook spend grew only 4%, with impression growth slowing to 8% and CPM improving from a 13% decline in Q4 to a 4% decline in Q1.
Instagram was the strongest Meta performer with 28% spend growth, 31% impression growth, and its first CPM decline since 2023 at -3%, driven by Reels now accounting for 33% of impressions. Meta Advantage+ Sales Campaign share dropped to 20% of retail spend from a 38% peak a year earlier, signalling advertisers are taking back more manual control.
In Q1 2025, Reels ads made up just 19% of Instagram ad impressions, but a year later they rose to 33%—the highest share ever for Tinuiti advertisers. Feed placements, once the top format in Q4 2023, have now dropped to 26%, behind both Reels and Stories.
Pinterest spend increased 27% with impressions up 37% and CPM down 8%, while Reddit spending surged 77%, driven largely by a 71% CPM increase.
Commerce Media: Amazon Maintains Momentum as Walmart Jumps Ahead
Amazon Sponsored Products spend stayed above 20% with strong click growth. Sponsored Brands rose slightly, while Walmart Sponsored Products jumped 62% YoY on huge click growth.
Amazon Sponsored Products maintained strong momentum with 21% spend growth, 19% click growth, 2% CPC growth, and 18% sales growth, keeping ROAS relatively stable.
Amazon Sponsored Brands remained weaker with only 3% spend growth, while clicks declined 10% and CPC increased 14%, causing advertisers to shift more budget toward Sponsored Products. Amazon Sponsored Display continued declining with spend down 34% YoY and CPC falling 49%, showing advertisers increasingly favor DSP over Sponsored Display.
Amazon DSP became a major growth driver with 41% spend growth, 14% impression growth, and 24% CPM growth, now accounting for 43% of total Amazon ad budgets for participating advertisers.
Walmart Sponsored Products delivered one of the strongest performances in the report with 62% spend growth, 57% click growth, and only 3% CPC growth, resulting in stronger ROAS.
Walmart Display also gained importance, reaching 39% of total Walmart ad spend as advertisers expanded investment beyond search placements.
Video & Display: Video Scales Fast as CPMs Fall Across Major Platforms
YouTube video ad campaigns are seeing TV screens drive 72% of advertiser investment, while YouTube ad spending has grown by 20% despite a significant drop in average CPM.
YouTube delivered 20% spend growth with impressions surging 52% while CPM fell 21%, making it one of the most efficient scale channels in Q1. TV screens dominated YouTube video campaigns, accounting for 72% of spend, while Shorts became the second-largest format with 18% of campaign spend.
Google Demand Gen remained a major driver with 22% spend growth, 59% impression growth, and CPM declining 23%, while video maintained 65% of Demand Gen spend share. Google Display Network spend rose 10%, but impressions fell 22% while CPM surged 41%, creating a very different efficiency story compared to YouTube and Demand Gen.
Streaming video ads outside YouTube grew 6% with impressions up 8% and CPM down 2%, showing slower but still stable expansion across premium streaming inventory. Amazon Prime Video remained a major contributor with 71% YoY spend growth, while TV screens captured 67% of total streaming video ad spend across services.
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