To read the complete report, download it here<\/a>.<\/p>\n\n\n\n With ad prices dropping and reach expanding, advertisers now have a great chance to drive more traffic at a lower cost<\/strong><\/p>\n\n\n\n Even though pricing growth slowed, ad spend continues to climb across Google, YouTube, Instagram and Amazon Sponsored Products. <\/p>\n\n\n\n Regarding CPC and CPM trends, Google search CPC decreased by 1%, Facebook CPM dropped by 6%, and YouTube CPM declined by 14%. Clicks and impressions surged. Google Search clicks up 11%, Amazon Sponsored Products clicks up 31%, and Instagram impressions up 9%. <\/p>\n\n\n\n For many Google advertisers, Amazon\u2019s withdrawal from U.S. Google Shopping auctions in late July likely drove stronger click growth and softer cost-per-click trends, as the e-commerce giant\u2019s exit left a significant gap for competitors to fill.<\/p>\n\n\n\n Despite Amazon\u2019s absence from Google Shopping auctions, Sponsored Products continued to grow\u2014clicks jumped 31% year over year, while spend rose 15%. With Amazon off Google\u2019s listings, more shoppers may be starting their search directly on Amazon.<\/p>\n\n\n\n Sponsored Products ads performed strongly for Walmart in Q3, with ad spend rising 48% year over year. Unlike many other formats facing softer pricing growth, Walmart\u2019s Sponsored Products saw average CPCs climb 23% year over year.<\/p>\n\n\n\n Search remains a reliable performer, as rising click volumes and lower CPCs open up a cost-efficient opportunity for advertisers to grow<\/strong><\/p>\n\n\n\n Paid Search results were shaped largely by Amazon\u2019s exit from U.S. Google Shopping auctions in late July.<\/strong> This departure left a sizable gap in the marketplace, prompting competitors to quickly step in. This resulted in stronger click growth for many Google advertisers, but softer CPC trends overall.<\/p>\n\n\n\n After a sharp 19% year-over-year rise in Q1 2025, CPC growth for advertiser brand keywords has eased considerably, climbing just 5% in Q3. On the non-brand front, CPCs saw a mild 3% uptick early in the year and held steady through Q2 \u2014 but by Q3, they had dropped 7%. Although Amazon has exited Google Shopping listings in the U.S., it continues to hold a strong footing in text ads.<\/p>\n\n\n\n Meta and Pinterest lead growth, while TikTok and Snapchat\u2019s stability reflects renewed advertiser confidence in a balanced social mix<\/strong><\/p>\n\n\n\n Social platforms showed mixed performance, strong growth for Meta and Pinterest, stabilisation for TikTok, and sustained momentum for Snapchat and Reddit.<\/p>\n\n\n\n The share of Facebook ad impressions coming from Reels video ads has doubled \u2014 climbing from 7% in Q3 2024 to 14% in Q3 2025. Reels ads, previously called Reels Overlay ads, now make up 16% of total impressions.<\/p>\n\n\n\n Pinterest ad investment surged 63% year over year in Q3, fueled largely by a 52% jump in impressions. CPMs rose more modestly, up just 7% from the same period last year. Reddit advertising spend jumped 40% year over year in the third quarter \u2014 following gains of 33% in Q1 and 55% in Q2 \u2014 as more advertisers ramp up their investment to connect with Reddit\u2019s highly engaged audience.<\/p>\n\n\n\n Commerce media is growing fast \u2014 Walmart nears Amazon\u2019s ad efficiency, while Amazon\u2019s DSP gains momentum from rising Prime Video demand<\/strong><\/p>\n\n\n\n Retail media continued its sharp ascent, with Amazon and Walmart both recording strong double-digit growth.<\/p>\n\n\n\n With regards to Walmart :<\/p>\n\n\n\n In Q3, Sponsored Brands ads were 32% costlier than Sponsored Products, down from 43% in Q2. Sponsored Video CPCs also dropped, from 16% higher in Q2 to 11% in Q3. This trend follows Walmart\u2019s decision in November 2024 to lower the minimum bid for Sponsored Videos from $1.30 to $0.80, which has steadily helped narrow the CPC gap between ad types.<\/p>\n\n\n\n CTV and video continue to grow as cross-channel powerhouses, with lower CPMs and rising impressions improving efficiency for video-first advertisers<\/strong><\/p>\n\n\n\n Video remains a centrepiece of brand and performance campaigns, driven by YouTube\u2019s evolving ad formats and streaming\u2019s steady adoption.<\/p>\n\n\n\n Google Display Network (GDN) spending rose 4% YoY in Q3 2025, down from 6% growth last quarter. Impressions increased 7%, while CPMs fell 3%. Google\u2019s \u201cOther\u201d ad revenue, excluding Search and YouTube, has now seen single-digit declines for 12 straight quarters.<\/p>\n\n\n\n In Q3, mobile devices \u2014 both phones and tablets \u2014 made up 26% of traditional streaming ad spend, while computers added another 11%. When it came to RTB-purchased streaming ads, mobile and desktop together played an even bigger part, accounting for just over half of the total spending.<\/p>\n\n\n\n Once again, click here<\/a> to download the complete report.<\/p>\n\n\n\n Related Links<\/strong><\/p>\n\n\n\n Tinuiti\u2019s Q3 report showed a compelling mix of volume growth and softening ad prices. Impressions and clicks surged across major platforms, even as CPCs and CPMs moderated, signalling an increasingly competitive but efficient ecosystem for advertisers.<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","footnotes":""},"categories":[20,3,24],"tags":[],"class_list":["post-26797","post","type-post","status-publish","format-standard","hentry","category-amazon-ads","category-googl-search-tips","category-microsoft-ads"],"featured_image_src":null,"author_info":{"display_name":"Amita","author_link":"https:\/\/www.karooya.com\/blog\/author\/amita\/"},"_links":{"self":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/comments?post=26797"}],"version-history":[{"count":17,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26797\/revisions"}],"predecessor-version":[{"id":26822,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26797\/revisions\/26822"}],"wp:attachment":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/media?parent=26797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/categories?post=26797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/tags?post=26797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Overall Trends: Despite Softer CPCs, Ad Spend Hits New Highs<\/strong><\/h3>\n\n\n\n
![\"US](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/10\/image-7.png\")
<\/figure><\/div>\n\n\n![\"US](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/10\/image-8-1024x497.png\")
<\/figure><\/div>\n\n\nPaid Search Finds Its Balance: Rising Engagement, Falling CPCs<\/strong><\/h3>\n\n\n\n
\n
![\"Microsoft](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/10\/image-9-1024x354.png\")
<\/figure><\/div>\n\n\n![\"Google](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/10\/image-10-1024x477.png\")
<\/figure><\/div>\n\n\nPaid Social Reignited: The Big Three Make Their Moves<\/strong><\/h3>\n\n\n\n
\n
![\"Facebook](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/10\/image-11.png\")
<\/figure><\/div>\n\n\nCommerce Media Sees Explosive Growth: Click Volume Rockets for Sponsored Products<\/strong><\/h3>\n\n\n\n
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accompanied by an 18% increase in CPC<\/li>\n\n\n\n
21%, Average CPM increased 11% and impressions rose 9%<\/li>\n<\/ul>\n\n\n\n![\"Amazon](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/10\/image-12.png\")
<\/figure><\/div>\n\n\n\n
Video and Display: TV Screens Drive YouTube and Demand Gen<\/strong><\/h3>\n\n\n\n
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![\"YouTube](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/10\/image-13-1024x380.png\")
<\/figure><\/div>\n\n\n\n