The Digital Ad Squeeze: Rising Costs, Less Control & What Advertisers Can Do

The digital advertising economy is looking less like a marketplace and more like a tax system. The platforms are setting the rates, controlling the rules, and squeezing advertisers at every turn. The illusion of control is fading, and if you don’t challenge where your budget is going, you’re likely funding someone else’s margin, not your own growth.

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Everywhere you look, the cost of advertising is going up, but the return is going down. The latest Tinuiti Q4 2024 Digital Ads Benchmark Report confirms it:

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🚨 CPCs are rising across Meta, Google, and Amazon.

🚨 Ad networks are taking a bigger cut, leaving advertisers with less.

🚨 Platforms are pushing AI-driven ad products that limit visibility on what’s actually working.

🚨 Retailers are becoming ad networks, forcing brands to pay for shelf space.

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And yet, in all of this, advertisers still pile money into the same platforms, playing a game where they no longer control the rules. If you’re not actively looking beyond core digital performance channels, you’re paying higher rents for shrinking returns.

1. Meta: Costs Up, Transparency Down

📈 Meta ad spend up 15% YoY. Levied in higher CPMs more than in impression growth.

📈 Advantage+ Shopping Campaigns now control 34% of retail ad spend

📉 Less control over targeting & optimisation

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Where the squeeze is happening:

• The growth in revenue for Meta was 2-3x higher than the growth in ad inventory. The advertiser is paying for this in higher CPMs. This is true in the full year picture as well as Q4 YoY picture.
• Meta is pushing Advantage+ Shopping Campaigns, forcing advertisers into an opaque, AI-driven model where targeting and spend allocation are decided by Meta, not you.
• Reels ads now make up 18% of impressions, but the shift to video raises production costs without necessarily improving conversion efficiency.

2. Google: The Cost of “Efficiency” Keeps Rising

📈 Search ad spend up 10% YoY

‍📈 CPC inflation continues. Advertisers are paying more per click

‍📉 Performance Max (PMax) is replacing traditional search, but with even less transparency

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‍Where the squeeze is happening:

• CPCs keep rising while click volume stays flat. Meaning you’re paying more for the same outcomes.
• Performance Max (PMax) campaigns now drive 67% of Google Shopping revenue, but brands can’t see where their ads are running or adjust strategy with precision.

3. Amazon & Retail Media: The New Ad Tax

📈 Amazon Sponsored Products spend grew 9%

‍📈 Walmart Sponsored Products spend soared 53%

‍📉 Retailers are becoming ad networks, making paid media a mandatory cost of doing business

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Where the squeeze is happening:

• Amazon is outbidding smaller brands on their own keywords in Google Shopping, forcing brands to pay Amazon to sell on Amazon.
• Walmart’s 53% ad spend growth signals a second major retail ad monopoly—it’s no longer about organic visibility, it’s about paying for shelf space.

4. YouTube & Streaming Video: The Premium Cost of Attention

📈 Connected TV (CTV) ad spend up 60% YoY

‍📈 YouTube’s CPMs fell 16%, but impression volume surged 28%

‍📉 Netflix & Prime Video command the highest CPMs—2.9x and 2.4x higher than traditional streaming

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Where the squeeze is happening:

• Advertisers are being pushed into higher CPM placements on CTV and premium video platforms, but without the creative investment to justify it.
• YouTube is flooding the market with inventory, but with less impact per impression.

Time to Think Bigger

The digital ad economy is not designed to serve advertisers. It’s designed to extract value from them.

• The platforms are consolidating control, and markets with effective monopolies don't serve their customers.
• Advertisers are being forced into opaque, AI-driven media buying models.
• Costs are rising without an equal rise in performance.

But there are myriad ways to divert a portion of your budget to spaces where great ideas can connect with real people.

• Out-of-home (OOH) & press media. Real-world, high-attention environments where brands can control their positioning. And worth remembering that quality news media is always brand safe.
• Direct publisher deals. Media buying without the intermediary tax, particularly in specialist B2B, high-net-worth, or niche audiences.‍
• TV & radio. Where CPMs have actually remained stable, and attention is higher than skippable, auto-play video formats.‍
• Contextual & programmatic direct buys. To get in front of relevant audiences without paying Google’s margin.‍
• Sponsorships & partnerships. In cultural, music, and sports events where the audience is truly engaged. As AI content floods our feeds, real, experiential spaces are going to be premium opportunities for brands.

The best opportunities don’t sit inside the core ad platforms anymore. They’re in real-world attention, brand-building, and audience ownership.