Ad Spend on YouTube, Google Search, Amazon Sponsored Products Is Growing: Report

Why It Matters

The surge in ad spend across search, social, and commerce platforms signals that marketers are reallocating budgets toward high‑performing, intent‑driven inventory, reshaping the competitive landscape for digital advertising.

Key Takeaways

• Meta ad spend up 17% YoY, driven by Instagram Reels
• Google Search ads grew 14% YoY, hitting five‑year click high
• Amazon Sponsored Products clicks rose 19% for four straight quarters
• Walmart Sponsored Products spend jumped 62% YoY, clicks up 57%
• YouTube ad spend accelerated to 20% YoY growth in Q1

Pulse Analysis

The Tinuiti analysis underscores a broader shift toward video‑centric and intent‑based advertising. Instagram’s Reels format now accounts for roughly one‑third of all ad impressions on the platform, propelling a 28% year‑over‑year rise in Instagram spend. This vertical video momentum is offset by slower growth on Facebook, where ad investment barely moved and impression growth decelerated, suggesting advertisers are favoring newer, more engaging formats to capture audience attention.

Google continues to dominate paid search, with a 14% increase in ad spend and a five‑year high in click volume, even as Amazon withdrew from U.S. Shopping auctions. The resilience of Google’s search ecosystem highlights the enduring value of keyword‑driven traffic for brands. Meanwhile, Amazon’s Sponsored Products and Walmart’s Sponsored Products programs are delivering robust performance, with click growth of 19% and 57% respectively, and spend surges of 18% and 62% YoY. Advertisers are reallocating budgets from less effective formats, such as Amazon Sponsored Brands, toward these high‑conversion inventory types.

Video and display advertising are also gaining traction. YouTube’s ad spend jumped 20% YoY in Q1, outpacing its 13% growth in the prior quarter, while Amazon Prime Video ads, after a spectacular launch, are moderating to a 71% YoY increase. This continued appetite for streaming and video inventory reflects marketers’ pursuit of brand‑safe, premium environments to reach consumers increasingly fragmented across platforms. The overall trend points to a more diversified digital spend mix, where performance‑driven channels and immersive video formats command a larger share of marketers’ budgets.