Brands Brace for Recession, But Only 3% Expect Media Channel Revenue to Decline in Q4 2022, Merkle Performance Media Report Finds | Techy Kings


  • Nearly half of respondents (49%) see creativity as “very important” to their customer experience strategies in the fourth quarter.
  • 39% of brands have measurement and budget plans that span a broader period rather than focusing on narrow timeframes like the “Cyber ​​Five”.
  • Less than half of respondents have inflation-related marketing strategies that vary by target audience and their unique inflation resilience.

COLUMBIA, Md., November 1, 2022 /PRNewswire/ — Merkle, dentsu’s leading technology-based, data-driven customer experience management (CXM) company, has released its Performance Media Report (PMR), a quarterly research report that analyzes and highlights performance media trends and the overall impact across digital media. Following the Q3 2022 PMR, Merkle identified several major changes for brands, including a lessening of concern around the impending privacy changes and cooling cost-per-click (CPC) and cost-per-impression (CPM) across channels. They also found that while brands are beginning to prepare for the effects of inflation and tighter consumer disposable incomes, there is less concern about inflation and other macroeconomic factors affecting revenue driven by media channels, with only 3% of brands expecting a revenue hit. drop Y/Y for Q4.

“As economic hardship continues, consumers are becoming more conscientious about how and where they invest their money. What worked a year ago just won’t cut it anymore,” said Liz Rutgersson, chief media officer at Merkle. “This report helps identify opportunities for performance media innovation and helps marketers create stronger customer experiences, invest in the right media channels and be agile with marketing strategies.”

Merkle’s PMR reveals that both brands and consumers are facing financial challenges and must adapt to the new landscape. Key trends revealed include:

Rising CPCs and CPMs are currently not as big of a problem for many organizations.

Compared to Q3 2022 PMR, fewer advertisers reported year-over-year CPC and CPM increases for paid search, display, Facebook and Instagram. In fact, CPC growth for both Google Shopping and Google text ads declined, with only 41% of respondents seeing year-over-year increases for each format. This is a welcome change after brands experienced significant upward pressure on CPC in 2021 and into early 2022; it will provide an opportunity for brands willing to invest additional budget to steal market share when competition is weaker.

Organizations have mixed feelings about impending privacy and change tracking.

In this survey, respondents showed slightly less concern that privacy and tracking updates will create significant challenges for their business, with 77% agreeing with that sentiment, compared to 83% in the previous report. But when talking about specific effects, tracking and privacy were still the biggest concerns. Across display and paid social, “accurately measuring performance in the face of new privacy regulations and tracking changes” was the second most selected priority, and in measurement, “getting an accurate picture of performance with new privacy regulations and tracking changes” was the top concern.

Retail is changing priorities for the holiday season.

Ahead of the holiday season, driving revenue and efficiency are not the clear winners when it comes to performance priorities. Increased brand awareness, acquiring new customers and retaining existing ones were increasingly ranked higher. The report found that brands are broadening their view of the holiday season, with 39% of brands having measurement and budgeting plans that span a broader period rather than focusing on narrow timeframes like “Cyber ​​Five.”

To learn more about the results within the Q4 2022 PMR, download the full report here.

About Merkle

Merkle, a dentsu company, is a leading data-driven customer experience management (CXM) company specializing in the delivery of unique, personalized customer experiences across platforms and devices. For more than 30 years, Fortune 1000 companies and leading nonprofits have partnered with Merkle to maximize the value of their client portfolios. The company’s heritage in data, technology and analytics underpins its unparalleled skills in understanding consumer insights that drive hyper-custom marketing strategies. Its combined strengths in consulting, creative, media, analytics, data, identity, CX/commerce, technology and loyalty and campaigns drive improved marketing results and competitive advantage. With more than 14,000 employees, Merkle is headquartered in Columbia, Maryland, with 50+ additional offices across the Americas, EMEA and APAC. For more information, contact Merkle at 1-877-9-Merkle or visit



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