As advertisers cut spend, ads on Google, Meta, and Amazon are cheaper than they’ve been all year — but marketers don’t expect it to last

• Big Tech missed Wall Street’s earnings expectations, partly from a drop in advertising revenue.
• Ad prices on Meta, Amazon, and Google skyrocketed during the pandemic but are now declining.
• Insider compiled data to show the swings in ad prices over the past year.

Digital ad prices have been skyrocketing since 2020.

But as the economy nears a recession, advertisers have reigned in spend. Meta and Google both suffered declines in their ad businesses and missed earnings expectations. While Amazon’s ad revenue grew 30% year-over-year, it warned of weaker-than-expected holiday sales, suggesting that advertisers may cut back if consumers spend less.

Digital ad prices are declining due to a number of factors: