An investigation reveals that 99% of retailers continue to incur ad costs on Google Shopping for sold-out products, revealing a costly inefficiency. The analysis from ShoppingIQ indicates that between 5% and 12% of retail media budgets are wasted on these ads, particularly during high-demand periods like Black Friday. This problem affects campaign performance, data accuracy for AI models, and ultimately hurts retailers' future visibility online. According to industry experts, Google has yet to provide solutions, leaving retailers without recourse and their advertising budgets depleted.
"Retail marketers are running ultra-precise, data-driven campaigns - only to see them undermined by the platforms they rely on," says Alam Hosseinbor, director at ShoppingIQ.
It's not just wasted media. These inefficiencies muddy the waters of campaign performance, skew AI learning models and send smart algorithms off-course.
Once a product is out of stock, every click still registered by Google lowers conversion rates and signals underperformance, causing a knock-on effect in rankings and future visibility.
Driving customers to out-of-stock product pages undermines trust and damages the user journey.
Collection
[
|
...
]