Black Friday is peak retail season, but brands are losing money on Google Shopping ads for products they no longer have in stock.
The problem: Ads continue running even after products sell out, generating cost-per-click charges with zero chance of conversion. A study by ShoppingIQ of 500 global retailers found that 97% continued paying for clicks on sold-out products, sometimes for 24–48 hours.
Why we care. Out-of-stock ads not only waste money but also skew campaign performance and damage algorithmic learning. Low conversion rates on unavailable products can hurt rankings, reduce ROI, and disrupt future bidding efficiency.
Example: Argos reportedly continued advertising out-of-stock items during Black Friday, frustrating customers and draining ad budgets.
Stock update refresh rates:
- ~24 hours: 90% of retailers
- 6–23 hours: 5%
- 48 hours: 2%
- Other: 3%
Retailers’ response: Companies like Mamas & Papas are using ShoppingIQ’s real-time stock technology to focus ads only on available products. “We’ve cut unnecessary costs and ensured advertising focuses on products we actually have in stock,” says Samantha Dabek, Senior Digital Marketing Manager.
The bigger picture: Google Shopping dominates ~75% of US retail search spend, yet default settings allow out-of-stock ads to run unchecked. ShoppingIQ urges retailers to demand more transparency and control from Google to prevent wasted spend.
Bottom line: Real-time stock management is now a must for retailers running high-stakes campaigns during Black Friday and other peak periods. Otherwise, every wasted click is money down the drain.
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Source Link: https://searchengineland.com/study-retailers-are-bleeding-ad-spend-on-google-shopping-this-black-friday-465117