Out of stock, out of pocket: retail ads have an efficiency problem, but what’s the fix?

“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. It’s what ShoppingIQ calls “the adtech industry’s little secret.”

Trust, transparency & the feed that fuels it

So, what’s being done about it? Not enough, say industry insiders.

Google has yet to publicly acknowledge the scale of the issue and, with no alerts, error messages and official workarounds, retailers are left footing the bill.

“Driving customers to out-of-stock product pages undermines trust and damages the user journey,” says Kieran Laurie, e-commerce director at Omnicom Media Group’s Flywheel. “Stock transparency isn’t optional – it’s essential.”

Brands such as Mamas & Papas have already made the switch to real-time feed optimization, using ShoppingIQ’s live stock insights to protect performance during peak moments. “Its tech helped us avoid wasted spend and focus only where it matters,” says Sami Dabek, senior digital marketing manager at Mamas & Papas.

But for an industry this reliant on automation, fixing the feed means more than just trimming the fat. As Hosseinbor puts it: “The future of performance marketing can’t be built on flawed fundamentals.”

Don’t pay the price for out-of-stock ads

For marketers and agencies, it calls for a rethink in how they monitor media waste. Here are three steps to help:

1. Audit your feed performance: Don’t assume everything’s working just because the dashboard’s green. Look at where ad spend is going and whether it’s aligned with live stock data.

2. Push for transparency from platforms: If you’re seeing inefficiencies, raise them. Silence shouldn’t be acceptable, especially when budgets and performance are on the line.

3. Optimize in real time: Relying on once-a-day syncs or default Google settings isn’t enough any more, especially when AI learns fast and forgets slow.