Out-of-Stock Media Waste: The Blindspot of Shopper Marketing
By Chad Bingle
Senior Director, Product at The Stable
What if you discovered that 20% of your budget was wasted on out-of-stock inventory?
According to Shopkik, over 69% of consumers will switch brands if their preferred item is out of stock. This is up nearly 200% from when Harvard Business School conducted a similar study in 2004 that reported 25% of shoppers were willing to switch brands when items are out of stock.
What do we make of this? How does this really impact your budget and ROAS?
Consider this: Imagine you’re out of stock 20% of the time and running digital media without any consideration of this fact.
That would mean $20 of every $100 ad dollars spent is wasted on out of stocks.
It also means that 69% of that $20 OOS waste could be directly triggering customers to switch to a competitor substitute brand.
That’s $14 for every $100. 14% of your budget is spent on driving customer growth for your competitors. If there was a term for this, it should be reverse conquesting or accidental charity.
We call it media waste and there’s a way to fix it. In this article we dig even deeper into the problem of out of stock driven media waste and how to solve it.
Read the full article on Out of Stock Media Waste
Follow us on Medium for more breakthrough CPG marketing inspiration and solutions.
