As Consumers’ Budgets Tighten, Brands Shift Online Ad Spend Away from Less Profitable Products

DataFeedWatch report on digital advertising.

While advertising budgets remain on a growth path in 2022, the ongoing challenges of inflation and consumer cuts in discretionary spending are causing ecommerce advertisers to shift their strategy accordingly.

Gone are the days when sending paid traffic to all products was an effective way to maximize profits. Instead, 65% of ecommerce advertisers globally are getting selective in their paid search advertising by excluding less profitable products from their pay-per-click (PPC) campaigns. 

Discounting is also becoming more prominent, with 26.49% of all products advertised across paid channels globally on sale. The three sectors featuring the highest levels of discounting are:

  • Fashion (36.98% of all products advertised on sale);
  • Health and Beauty (33.12%); and
  • Furniture (32.77%).

Get additional insight into the current state of online commerce and advertising globally in this infographic and the full report from DataFeedWatch by

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