At present, the supply impasse caused by soaring sea freight rates and container shortages is spreading pressure to US retail and advertising.
At present, the supply chain is facing a serious crisis, and a series of chain reactions have deeply affected advertisers.
In addition to the factory shutdown caused by the COVID-19 epidemic, the supply chain crisis is seriously affecting US port, highway and rail transportation, and pressure from the US transport industry is spreading to the retail and advertising industries.
The holiday shopping season for Thanksgiving and Christmas is just around the corner, but American consumers find that many shelves are short of goods, and merchants are considering reducing advertising spending because they are not sure whether they will be on the shelves and when they will be on the shelves. Advertisers' business has been seriously affected.
Jeremi Gorman, chief business officer of social media group Snap Inc, a bellwether for digital advertising in the United States, said in last week's third-quarter results thatThe global supply chain crisis has led to changes in supply and demand, and businesses are reducing their spending on advertising.
At present, there is a serious shortage in the commodity market, and because of the surge in demand during the holiday shopping season, merchants simply do not sell enough goods, so there is no need to advertise at all.At the same time, merchants will not place advertisements on products that are actually unsure whether and when they will be on the shelves.
Recently, food, beverages, clothing and daily necessities have been out of stock more frequently in US stores and supermarkets, according to the Financial Times. At the same time, merchants are not sure when they will be replenished, and some supermarkets have launched "restrictions on purchases", such as limiting consumers' purchase of daily necessities such as toilet paper.
Steven Cahall, an analyst with Wells Fargo & Co, commented:
The fourth quarter of each year ushered in the annual holiday shopping season in the United States, which is usually a particularly important time for advertising, as retailers and suppliers advertise their products before Christmas to reduce inventory.But this year, due to the supply chain, there are only a small number of goods on the shelves, and the demand for advertising has been greatly reduced.
In addition, it is worth mentioning that the automobile industry, because of the shortage of chips, car manufacturers continue to reduce production, but the market demand is surging, supply and demand is in short supply, so that businesses do not need advertising.
Generally speaking, because of the supply chain crisis, the inflationary pressure of merchants is increasing, which affects the advertising.
Edit / Charlotte