Marketers attribute the rise in advertising costs on Meta's platforms to Temu's ad spending surge, with suspicion that it is the largest advertiser on Meta.
Temu's advertising expenditure skyrocketed by 1,000% year over year, with 76% allocated to social media, likely impacting Meta's ad prices significantly.
With Temu investing over $46 million in social platform ads in Q1 2024, particularly on Facebook, its massive spending is expected to continue influencing the market.
While some brands are minimally affected, others are struggling with profitability due to increased CPMs and evolving ad strategies in response to Temu's aggressive advertising tactics.
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